I have not written much on the markets of late, mainly because I have struggled to stay up to date with our move to Utah, but I am trying to get my head back in to it. My favorite commentators remain in the bearish camp, in particularly David Rosenburg
from Gluskin Sheff. (formerly of ML) David has a FREE newsletter with is excellent. Click here to subscribe. Below you will find an excerpt from today.
YOU KNOW YOU ARE IN A DEPRESSION WHEN …
“Congress moved to extend jobless benefits seven times, as has been the case over the past two years, at a time when almost half of the ranks of the unemployed have been looking for at least a half year.
The unemployment rate for adult males (25-54 years) hit a post-WWII this cycle and is still above the 1982 recession peak, and the youth unemployment rate is stuck near 25%. These developments will have profound long-term consequences – social, economic and political.
The fiscal costs of the depression continue to mount, with the White House on Friday raising its deficit projection for 2011 to $1.4 trillion from $1.267 trillion. That gap in the forecast – $133 billion – was close to the size of the entire budget deficit back in 2002. Amazing.
You also know it is a depression when you find out on the weekend that the FDIC seized and shuttered another seven banks, making it 103 closures for the year. What a recovery! “
Not exactly great news for a Monday morning. Sorry… This deficit number is haunting. I go back to something I wrote in one of my very first blog entries years ago. I fail to see how you can “spend your way out of a problem created by too much spending.” Printing money and monetizing the debt continues to seem likely.