Bailout Fail

All-Time High Unemployment: Depression In Europe Getting Deeper

"This week we learned that eurozone unemployment came in at an all-time high of 12.2 percent for September. Back in January 2012, it was sitting at just 10.4 percent. The funny thing is that the mainstream media will barely call what is going on in Europe a 'recession' even though the unemployment rates in both Spain and Greece are now much higher than anything that the United States ever experienced during the 'Great Depression' of the 1930s. A 25-year-old Spanish man with three college degrees that moved to London in a desperate search for a job is now cleaning up poop for a living. The economic collapse of Europe continues to march on, and there is no end in sight." Continue reading →

Continue ReadingAll-Time High Unemployment: Depression In Europe Getting Deeper

Bill Bonner: The Real Numbers Behind America’s Phony Recovery

"What kind of economy is it that reduces a man’s wages over a 43-year period? We don’t know. But it’s not likely to win any prizes. But why, with so many strikes against it, does the US economy still have the bat in its hands? It’s partly because the Fed has pumped up stock, bond and house prices – not to mention net corporate profit margins and consumer spending . So, the averages look pretty good… and they mask the ugliness beneath them. The bottom 90% of the population – people in 9 houses out of 10 – have 10% less income than they had 10 years ago. This is not a success story. It’s a disaster. And not one that tempts us into an overvalued US stock market." Continue reading →

Continue ReadingBill Bonner: The Real Numbers Behind America’s Phony Recovery

It’s Hard to Summon Sympathy for Big Banks

"It may not be easy to be sympathetic to the big banks, but it is easy to understand their surprise and frustration. They have gone from being viewed as national champions — proof of a country’s standing in the world — to being seen as a potential source of national disaster. Iceland and Ireland went broke because they had to, or chose to, bail out their irresponsible banks. Eric H. Holder Jr., the attorney general, did not help when he said last spring that the Justice Department had to keep in mind that filing criminal charges against a large bank could 'have a negative impact on the national economy, perhaps even the world economy.' He quickly backtracked, but the perception was reinforced." Continue reading →

Continue ReadingIt’s Hard to Summon Sympathy for Big Banks

Andrew Huszar: Confessions of a Quantitative Easer

"I can only say: I'm sorry, America. As a former Federal Reserve official, I was responsible for executing the centerpiece program of the Fed's first plunge into the bond-buying experiment known as quantitative easing. The central bank continues to spin QE as a tool for helping Main Street. But I've come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time." Continue reading →

Continue ReadingAndrew Huszar: Confessions of a Quantitative Easer

Inflation Has Not Cured Iceland’s Economic Woes

"Both countries still have problems. Iceland’s monetary controls are notably stifling needed investment, while Ireland is left with a large debt from bailing out its banks, and this is stalling growth. One thing is clear though — the effects of monetary policy are stark and the proclaimed benefits of Iceland’s inflationary policy were counteracted by the price inflation that ensued. Don’t let a good crisis go to waste; learn something from it. As the tale of these two countries demonstrates, inflating one’s currency may give the appearance of recovery, but the truth is somewhat less rosy." Continue reading →

Continue ReadingInflation Has Not Cured Iceland’s Economic Woes

Greek police arrest one of their own while raiding neo-Nazi party’s offices

"A 45-year-old officer, who is working as the bodyguard of a Golden Dawn lawmaker, was detained during the raid at party offices in central Greece, a police source said. The links between Golden Dawn and police have come under intense scrutiny in Greece after the murder of an anti-fascist musician by an alleged member of the party. Further raids of Golden Dawn’s offices are expected in coming days, the police source said. Capitalising on a rise in social tension in the debt-stricken country, Golden Dawn was first elected to parliament last year with nearly seven percent of the vote, winning 18 seats out of an overall 300." Continue reading →

Continue ReadingGreek police arrest one of their own while raiding neo-Nazi party’s offices

White House to Give Detroit $300 Million in Federal Aid

"Nearly $150 million of the proposed $300 million will go toward the demolition of Detroit’s many dilapidated and abandoned buildings. Another $140 million will go toward the city’s public transportation system, including renovations for buses (including more security cameras) and the city’s now-under construction light-rail system. Lastly, approximately $30 million will go toward hiring more firefighters to help the city deal with its arson problem and $3 million will go toward strengthening the city’s police force. But although the funds may come as a blessing, they won’t even come close to addressing the city’s $18 billion in liabilities." Continue reading →

Continue ReadingWhite House to Give Detroit $300 Million in Federal Aid

White House to Give Detroit $300 Million in Federal Aid

"Nearly $150 million of the proposed $300 million will go toward the demolition of Detroit’s many dilapidated and abandoned buildings. Another $140 million will go toward the city’s public transportation system, including renovations for buses (including more security cameras) and the city’s now-under construction light-rail system. Lastly, approximately $30 million will go toward hiring more firefighters to help the city deal with its arson problem and $3 million will go toward strengthening the city’s police force. But although the funds may come as a blessing, they won’t even come close to addressing the city’s $18 billion in liabilities." Continue reading →

Continue ReadingWhite House to Give Detroit $300 Million in Federal Aid

Greece axes vacation bonus for civil workers using computers

"Recession-wracked Greece plans to scrap a perk for its civil servants who enjoy an extra six days of holiday per year — if they use a computer at work. Greece’s civil service union, Adedy, said the perk stemmed from a decision in the 1990s to give employees 20 minutes off per day to protect them from eye damage from staring at a computer screen. This was then extended on an annual basis, resulting in six days off per year. Now in its sixth year of recession, Greece has been obliged to adopt austerity measures, including pay and pension cuts that have caused widespread resentment, in return for a massive EU-IMF bailout deal." Continue reading →

Continue ReadingGreece axes vacation bonus for civil workers using computers

Median Household Income Is Flat

"In 2012, median household income in the USA was flat. Adjusted for price inflation, it was down 9% since 1999: the Clinton era. It is where it was in the late 1980s: early Bush I. All this has happened under Keynesianism. The engine of economic development has gone flat for 80% of Americans. According to Keynesian economic theory, none of this should have happened. The federal government is supposed to be able to manage the economy, so that recessions are short and mild. But that theory was blasted by the recession of 2008-9. The recovery has not done anything for the vast majority of Americans." Continue reading →

Continue ReadingMedian Household Income Is Flat