I think it is all part of an ongoing depression where we have a series of recessions — punctuated by artificial growth caused by stimulus.
The stimulus is wearing off and the hangover is setting in. The bigger the stimulus, the bigger the hangover. As the economy builds up a tolerance for stimulus, you need more of it.
We’ve had record doses of stimulus and we’ve barely had any kind of phony growth. We are rolling over back into recession where unenemployment is already over 8%. And interest rates are 0%… at the END of the recovery. Imagine starting a recession at levels normally that normally characterize the bottom of a recession. We’ve just had the growth and look where we are.
A lot of people thought the problems were in Europe and that salvation lied in the US and the dollar. Now more people are starting to come to terms with the fact that we are in trouble too. America’s problems are NOT made in Europe. They are one of the few things still made in America. Even though Obama today, in his speech, tried to blame it on Europe.
If people are afraid of the Euro because of all the debt, it makes no sense to buy the Dollar which has even more debt. America has even more debt.
People are focusing on Europe, I’m not saying Europe doesn’t have problems but we’ve got bigger problems. As bad as their’s are, ours are worse.