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House Financial Services Grilling of Hank Paulson vs. ‘Recession Over’ Headlines
To keep it simple, Gross Domestic Product is down over 10%, which defines Depression, not recession.
Initial Claims for Unemployment, a leading economic predictor, continue to increase.
As at least one House Rep put it, we are in a situation worse than the Great Depression.
This is not likely to change anytime soon, despite rosy prognostications to and by and for the government monopoly media complex.
That the second derivative of unemployment recently decelerated is no guarantee it will not continue to increase or even accelerate again. It may be revised ex post facto when it is too obvious to hide the truth.
As the old saying goes, a recession is when your neighbor is out of work, a depression when you are out of work, and a panic when your wife and kids are out of work.
While BankAmerica, CNBC and Merrill Lynch talk about economic recovery and manipulate markets to suggest it, more Americans may be wising up to the fact that the Emperor has no clothes. They are saving more money rather than spending it.
After the fit hit the shan the savings rate jumped from negative numbers to 7%. It may well go to 50% before the economic Winter is over. Taxpayers hold Tea Parties to protest higher taxes during a Depression. Some continue to take their money out of the country while Swiss Bank UBS so far refuses to turnover 52,000 American citizen names of secret accounts, including former Presidents.
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