johnthebear

Four Reasons We Can't Call It a Recession - Yet

Why does it matter what you call it or when? If you are hurting, you know there is a recession that is affecting your life in a real way.

The entire world is slowing down. Markets all over the world have lost $12 trillion dollars in equity that is not won by a group of winners... only losers... not a zero sum game!

Just how do you suppose the banks around the world will re-capitalize sufficiently to go back to making loans needed for future economic expansion? Governments can print lots of cash, called "inflation fuel" but how does that help in the long run?

Looks like we will have to be very patient for a very long time and think about survival, just as our grandparents did in the 1930's.

I think it time to give "Big Oil" big financial incentives to bring "New Production" on line in 24 months, giving them a big tax break. That means drilling off shore, Alaska and in the West. Make a case by case determination with the benefit of the doubt going to the Oil Companies.

Think about it, almost all high tech companies make a higher return on equity than the Oil Companies, they sell at higher PE ratios and the dividends by the oil companies are modest by anyone's standards.