Friday, June 27, 2008
Panic on the streets of the US
I wonder to myself
Could life ever be sane again ?
Is the US headed for Argentinian levels of depression?
I say yes. The middle class is the engine that runs an economy, because if there are large numbers of people with coins jiggling in their pocket, there will be large numbers of people purchasing stuff; large numbers of people making the stuff that the others are purchasing, the spiral revolves up.
Since the 1940's, the US has had a thriving middle class. But since, and I have a date for this, since Reagan was elected, the middle class has been diminishing--all those national tax cuts (and corresponding national debt) actually served the purpose of impoverishing the middle class, by cutting services and infrastructure that we all use and need, while greatly enriching the already rich.
Our cliches are coming home to roost. We have a negative savings rate, and the access to credit for the average bank, let alone the average soul, has disappeared.
Here's the gini index, (I love this graph) showing the increasing income disparity in the US. Among the first world, we're an outlier; the two countries above us (with worse income disparity, Mexico and Brazil are both well known for their poverty, slums, violence. Is this our future?
Oh, and hang the DJ, just 'cause.
Same song, only with noose instead of schoolboy, because just one Moz is never enough.
What? Depressed? Listen to this. It's Judee Sill; "The kiss." One of the most tragically underrated songs of the last 35 years. Really. It's off the album "Heart Food," which was rereleased a couple of year ago, hint hint. She, as far I personally know, is the only entry in the "Bach Pop" category of musical styles, and don't give me any of that Pocol Harum crap.
One more.... Live Smiths Madrid 1985 How soon is now? Sound sucks, Cinematographer should be shot; yet, sublime. Watch. Immediately. Only Been up since April. Random cAps AddS importanCe. duH.
Oh, and seeing as how this the post that never ends, JP Morgan has 79 Billion dollars worth of Derivatives balanced by 1.2 billion dollars in assets. Wow. Thanks to Covey at calculatedrisk.blogspot.com for the link.