Mr. Sensitive

July 13, 2012

We’re In Trouble, Steinbeck-Style

Filed under: Uncategorized — lbej @ 09:03

I’m worried about the U.S. economy; the stock market is pricing in a recession in a very subtle way, and with an economic contraction so soon after the Bush Recession the stink of the 1930s will be unmistakable.  After all, the onset and severity of the Great Depression owed much to the violent unwinding of speculative greed and corporate mismanagement rampant during the 1920s; if we’re suffering through a similar purgative period now, it wouldn’t be for the first time.  Why am I worried?  It’s this chart:

That’s the 1-year chart of Wal-mart, the world’s largest recession accessory.  Compare that chart to this

of our own Joy Global, maker of heavy machinery and other such equipment needed to actually build or otherwise accomplish things.  Does that make you feel good, America?  How about a 10-year chart of Wal-mart?

Wal-mart, history’s ultimate poverty profiteer, is pushing 10-year and ALL-TIME HIGHS.  The stock’s previous peak was in September 2008—anybody remember September 2008?  If I say Lehman Brothers, AIG, or banking crisis, do you remember now?  Wal-mart is predicting a severe recession, and Wal-mart is never wrong.  My lone, perverse hope is that if a second market meltdown arrives, burying the economy with it, it will at least wipe out the installed base of lawmakers and lobbyists from both major parties committed to nothing but winning elections and reaping the spoils.  They all have to go—both parties at the national level and every elected official too cowardly to face the country’s problems (for example…all of them).

All we need is a Dust Bowl and this will feel exactly like the last days of Herbert Hoover all over again.  Good thing we’re all clear there.

July 12— The United States Department of Agriculture has declared natural disaster areas in more than 1,000 counties and 26 drought-stricken states, making it the largest natural disaster in America ever. (Yahoo! News)

Never mind.


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