Any reader who has been with FMMF for more than a matter of weeks will see these words parallel much of what we have been saying.
- Former Federal Reserve Chairman Akan Greenspan said the slowing economic recovery in the U.S. feels like a “quasi-recession” and the economy might contract again if home prices decline.
Bravo for these next words; it's a recovery of the large multinational business and well off individual* (which increasingly is dominating consumption as the middle class is drowned); small business can be damned as they don't have a lobbyist arm that matters. Hence little say in government handouts. Even the investment banks say so in hushed whispers of their research reports [Sep 7, 2009: Citigroup 2006 - America, A Modern Day Plutonomy]
In a "plutonomy", according to Citigroup global strategist Ajay Kapur, economic growth is powered by and largely consumed by the wealthy few.
*ex public sector, which has thus far been largely immune. [Sep 8, 2009: The True "Middle Class"]
- “Our problem basically is that we have a very distorted economy,” Greenspan said. Any recovery has mostly been limited to large banks, large businesses and “high-income individuals who have just had $800 billion added to their 401(k)s, and are spending it and are carrying what consumption there is.”
- “The rest of the economy, small business, small banks, and a very significant amount of the labor force, which is in tragic unemployment, long term unemployment -- that is pulling the economy apart,” Greenspan said.
The legacy of a few decades of 'trickle
As for those green shoots?
- “There’s nothing out there that I can see which will alter the trend or the level of unemployment,” Greenspan said.
[Aug 14, 2009: No New Normal Say Some Economists, Prosperity Without Jobs?]