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Almost Entire U.S. Economy Is In A Bubble
by JASmius
Well, you don't say; you mean the “Obama Recovery” is nothing but an inflated, overstuffed fiction? Really? Say it ain't so, Danny:
Bubbles are brewing everywhere, says consumer advocate Dan Barnabic. And not surprisingly, he warns that many of us may suffer when those bubbles pop.
“The stars seem to be aligned for the bubble to burst within almost all sectors of the economy. This may spell a serious hardship for an average American,” Barnabic writes in an article for MarketWatch.
“Whether it's going to happen later on this year, or in the next three years, isn't a question anymore. The question is, how severe will it be and are Americans going to have enough resources to sustain and recover from it?”
Sectors such as….the stock and real estate markets. Picture the October 1929 stock market crash (a 90% devaluation) combined with the Panic of 2008:
Stocks might be in the third-biggest stock bubble in history, he notes, adding that financial consultant Andrew Smithers of Smithers & Co. estimates stocks are now 80% overvalued.Barnabic calculates that real estate is overvalued by at least 35% and maybe up to 50% in some crowded urban areas.
“If real estate was to crash simultaneously with the stock market, the future doesn't bode well for the North American economy,” he cautions. [emphases added]
It would bode well for Barack Obama's lifetime presidency, though, wouldn't it? Even somebody “in over their head” would be able to exploit a crisis of that magnitude.
Perhaps that's why traditional American optimism has died:
Should we hold a funeral for American optimism?
In its most pessimistic reading ever, a new Wall Street Journal/NBC News poll indicates that most Americans, 76% to be exact, are not sure their children's generation will be better than their own. Less than a quarter (21%) believe their children's generation will lead better lives than their own.
What's more, 71% think the country is on the wrong track, 60% believe the United States is in a state of decline, and 54% say the widening income gap is undermining opportunity.
The pollsters say the survey reveals “a strong undercurrent of pessimism about the economy, the political system and the U.S. role in world affairs.”
Welcome to the “New Normal,” folks. Beats me why it's been almost six years and you're still not acclimated to it. And no, Barack Obama is not being held primarily responsible for it; congressional Republicans are, near as I can tell:
President Obama received his lowest approval rating ever, 40%, in the poll….
Or, in other words, the Left still loves him, while the middle and the Right have long since bailed; or, in still other words, pretty much the status quo going back to early last year. Or, in the final rhetorical incarnation, The One's polling floor, as media protection and his skin color will prevent his numbers from ever plumbing Truman/Bush43 territory, as they deserve to. I don't refer to O's as the “Affirmative Action presidency” for nothing.
….Congressional Republicans received an even worse approval rating, just 19%, while Congressional Democrats had a 31% approval rating.
Which reflects media coverage of House Republicans and Senate Democrats, respectively. Doubtful that it means all that much, since the GOP is currently on course to pick up additional House seats, seven Senate seats and the Senate majority along with it. But it's still requisitely annoying.
After the bubbles burst? Expect the “rally 'round Dear Leader” effect if it happens under Red Barry, and a public crucifixion if it unfolds on a President Walker's or President Perry's watch. Or a beheading, depending upon Abu Bakr Al-Baghdadi's preference on the particular day in question. He'll almost certainly be calling the shots by that time.
But that's another “bubble”.
Source: http://politicalpistachio.blogspot.com/2014/08/almost-entire-us-economy-is-in-bubble.html
