Sunday, August 14, 2011

The Invisible Depression

The news media doesn't hammer home the point that depression is stalking the land. Instead the repeat the positive spin coming out of Washington about "recovery, a weak recovery, but still a recovering economy".

The reality is that like the 1930s, a storm of bank failures keeps sweeping the land:

Click to Enlarge

Like a an alcoholic or a drug addict, the first step to recovery is honesty. You have to admit that you have a problem. But Washington politicians pretend that "recovery" is hunky dory when in fact it isn't. Banks continue to fail. Credit has contracted and never eased since 2008 so small businesses have no line of credit even if they have customers and want to expand. The Washington politicians have completely botched the situation, just like they did in the 1930s. Sadly, the Tea Party fanatics are feeding the egos and the fear of the Washington politicians thereby making it even less likely that sensible policies will come out of Washington.

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