Sunday, May 16, 2010

Extend And Pretend - How Does It End?

Recent economic signs increasingly point to a "double dip", although I have to agree with Robert Reich that most (98%) Americans never got out of the first dip. I think that even the idiots in DC and on Wall St are starting to realize that there is a snowball's chance in hell that the housing market can get back to where it was in 2007 any time in the next year or two. (I'd argue that it will take ten plus years to that, maybe longer if you include inflation.) Plus, it's now obvious that TBTF banks are making "record" profits, but this has done little to nothing to re-starting the economy. (I would make the argument once again, that bailing out the banks is the problem, not the solution since time, after time, after time, all that was done since the Reagan 80's has been to bail out failing Wall St firms rather than letting them go bust - with one notable exception: Lehman Brothers.)

So when does the Obama government decide to end "Extend and Pretend" and actually start to fix the problems with our economy?

Here's my best guess - we're all Katrina victims now. NOLA is the new role model for how our nation will recover. The middle and lower class will get left to fend for themselves, the rich will be protected and coddled by the state. The economy will continue to disintegrate, our country will continue to fracture.