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Sunday, March 10, 2013

Economic Stories of Relevance in Today's World -- March 10, 2013

Economics that Idiots even ought to understand...

Corporate Profits after taxes at all time high

Meanwhile, wages as a percentage of GDP at an all time low... 

Civilian Employment to Population Ratio... 

M1 Money Supply (leads to inflation - money chasing Goods)...

Household Debt

The Last Time The Dow Was Here... - Zero Hedge - Tyler Durden - March 5, 2013 -
  • Dow Jones Industrial Average: Then 14164.5; Now 14164.5
  • Regular Gas Price: Then $2.75; Now $3.73
  • GDP Growth: Then +2.5%; Now +1.6%
  • Americans Unemployed (in Labor Force): Then 6.7 million; Now 13.2 million
  • Americans On Food Stamps: Then 26.9 million; Now 47.69 million
  • Size of Fed's Balance Sheet: Then $0.89 trillion; Now $3.01 trillion
  • US Debt as a Percentage of GDP: Then ~38%; Now 74.2%
  • US Deficit (LTM): Then $97 billion; Now $975.6 billion
  • Total US Debt Oustanding: Then $9.008 trillion; Now $16.43 trillion
  • US Household Debt: Then $13.5 trillion; Now 12.87 trillion
  • Labor Force Particpation Rate: Then 65.8%; Now 63.6%
  • Consumer Confidence: Then 99.5; Now 69.6

The American Middle Class Under Stress - Sherle R. Schwenninger and Samuel Sherraden - New America Foundation - PDF

The Recession's Toll: How Middle Class Wealth Collapsed to a 40-Year Low
- The Atlantic - Jordan Weissmann - December 4, 2012 -  I'm about to share a statistic that you should remember every time you think about the Great Recession, and why the recovery has been so painstaking. It's going to illustrate precisely how devastating the downturn was for your typical American family and the size of the hole we've been trying to dig ourselves out of.                     Ready? Here goes: Between 2007 and 2010, the median net worth of U.S. households fell by 47 percent, reaching its lowest level in more than forty years, adjusted for inflation. In other words, middle class wealth virtually evaporated in this country. A good chunk of the population got sucked through a financial wormhole back to the sixties.

There were two big reasons why the middle class suffered disproportionately. First, the economic crisis was first and foremost a housing crisis, and homes are by far the biggest store of wealth for most middle-class Americans (who are shown in green below). In fact, even after the housing crash, home equity still made up 66.6 percent of middle class assets -- higher than in the late 1990s. 

Because the wealthy were never as deeply in hock as the middle class, their finances didn't suffer as much when the economy soured....

The difference between this Media Source and the Kool-Aid Media

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