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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