Warren Buffett doesn’t think we’re headed for a recession…
Even economists don’t think we’re headed for one…
But these are some of the same guys that had us believe the same thing in 2008 – six months after it had already begun.
Ask any one with half a brain, though, and he’ll tell you we’re already there.
The average American is facing some of the worst economic headwinds in history. And while things will eventually improve down the road, things are expected to get worse… much worse.
“The US economy is indeed tipping into a new recession. There’s nothing that policy makers can do to head it off,” says the Economic Cycle Research Institute.
“It’s too soon to predict just how bad it’s going to get,” says the ECRI. But they expect “another spike in unemployment and further expansion of the federal government’s $1 trillion deficit. This forecast has huge ramifications for the 2012 election and the already struggling U.S. consumer…”
But that shouldn’t be a surprise…
And it could mean that QE3 isn’t out of the question.
Why We’re Right — AGAIN
It was 2010 when the White House told us all was well. “We’re in a continued recovery that just ‘won’t feel terrific’,” said Helicopter Ben.
But it wasn’t really true — and Bernanke knew that, doing nothing more than kicking the can down the road.
Alas, he’s run out of road…
Now we’re falling off a cliff.
Hiring is weak. Consumers aren’t happy (as seen in confidence numbers) and debt is rocketing as jobs are lost. Housing is still crumbling. Jobs creation is circling the drain.
Europe is teetering on the brink of insanity. The global banking system has trillions of exposure to Greek, Irish, Spanish and Italian debt. China’s economy is slowing.
The “recovery” we were promised in the second half of this very year looks to be nothing more than a pipe dream…
Is Anybody Listening?
Yet, economists aren’t concerned.
But these economists are salesmen, much like the real estate agents who are saying “now” is a good time to buy — regardless of when “now” is — and if you don’t buy now, you’ll be priced out forever because, say Barron’s experts, the S&P 500 could rally 11% higher from here!
Perhaps it’s this very belief in the financial community that would explain how the market can rally 10% in two weeks’ time when there is no positive news to justify such a move…
Even Goldman and Dr. Doom are Afraid
By Goldman’s doomsday accounts in their “secret” 54-page report (only meant for institutional eyes), European banks need $1 trillion of capital. China’s growth is not sustainable. And solving a debt problem (ours) with more debt doesn’t work.
Think about that.
A top Goldman analyst is telling clients that “solving a debt problem with more debt has not solved the underlying problem. In the U.S., Treasury debt growth financed the U.S. consumer, but has not had enough of an impact on job growth. Can the U.S. continue to depreciate the world’s base currency?”
That’s some scary stuff.
We really are headed for an economic meltdown — and that’s because U.S. debt is not sustainable. The only reason we haven’t collapsed yet is because of this debt-fueled fantasy we’ve been living.
Fact is, the crash is coming. But there is a way to profit.
