Rdan

And Bernanke Didn't Think Unemployment Would Reach 10%

I am afraid your interpretations come up short, Mike. As a political shout out it is okay, but using Jan and Feb quotes isn't useful...please avoid using simple rhetoric and add thought to the piece.

The Next Major Crisis Brewing

Boy does this guy not understand what is happening.

The greatest untold or underreported story around
is that the great recession has massively reduced
US dependence on foreign capital. The combination
of massive increases in corporate cash flow and
improved consumer savings has massively increased the supply
of savings and cut private borrowing ,

As always happens in a recession the increase in
federal borrowing is more than offset by the drop in
private borrowing.

That is why, as the WSJ editorial page loved to point
out for years the correlation between govt debt and
interest rates is negative.

Moreover, this has to show up in a sharp contraction of
the US trade and current account deficit and a comparable
plunge in US borrowing abroad.

The question is how much of this is cyclical and how
much is secular. But even if it is just cyclical, it
will be some time before US dependence on foreign
capital rebounds significantly.

90% of what you hear about the weak dollar is pure
bullshit by people who have no idea what they are
talking about as this article demonstrates.

Note that the chinese yuan abainst the dollar
has been rock solid and the trade weighted yuan had
fallen, increasing chinese competitivness against
Japan and Europe.

Rebounding Despite GDP Contraction

I don't get it....no data???

Ghost Malls: Coming to Your Town

Jim,

While the discussion here is okay, could you write another post putting our troubles in the context of global trade and our trade deficit. I fear that only a national point of view underestimates our problems.

And then cross-post? Stormy and Movie Guy have clear understandings of the global nature of economies.