Come on everybody!
Clap your hands!
All you looking good!
I’m gonna sing my song
It won’t take long!
We’re gonna do the twist
and it goes like this:
Come on let’s twist again,
like we did last summer!
Yeaaah, let’s twist again,
like we did last year!
Do you remember when,
things were really hummin’,
Yeaaaah, let’s twist again,
twistin’ time is here!
Heeee, and round and round and up and down
we go again!
Well, Société Générale was wrong. No QE. Instead, dear reader, it’s the Chubby Checker monetary strategy.
Reuters is on the case:
(Reuters) — The US Federal Reserve on Wednesday delivered another round of monetary stimulus and said it was ready to do even more to help an increasingly fragile US economic recovery.
The central bank expanded its “Operation Twist” by $267 billion, meaning it will sell that amount of short-term securities to buy longer-term ones to keep long-term borrowing costs down. The program, which was due to expire this month, will now run through the end of the year.
Fed Chairman Ben Bernanke, speaking at a news conference after a two-day policy meeting, said the central bank was concerned Europe’s prolonged debt crisis was dampening US economic activity and employment.
“If we are not seeing sustained improvement in the labor market that would require additional action,” he said. “We still do have considerable scope to do more and we are prepared to do more.”
The Fed slashed its estimates for US economic growth this year to a range of 1.9 percent to 2.4 percent, down from an April projection of 2.4 percent to 2.9 percent. It cut forecasts for 2013 and 2014, as well.
Hiring by US employers has slowed sharply, factory output has slipped and consumer confidence has eroded, with Europe’s festering crisis and the prospect of planned US tax hikes and government spending cuts casting a shadow on the recovery.
The economy grew at only a 1.9 percent annual rate in the first quarter — a pace too slow to lower unemployment — and economists expect it to do little better in the second quarter.
C’mon everybody…clap your hands! The Fed is prepared to do more…damage!
But what’s this? You just can’t please some people. The New York Times tells us about the complainers…
Throughout the Great Recession and the not-so-great recovery, the most commonly discussed measure of misery has been unemployment. But many middle-class and working-class people who are fortunate enough to have work are struggling as well…
We won’t keep you in suspense. They’re struggling because real, hourly wages are going down. Back to the TIMES:
These are anxious days for American workers. Many…are underemployed. Others find pay that is simply not keeping up with their expenses: adjusted for inflation, the median hourly wage was lower in 2011 than it was a decade earlier, according to data from a forthcoming book by the Economic Policy Institute, “The State of Working America, 12th Edition.” Good benefits are harder to come by, and people are staying longer in jobs that they want to leave, afraid that they will not be able to find something better. Only 2.1 million people quit their jobs in March, down from the 2.9 million people who quit in December 2007, the first month of the recession.
“Unfortunately, the wage problems brought on by the recession pile on top of a three-decade stagnation of wages for low- and middle-wage workers,” said Lawrence Mishel, the president of the Economic Policy Institute, a research group in Washington that studies the labor market. “In the aftermath of the financial crisis, there has been persistent high unemployment as households reduced debt and scaled back purchases. The consequence for wages has been substantially slower growth across the board, including white-collar and college-educated workers.”
The unease of voters is striking: in a New York Times/CBS News poll in April, half of the respondents said they thought the next generation of Americans would be worse off, while only about a quarter said it would have a better future.
What’s the matter with these people? Can’t they hear the music? Don’t they want to join the party?
for The Daily Reckoning
Since founding Agora Inc. in 1979, Bill Bonner has found success in numerous industries. His unique writing style, philanthropic undertakings and preservationist activities have been recognized by some of America's most respected authorities. With his friend and colleague Addison Wiggin, he co-founded The Daily Reckoning in 1999, and together they co-wrote the New York Times best-selling books Financial Reckoning Day and Empire of Debt. His other works include Mobs, Messiahs and Markets (with Lila Rajiva), Dice Have No Memory, and most recently, Hormegeddon: How Too Much of a Good Thing Leads to Disaster. His most recent project is The Bill Bonner Letter.
“What’s the matter with these people? Can’t they hear the music? Don’t they want to join the party?”
Tone deaf, man, tone deaf…
LET’s PANIC AGAIN Like It’s 2008…
Bill has been in a panic every year since about 2000. He waits, impatiently, for society to collapse.
Bill seems fairly calm for being in a supposed panic. I’d say he’s describing societal malaise, not pending collapse.
Bill knows the reckoning will be sooner rather than later.Societal malaise is a contributing factor to the pending collapse.
Maybe Benny and Timmy can sing a duet over their “green
shoots.” That might help.
“There’s a light over at the Frankenstein’s place…”
Rock Horror Picture Show
Right on reeyaz! Couldn’t agree more. If you are for-warned and prepared you do not “panic”.
Bill Bonner is perhaps the brightest, wittiest, and most knowledgable writer out there, (and there’s a bunch) and has been way ahead of most everyone. That is why we read him every day. Read his books. His writing style is something else. Homes in several countries and the means to get there and live well. Him panic”? We should all be so lucky. (Sounds like a love fest doesn’t it? Ha!)
Remember, housing was over 70% of the economy before the housing/financial crash. And there is no “big new thing” coming to take it’s place showing itself anywhere. Over 45 million doing basically nothing useful being supported by those that are, cannot last. What will “they” or can we do about this? The “broken window theory” nonsense comes to mind. Ya,right! Uh huh! People need real purpose in their work, not pretend crap jobs. Non-working people can and will soon become very dangerous. That is my worry.
I personally do not see a way out of this debacle. He is right-on! It must ALL be “flushed” first, before we can even try to begin again.
There will be less prosperity for Americans until they embrace free market capitalism and reject statism and socialism. They are not ready to do this yet. They think they are above the laws of economics. There will be serious dislocations.
Let’s vote The Investors Friend and Gman off the island …lol!
Wait though, Gman has promised to become a kindler, gentler critic of Bill’s work or something to that effect.
Bill is brilliant, his timing might not be perfect but the message is right on the mark!
One agrees with Bill and then one agrees with Gman. Go figure.
See Hegels master slave dialectic.
Bill, you’ve got to keep writing.
Gman, you’ve got to keep writing too.
Otherwise you’ll both disappear in a puff of logic.
Obama and the FED are trapped until after the election. If they print, the pubs will claim their loose monetary policies and reckless spending are bad. If they don’t print, the stock market will erode and the pubs will claim his economic policies don’t work.
If I were Obama, I would print. I think the general electorate cares more about the dow than the FED balance sheet.
Sorry,my mistake,there is no pending collapse rather they demolished the entire system when they shut the gold window and now theyre trying to build castles in the air.
…lately i don’t mind getting up before sunrise, the city is so calm and peaceful…bill bonner is different from most other roosters, his message is too early for sleepy heads…wake-up y’all!…Come on everybody!
Clap your hands!
All you looking good!
I’m gonna sing my song
It won’t take long!
great to be here
Byron King updates his “Fifth Domain of War” thesis… and recommends what he considers the best cybersecurity play today...
Our economy, consumer society, and retirement programs are all in jeopardy in the face of a looming demographic dilemma. Read on to learn about the dire situation with pensions and social security, and what you can do to protect yourself...
David Stockman follows up on his first dispatch, making the case for Greece to default and leave the euro. He details the impact of such a move and more...
Charles Hugh Smith explains that promises made in flush times cannot be kept in lean times, especially when it comes to pension plans...
After Monday’s wild ride, the broad market has settled back into a boring “holding” pattern. Greg Guenthner highlights the select market sectors are way out in front for you. These are the places you need to invest in...