It won't take that long. The Germans will hurry it along.
REH From: [email protected] [mailto:[email protected]] On Behalf Of D and N Sent: Monday, February 21, 2011 6:21 PM To: RE-DESIGNING WORK, INCOME DISTRIBUTION, EDUCATION Subject: [Futurework] US has 2 economies I think the first economy, rather than being in a state of recovery, is more accurately in a state of unrecognized near-extinction. Tax payers won't bail them out again, and it is with their funds that they resumed gambling. I'd like to say Wall Street's demise is just around the corner, but because they own the government and the media, it will take years more for the realization that an illusion of financial success won't possibly restore the government treasury. Natalia America's two economies: one in recovery, one in depression <http://www.huffingtonpost.com/robert-reich/post_1687_b_818991.html> Robert Reich, Huffington Post - We have two economies. The first is in recovery. The second remains in a continuous depression.The first is a professional, college-educated, high-wage economy centered in New York and Washington, that's living well off of global corporate profits. Corporations continue to make money by selling abroad from their foreign operations while cutting costs (especially labor) here at home. Wall Street is making money by taking the Fed's free money and speculating with it. The richest 10 percent of Americans, holding 90 percent of all financial assets, are riding the wave. And their upscale spending has given high-end retailers and producers a bounce. The second is most of the rest of America, and it's still struggling with a mountain of debt, declining home prices, and job losses. In coming months most Americans will also be contending with sharply rising prices of food and fuel. Our representatives in Washington see and hear mostly the first economy. The business press reports mainly on the first economy. Corporate and Wall Street economists are concerned largely with the first economy. But the second economy will determine our politics in 2012 and beyond. And not even the first can be sustained permanently on its own. Corporate profits cannot continue to rise on the basis of foreign sales (which are slowing as Europe adopts austerity and China raises interest rates), the purchases of the richest 10 percent of Americans (which are dependent on a rising stock market), and cost-cutting measures at home (which are necessarily limited). Without a strong and broadly-based middle-class recovery, America's big money economy will fall in on itself. A major stock market "correction" is a certainty.
_______________________________________________ Futurework mailing list [email protected] https://lists.uwaterloo.ca/mailman/listinfo/futurework
