David Rosenburg from his Daily Musings..

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 Rosenburgfrom 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.


“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.

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