01 October 2012

Death Spiral

They just won't listen. Mainstream pundits, and capitalists alike, have decided "Weakening demand is forcing new and accelerated cost reductions at companies from Bank of America and Hewlett-Packard to Staples and Eastman KodakCo, dimming the outlook for an already struggling U.S. labor market." That's what greeted my on the Yahoo! Finance Home Page, the link to a Bloomberg story.

The .1% keep slicing off filets of the Golden Goose (aka, middle class), and wondering why it keeps getting smaller. These are The Smartest Guys in the Room?? I doubt he was the first to say it, in one form or another, but the au courant expression of reality comes from Krugman: "my spending is your income, and your spending is my income" (from here, and others). The only ones, of course, who benefit from deflation, induced by unemployment and recession/depression, are the .1% holding moolah. They get (I can't bring myself to type 'earn') truly 'risk free' return on that moolah. Talk about lazy welfare queens.

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