Thursday, 5 November 2009

Bankruptcy Filings to Match Divorce Filings in 2009: 1.5 Million. 35.8 Million Americans on Food Stamps - 11 Percent of the Population. The 5 Indicato

It is a sobering fact that in 2009, there will be as many people filing for bankruptcy as those filing for a divorce. We are on track to seeing an average of nearly 5,900 bankruptcy filings a day for 2009. While some people use the stock market as their barometer of economic recovery, there are a few other “misery” indicators that show things are still bad for millions of Americans and counter the recovery talks. If you want to track a broader recovery, I would recommend people examine the five indicators of the misery index. Food stamps, bankruptcies, long-term unemployed, foreclosures, and credit card defaults are probably your best gauges to the real economic recovery.

The problem we currently face is even after the global economy was brought to its knees by the current Wall Street banking structure, things still haven’t changed at the core of their mission. The same banks are back taking inordinate amounts of risk with the now explicit backing of the U.S. Taxpayer. It is no surprise then that our
U.S. dollar has been pummeled by the policies of the Federal Reserve and U.S. Treasury.

The fundamentals of the US economy have rested on the US consumer. Seeing as the population is plunging into poverty, I would brace for further shocks to the stock market as reality rears its ugly head. The talk about a "recovery" is a farce.

[Posted at the SpookyWeather blog, November 5th, 2009.]

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