New Normal: Bankrupt nation. Deflation. Zeros. Junk. No jobs. Depression

[marmar]

By Paul B. Farrell, MarketWatch


ARROYO GRANDE, Calif. (MarketWatch) -- Yes, it's going to get worse, a whole lot worse ... Bill Gross warns this is the "New Normal. Forget 10% returns. Think 5%". ... Economist Larry Kotlikoff, author of The Coming Generational Storm, warns: "Let's get real. The U.S. is bankrupt. Neither spending nor taxing will help the country pay its bills" ... Economist Peter Morici warns: "Unemployment is stuck near 10%. Deflation coming. Stock market threatens collapse. The Federal Reserve and Barack Obama are out of bullets. Near zero federal funds rates, central bank purchases, a $1.6 trillion deficit have failed to revive the economy." ... Simon Johnson, co-author of 13 Bankers, warns: "We came close to another Great Depression, next time we may not be so lucky." Why? Because Wall Street's already well into the next bubble/bust cycle -- the "doom cycle."

Warning: More bad news ahead. Welcome to a bleak second half 2010, worse for 2011.

It's early morning: In comes economist Gary Shilling's new Insight newsletter, just before I head for the kitchen to make my wife's breakfast. Gary's "Mid-Course Checkup" doesn't raise my spirits. Sure, he's got bragging rights. His January forecasts are still on the money. But don't you just hate guys like him? Brilliant. Honest. Great track record. I guess that's why he's been a long-time Forbes columnist. Investors listen when he talks.

After cooking her breakfast I'm flipping through the L.A. Times' entertainment section, avoiding the business and financial pages. Didn't want to spoil my breakfast too. Suddenly, big headline stops me: "Buy, Sell, Hope." Hope? What's that? Good news about markets? You buy, you sell, you hope? Is "hope" America's last market strategy?

No, "Buy Sell Hope" was a grabber headline. A story about moviemakers buying film rights of bestsellers hoping to sell lots of movie tickets to millions who bought the book. Doesn't always work. A metaphor: Economic theories often fail. The focus: Julie Roberts's new film "Eat Pray Love," based on Elizabeth Gilbert's 8 million copy bestseller, a book filled with New Age advice rivaling the best of Eckhart Tolle and Deepak Chopra. .............(more)

The complete piece is at: http://www.marketwatch.com/story/its-going-to-get-worse-a-whole-lot-worse-2010-08-17

[SpiralHawk]

1. "Visualize prosperity." - Deep Ack

"That will be $1,000 for my sage advice. Credit cards or cash only. Thank you very much for your generous donation to my prosperity. Smirk."

- Deep Ack

[ixion]

4. heh...'Deep Ack'

[Poboy]

2. k&r

[CountAllVotes]

3. Bill Gross warns this is the "New Normal. Forget 10% returns. Think 5%"

Think 5% Bill Gross (the head of PIMCO who sells loaded bond funds - 3.75% to "buy in" to one of their investments).

I guess everyone should invest with PIM(p)CO right away in order to grab up that 5%. Whoops - it won't be 5% after paying that 3.75% front end load and their "management fees" that are about 1%+ on these funds.

Hmph is all I can say except RAISE THE FUCKING RATES BERNANKE! A lot of people (MOST PEOPLE) don't care to "invest" in the stock market, especially now.

:kick: for the pigs on Wall Street ... :puke: