Bullshit just like we knew it was. The same goes for the continuing lies ever since, Green Shoots and all that happy horse shit.
Anyone with two functioning synapses to rub together will tell you this country has been in a Depression ever since and now we are going to really get slammed according to the Vampire Squid of Everything Financial.
Remember the 2008 financial crisis? Well, it's back.
The financial disaster, which started seven years ago with the US real estate and investment banking collapse, has entered its third phase according to a team of Goldman Sachs analysts.
This wave is characterised by rock bottom commodities prices, stalling growth in China and other emerging markets economies and low global inflation, Goldman Sachs analysts led by Peter Oppenheimer said in a big-picture note.
This triple-whammy has its roots in the response to the first two waves of crisis — the banking collapse and European sovereign debt crisis — and its all part of the so-called debt supercycle of the last few decades.
Central banks all rushed to lower interest rates in response to the first two debt-fueled crises, encouraging investors to lend in emerging markets such as China for a decent return.
Now that interest rates are looking like they might go up, lenders are heading for the exits and investors are pulling out of commodities, which are closely linked to the fate of the emerging economies.
That's what links the EM (emerging market) wave to the first wave. As the US housing market collapsed, low interest rates "helped fuel credit growth and increased leverage, particularly in China," according to the note. Combine that with China's attempt to transform itself and escape the middle-income trap, and the plunge in global commodity prices, and you have a new crisis.
The problem is that the different stages of the crisis keep interacting with each other, stalling the recovery. Just as the EU sovereign debt crisis derailed the US economic recovery in 2010 and 2011, so the emerging markets collapse hit the EU, just at at the wrong time.
My bold. there.
It's been a double decker shit sandwich since this disaster started.
BTW, I remember seeing the crisis coming down the pipe in late 2007.
So now they are coming out and admitting things never really got better and are about to get even worse, yet again.
Remember Too Big To Fail?
Those same people are still running the show while the Fed sits and spins on it's thumb, printing money as fast as the ink can dry, pissing into the wind and trying to avoid the inevitable.
The fact that no one really went to jail over this out of control World Wide economic suicide pact between all these bankers just goes to show how corrupt our own government is.
I would present former Attorney General Eric Holder as exhibit A in that evidence discovery investigation.
He refused to prosecute any of those bankers because the minute he walked away as Attorney General, he re joined them as that is where he came from in the first place.
China gave everyone a good scare late this last Summer and the financial watch dogs have been predicting really bad things were going to happen in the Third Quarter, which is exactly where we are right this minute.
All these bad things coming are not going to happen all at once but when it does start in earnest then you can expect it to go bad very deeply and for a long fucking time.
The entire World Economy is going to take a nasty hit again just like in 2008.
This time though, the Fed is out of rabbits to pull out of it's ass.
There will be no "Fix" for this one. It is going to have to run it's course. something that should have been allowed to happen back in 2008 instead of us bailing those bankers out. The market should have been allowed to correct it's self but they couldn't pass up the opportunity to let the American public pay off their bad gambling debts so they could start in anew.
This time the shit is going to hit the fan.
Hopefully there will be quite a few less bankers around when the dust finally settles.
The rest of us will be well and truly fucked though.
I would recommend people start studying the survival methods our Grand Parents used to get through The Great Depression because this new crisis is going to be a different flavor than the first part.
The foreclosure rate just spiked again the other day in certain states that have more restrictive laws on the books that slow the process down as those impediments finally ran their course.
Some of those foreclosures had been in the works for years. That was from the first wave of this crisis,the one that started seven years ago and is still raging.
So the next time you see some government lackey trying to spin the economic outlook just point and laugh because anything they say to the contrary about how truly fucked our economy is about to get is an outright lie.
I'm having a hard time believing that their propaganda is going to do them much good when what is going on in the world is going to be as plain as the nose on your face.