12/01/09 Stockholm, Sweden – Recognized financial editor John Mauldin recently gave a “Thoughts on the Continuing Crisis” lecture where he showed the US is entering a deflationary period much like the one Japan’s been in for about two decades.
The Business Insider has put together a slideshow of over 20 of his charts, and here are 11 highlights from the presentation:
1. The US headline Consumer Price Index indicates deflation
2. A record nine million Americans, more than at any other time, are working part-time for economic reasons
3. U6, the “real” unemployment measure, has hit new highs… and, when you include workers who’ve given up on finding a job, unemployment rises to 21.1 percent
4. 33 percent of the unemployed have been looking for jobs for over six months, more than ever before
5. Available jobs continue to decrease at a much steeper rate than in an average recession… 18 million brand new jobs must be created over the next five years in order to return employment to 2007 levels
6. US consumer borrowing is grinding to a halt and personal saving has turned sharply higher
7. Prime mortgage delinquency rates are rising and are increasingly mirroring the subprime problem
8. The recovery is most likely to be a W-shaped… and we still have yet to hit even the first bottom
9. Bank lending to both consumers and businesses has fallen off dramatically
10. Money supply, as measured by M2, has stayed flat and the velocity of money is way down
11. Government tax receipts have tanked, and by almost any estimate the annual budget deficits are going to be in the trillions
Here is the complete continuing crisis slideshow at The Business Insider.
Rocky Vega
Rocky Vega is publisher of The Daily Reckoning. Previously, he was founding publisher of UrbanTurf and RFID Update, which he operated from Brazil, Chile, and Puerto Rico, and associate publisher of FierceFinance. He specialized in direct marketing at MBI, facilitated MIT Sloan School of Management programs, and has been featured on CBS. Vega graduated with honors from Harvard University, where he was on the board of Let’s Go Publications and directed business programs involving McKinsey, Goldman Sachs, and Harvard Business School faculty. He is also enrolled at the Stockholm School of Economics.
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