WE NEED YOUR HELP!
Please donate to keep ReaderRant online to serve political discussion and its members. (Blue Ridge Photography pays the bills for RR).
Because working people are underwater on their mortgages, maxed out on their credit cards, and overdue on their bills. There's no reason to build more capacity when consumers are struggling just to stay afloat. But that creates a big problem for the economy, because new investment is crucial to keeping things running smoothly....
Consumers and households are still deleveraging, housing prices are falling and unemployment is stuck at 9 percent with 16.5 percent underemployed. Private sector debt is still at historic levels and will have to come down further. If that process is not eased by increasing the government's budget deficits, then economy will shrink even more and lapse back into recession.
Capitalism is between a rock and a hard place just as much as it was during the Great Depression.
Much better to see the assets of the Super-Rich go up in flames, rather than see the rest of us go down in flames.
