Great peice from EURO PACIFIC CAPITAL's Charles Hugh Smith
The disconnect between the reality of a disintegrating economy propped up solely by unprecedented Federal borrowing, spending, subsidies, giveaways, swag, guarantees, secret intervention in the markets, Fed purchase of Treasury bonds, Fed purchases of toxic-trash mortgage-backed securities, etc. etc. and the market's euphoria about the "recovery" could not be sharper.
Beneath the "happy story" propaganda about the "recovery":
1.employment is still falling
2.credit/lending is still declining
3.sales and income taxes are still in free-fall
4.commercial real estate is about to crash The Gathering Storm in Commercial Real Estate (CRE) (October 21, 2009)
5.the residential housing market is totally dependent on Federal support of the mortgage market and tax-credit giveaways: The Final Demise of A Speculative Housing Bubble (September 16, 2009)
These are just the highlights of a deteriorating economy propped up by unsustainable Federal stimulus and interventions.
Hope you have saved for that rainy day, cause it looks like we may get soaked.
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