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.