It’s Official: The Consumer (And The Economy) Is Alive and Dead
by Wolf Richter • • Comments Off on It’s Official: The Consumer (And The Economy) Is Alive and Dead
Friday’s plunge in consumer sentiment was hastily ascribed to the Fiscal Cliff. Like Sandy, it’s recruited to explain everything that goes wrong. But over the last few days, one monkey wrench after another has been thrown into the hope machinery, including the collapse of small-business hiring plans to the record low set during the catastrophic post-Lehman days.
The Majestic US Debt, Visualized, Animated, With Rousing Music
by Wolf Richter • • 2 Comments
The staged posturing with its tragic-funny theatrics and lurid special effects in Washington about the Fiscal Cliff—and whether to fall off, jump off, fly off, dive off, climb down, or somehow avoid it altogether—has become an inescapable media reality, much like Y2K once was. I remember well the worldwide letdown on January 1, 2000.
The Alarming “Sense Of Pauperization” in France
by Wolf Richter • • 8 Comments
In France, 48% of the people considered themselves either living in poverty or on the way to living in poverty. The sobering survey results were released just ahead of the National Conference of the Fight against Poverty. A big conference, packed with top politicians. The government is taking it seriously. They will be looking for Band-Aids to cover the deep wounds of the private sector that is atrophying and shedding jobs.
Making Heroes of Those Who Slash Jobs
by Wolf Richter • • 3 Comments
Especially of CEOs who parachute into the executive office. Wall Street’s knee-jerk reaction can be phenomenal. Citigroup’s massacre of 11,000 souls caused its stock to jump. But the same day, we learn that wages adjusted for inflation dropped 1.4% in the third quarter—a continuation of 12 years of declines that has hollowed out the middle class, pushed people into the lower classes, and devastated the poor.
Serial Government Defaults In The Eurozone
by Wolf Richter • • 2 Comments
“Private sector” is a rubbery term. Most of the bondholders that lost their shirts during the first Greek default last March, and during the second one currently underway, were banks, including banks in Greece, Spain, and Cyprus. They are now getting bailed out by the public. After nearly all of Greece’s debt was shifted to the public, a third haircut was announced. Now Portugal wants the same deal. The can has been opened.
“Future Generations Have To Deal With The Financial Carnage”
by Wolf Richter • • Comments Off on “Future Generations Have To Deal With The Financial Carnage”
During the off-hours on Sunday, when few people were willing to ruin whatever remained of their weekend and when even astute observers weren’t supposed to pay attention, the National Association of Insurance Commissioners approved new rules that would allow life insurance companies to lower their reserves for future claims—at the worst possible time—having already forgotten all about the financial crisis.
Ten Big Fat Lies To Keep The Euro Dream Alive
by Wolf Richter • • Comments Off on Ten Big Fat Lies To Keep The Euro Dream Alive
Every country in the Eurozone has its own collection of big fat lies that politicians and eurocrats have served up in order to make the euro and subsequent bailouts or austerity measures less unappetizing. Like in 1999: “Can Germany be held liable for the debts of other countries? A very clear No!” said the CDU, the party of Chancellor Angela Merkel.
The Relentless Eurocratic Power Grab
by Wolf Richter • • 5 Comments
“The euro has profound economic advantages and is the most powerful symbol of European integration,” said not some wild-eyed dude with a joint between his lips, slouching in a café in Amsterdam, but the “Final Report” by the Future of Europe Group, composed of 11 European foreign ministers. It remains uncertain what they were smoking.
Nationalizations Take Off In France
by Wolf Richter • • 12 Comments
Privatizing state-owned companies has been all the rage in France since the mid-nineties, by socialist and conservative governments alike. But the morass in the private sector has stopped that. Now nationalization is being brandished as a solution—again—though the state still owns a big chunk of the private sector. The dominoes are lined up. Last week it was ArcelorMittal. Today it’s one of the world’s largest shipyards.