[Homestead] Are we watching the fall over the precipice?

Don Bowen don.bowen at earthlink.net
Fri Jun 6 15:13:56 EDT 2008


I keep an eye on economic happenings and with my studies have begun to understand some of what was called Political Philosophy or later "The dismal science."  Economics is a mixture of social science, philosophy, and politics and as such is a game that very few can ever hope to understand. 

As for the current economic problems, I have watched and studied in morbid fascination as we have moved ourselves from a nation that builds things to a nation that just does things.  The big money earners are no longer the captains of industry that used federal money along with lack of oversight and regulation to amass great fortunes while inventing new methods for building railroads, steel and oil empires, and the like.  The big money earners are now the people who can use federal money and lack of oversight and regulation to invent new methods to move money around while collecting huge fees.  

The current economic condition is a result of that manipulation coupled with some real limits to resources.  I have somewhat expected that the movers of money would manage to keep the federal monies flowing and keep the huge bonuses and the house in the Hamptons and the one in Vail.  For me the place to watch is unemployment.  Even if as Kevin Phillips points out, the numbers are manipulated away from any real connection to reality, it is still an important metric.  Well, today the unemployment shoe dropped.  It is no longer possible to hide the layoffs as airlines and car companies incomes fall as oil prices climb.  The housing layoffs were easy to hide as most were independent contractors or illegals paid under the table.

As a result of today's report of unemployment jumping to 5.5% (some feel we should double those numbers) and reports of Israel wanting to bomb Iran the stock is falling off a precipice with a loss of over 300 points and oil finding new record highs.  Morgan Stanley is predicting $150 oil by July 4 while Goldman Sachs was predicting that price by the end of the year.

Don Bowen      KI6DIU
http://www.braingarage.com/Dons/Travels/journal/Journal.html


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