Saturday, November 30, 2013

US Recession Is Nigh And The Fed Can’t Stop It. Investors Demand A Sign Of When To Get Out And That Trigger May Have Just Arrived

US recession is nigh…and the Fed can’t stop it: SocGen’s Edwards
The United States might be posting some promising growth data amid government shutdowns and debt ceiling debates, but Albert Edwards, Societe Generale’s uber-bearish strategist, has predicted a recession is coming for the world’s biggest economy.
“No-one expects a recession is around the corner, but in my experience, they never ever do,” Edwards said in his latest note released late on Wednesday.
“The doomsayers who predicted that this recovery was on the verge of faltering have been proved wrong, and like the boy who cried wolf, can be safely ignored by the market. Yet that is exactly what happened in 2006 with the U.S. consumer and housing boom, where the voices of caution had been so wrong, for so long.”
Albert Edwards – ‘Investors Demand A Sign Of When To Get Out And That Trigger May Have Just Arrived”
With every other bear throwing in the towel left and right these days, we fully expected that the latest letter by SocGen’s Albert Edwards would have something about “how much he hates looking at himself in the mirror, but…” and then we would be served with some garbage like the following margin expectations [9]chart.
 
Crying wolf or not, what Bernanke and his central-planning henchmen are now doing, is simply delaying the inevitable day when realty finally catches up with every cycle, and law of nature that the Fed, courtesy of hundreds of billions of de novo liquidity, has – until this point – successfully deferred. The problem is that perhaps the most important law – that of diminishing returns – is now fianlly breathing down Mr. Chair(wo)man’s neck.
Spot The Difference
Greater-est fools? Or different this time?
Poverty under Obama rises to alarming level
NEW YORK – As Americans celebrate Thanksgiving, it is important to remember that despite establishment-media reporting of an Obama “economic recovery,” the number of Americans on welfare today is higher than the number that have full-time jobs, says Michael Snyder, creator of TheEconomicCollapseBlog.com.
Snyder outlined the economic reality in a recent editorial that points out the fragility of the U.S. economy.
“The gap between the wealthy and the poor is at a level that America has never seen before, and this is beginning to create a ‘Robin Hood mentality’ that could cause a tremendous amount of social chaos in the years ahead,” Snyder writes.
“Anger at the ‘haves’ in America continues to rise at a very alarming pace, and the ‘have nots’ are becoming increasingly desperate. At some point all of this anger is going to boil over, and you won’t want to be anywhere around major population centers when that happens.”
“I Work At McDonalds, But I Can’t Afford To Eat There”
For Shawndraka Mack, a 100% pay rise from her current $7.60 “would do just fine.” While some employees turn to blood plasma donation, and most are on food stamps (and other benefits), the mother of two teenagers (on Medicaid) told Bloomberg Businessweek, “I love what I do, but I don’t want to work for nothing.” Between the 40 hours a week she works and the benefits, Mack explains, “I work at McDonald’s and I can’t afford to eat there. It’s crazy.” Of course, McDonalds has ‘tips’ for surviving on their state-subsidized wages but once again, despite Harry Reid’s extrapolated charts, the reality of raising the minimum wage is lost on most who never stop to think of where the ‘money’ comes from; and besidesemployees have little to no leverage as we explained here.
AGAIN? Former Fed Chairman And Bubble Maker Greenspan Sees No Stock Market Bubble
Nov. 27 (Bloomberg) — Former Fed Chairman Alan Greenspan who has apologized for miscalculations in the past has said the U.S. economy probably will grow more slowly next year than some forecasters predict & indicated that a record U.S. stock market isn’t in a bubble. He spoke in an interview on Bloomberg Television’s “Political Capital with Al Hunt” airing this weekend. Angie Lau reports on Bloomberg TV’s “First Up.”

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