Quote:
Originally Posted by peter12
It all makes sense. Very clear sense. This so-called recovery is driven by gauzy employment numbers, increasing costs of living, high spending driven by low interest rates, and the virtual disappearance of the lower middle class.
We are seeing something new that is not explainable by traditional economic models. There is no business cycle anymore. Increasing technological returns have changed everything.
As for my previous comment, it would be a good idea for middle earners to stop spending so much money, and start putting as many assets into investments. That is the only reliable source of stability in this economy. The labour market sucks, and I don't see that changing for a long time.
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"Gauzy" employment numbers? The methodology for calculating these numbers is the same as before the recession, and the trend is very good. Yes wage growth is a problem, but inflation is also well under control. You are trying find the cloud inside the silver lining, and you are welcome to, but it's not bourne out by the facts.
Oh, and the weekly jobless claims as a percentage of the working population is now at the lowest level in more than 50 years!
http://www.bloomberg.com/news/videos...-they-re-great