David Rosenberg: The U.S. Is in a Form of Depression 8 comments
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It's the have your cake and eat it too stock market... good news is a reason to buy stocks because data is improving, and bad news is a reason to buy stocks because data is NOT improving...which means more stimulus and Federal Reserve handouts. It's the Goldilocks stock economy.
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Overheard on the streets of New York City...
--->David Rosenberg to Stock Market : "US economy in form of depression"
--->Stock Market to David Rosenberg: "Depression? If that means more stimulus and free money, we're all for it. Buy Stocks!"
Carry on....
(11 minute video, email readers will need to arrive at website to view) Please note, Rosenberg is considered a realist permabear).
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Just in time for the holidays: More gloom and doom from a well-known economist. David Rosenberg, who used to be Merrill Lynch's chief economist and now works for Gluskin Sheff of Canada, told CNBC Tuesday that the US economy is mired in an economic crisis that shows only scant signs of abating.
"We're in a form of Depression," Rosenberg said in a live interview. "
Depressions...typically happen after a prolonged period of credit excess morphs into a collapse and you get asset deflation. We had asset deflation and we had a contraction in private-sector credit."
Rosenberg is just the latest well-known expert—including New York University's Nouriel Roubini and Pimco bond fund's Mohamed El-Erian—to warn that the economy remains mired in either no growth or slow growth that will last several years.
"This is a different animal than the garden-variety of recession that we're used to forecasting in the post-World War II era," he said. "The Fed started reducing rates in 2007 and here we are debating when did the recession end." "We are basically in a post-bubble credit collapse," Rosenberg said. "Is the recession technically over? You know what? All the expert seem to agree on that. That's what has me a little nervous."
[Oct 19, 2009: David Rosenberg on CNBC]
[Oct 2, 2009: David Rosenberg Makes the Case for Canada as a Low Beta Emerging Markets Play]
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Perhaps if they had used a few $trillion they took from the taxpayers, effectively. Perhaps if they hadn't blown $trillions via insane debts and deficits during "prosperity" their insane policies have already brought us before the meltdown. But now, what we have is a sick, sick patient pronounced healthy by the quacks who brought it here who happen to be the biggest con artists and swindlers of all time.
Main Street's depression is WashDc's opportunity ("too good to waste") for collectivization and preening.
Main Street's poison is meat and drink for WashDc, Wall St and the MSM: profiting from misery is the creed of the ruling Troika.
For the middle class family with no jobs, no income, no credit and no home, relying on the kindness of family, friends and strangers for the essentials of life the "form" of the depression is "deep and dark".
Its like saying rich people behaving badly is ok and workers behaving badly is not ok.