This is not the sort of behavior seen in an economic expansion.
Meanwhile, in other news, Denninger reports that Medicare will be out of money in as little as 38 months.
And also this:
"Blinder on CNBC just pointed out the obvious -- if you stop the deficit spending (because you refuse to raise the debt ceiling) GDP contracts on a dollar for dollar basis, which is about 6% -- instantly.
This of course means that GDP is overstated by that very same 6% compared against actual private demand, and what's worse is that it's perpetually being overstated.
This is an exponential function which is why our debt is expanding at an ever-increasing rate.
We can't keep doing that forever. Everyone admits that. But the longer we keep doing it the more it's going to suck when we stop doing it.
And this means you must stop doing it now, because tomorrow it will be worse, and the day after that even more so, and on and on and on."
GDP overstated by six percent! That is what it feels like out there in the wild, although I thought that that was just because I lived in California, where it's even worse! No wonder folks are forced to spend their retirement just to stay even.
The question is, "what do we have to do to start the healing process, and break out of this insane, debt fueled false economy?"
Maybe we could start with this: