Friday, June 5, 2009

Irrational Debt spending party

Based on the big debt spending economy, market speculators are spinning unreasonable bullish sentiment. As noted on previous comments, our economy does not have a real producing power which will sustain the future economic growth when the debt-spending growth exhausts the trillion allocated to sustain the economy. The reported unemployment rate today is nearly 10% which is understated when we consider those who are underemployed or left out from the statistics since the 2000 tech bubble crash. The 2002-2007 Economy was mainly based on the home mortgage spending and the R.E. bubble which is not a real economic growth period, but consuming the Americans' wealth exhausting the saved wealth.

The reality of our economic condition is that many Americans are going through financial crisis, and, furthermore, many are unemployed. Therefore, obviously, US Economy is much worse condition than financial market media is reporting and worse than that of 2002-2003. The understanding of the economic reality is not difficult as anyone can see the reality by exercising a rational and realistic mind based on the facts that we know. Based on the facts noted above, it is unreasonable to think that our economy is hopeful without genuine job growth from non-debt spending is false hope.

The debt spending bull party went on. http://www.cnbc.com/id/31129484/

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