Random Feed wrote an interesting post today on
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California may now have one of the distinct misfortunes of enjoying a lost decade of job growth. This not only applies to the battered economy of California , but to the nation as well. To put the magnitude of the current recession in perspective, the only other time in economic history to see a contraction wipe out a decade long expansion of job gains was during the Great Depression. Yet somehow in the midst of all these job losses the S&P 500 is now up 56 percent from the low reached

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Random Feed wrote an interesting post today on
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The financial system has effectively melted down. The wholesale credit system (securitization) is frozen, the banking system is dysfunctional and insolvent, and consumer spending has tanked. The Fed’s multi-trillion dollar lending facilities and monetary stimulus have kept the financial system from grinding to a halt, but the underlying problems still persist. Fed chairman Ben Bernanke has chosen to avoid the hard decisions and keep the price of toxic assets artificially high with the help of a

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Random Feed wrote an interesting post today on
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By: Mike Whitney Jul 04, 2009 There’s a big difference between inventory-driven recessions and credit-driven recessions. An inventory recession is caused by a mismatch between supply and demand. It’s the result of overcapacity and under-utilization which can only work itself out over time as inventories are pared back and demand builds. Credit-driven recessions are a different story altogether. They typically last twice as long as and can precipitate financial crises. The current recession i

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Random Feed wrote an interesting post today on
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By MICHAEL HUDSON May 11, 2009Last month the G-20 authorized the International Monetary Fund to increase its loan resources to $1 trillion. It’s not hard to see why. Weakening currencies in the post-Soviet states threaten to raise default rates on foreign-currency mortgages as collapse of the Baltic real estate bubble drags down Swedish banks, while the Hunga

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Random Feed wrote an interesting post today on
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Most people have a difficult time conceptualizing the magnitude of the housing problem. I hesitate to call it a housing problem since we do have homes, plenty of them actually. At the root of it all is we have an affordable housing issue. The bubble simply exaggerated the problem where it became too large to manage. Folks keep hearing about companies losing billions and bailouts reaching into the trillions. Some choose to ignore the crisis and some wallow in it too much causing psychologica

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