davidbdc

David Rosenberg on 'The Mother of All Jobless Recoveries'

Given the fact that unemployment is pointing to depression but we are in a recovery, you should conclude that this recovery will fade once government stimulus is removed
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I draw a very different conclusion. We are developing a Western European economy with a permanent underclass. I think too much is made of the 17.5% that includes "everyone". We have always had folks that work on the "fringes" of the economy and while would agree that number has probably doubled over the past few years, the core 10.2% should be our primary concern.

The only way to turn this around is to cut social spending and increase infrastructure spending and personal savings (which also leads to investment). And that will take time and discipline.

We face much graver political risks. Our politicians are too cowardly to cut social security. They don't have the backbone to build 50 new nuclear power plant with a new elecricity grid. We need to raise taxes on gasoline to reduce demand. We need to balance the budget immediately, not "sometime after I'm out of office". No increase in health care spending until we develop a car battery that can run on all our new nuclear generated electricity. No more putting off to tomorrow what needs to be done today.

Americans need to be told the truth - you've lived way above your means. Everyone will have to sacrifice and it won't feel good for several years. And before you blame some political party - look in the mirror......you believed all the politicians lies when you had to know they couldn't possibly be true.