In other words, the government is still lying, or at the very least being disingenuine. Witness:
This is a quarterly forecast: in Q1 the unemployment rate was higher than the “more adverse” scenario. For Q2, April is already higher than the “more adverse” scenario, and will probably rise further in May and June.
Click on the link if you’d like to see the charts in question. The long and short of it is that the “optimistic” stress test scenario is wildly optimistic and was basically proved drastically wrong before the stress test was even started (and the optimistic goals we the previous worse-case-scenario before revisions were made attempt to adjust to changing economic conditions) and the new worst-case scenario as envisioned by the .Gov is still too optimistic for the real world. The government sees unemployment levelling off at 10.4% in the worst case, 8.7% in the best case – and this is at the end of NEXT year, not this one. Well, guess fucking what? We’ve already beat the roses and dinner targets.
The problem is, we’ve lost 6 million jobs since the start of the recession (depression?) and it’s showing no sign of slowing down. Why? Because those 6 million people are buying less crap, and buying crap (i.e. non-necessities) is what fuel our economy. When people return to only the necessities, the economy deflates, and that has a snowball effect because if they’re not buying crap they’re not creating jobs to make/import/sell that crap.
And you know what? It IS crap. Worthless shit no one needs, just wants because they have extra money so why not buy some junk to play with for a day before tossing it in the pile in the garage to eventually go to the landfill.
By the way, the current market system set up in the US is not a capitalism system. It’s a creditalism system. With fractional reserve lending, we create money out of thin air, thus devaluing it. If a bank takes in one dollar and lends out 5 or 10, that 5 or 10 dollars quickly becomes worth less than it was before, because people are willing to pay more because they “have” more, especially if the interest is small. And thus you saw the housing price bubble created. And the very same mechanism made it pop – once people started defaulting, the fact that banks had lend out 5 bucks for every dollar they actually had turned out to be a problem, because now that 5 bucks turned into no bucks, or less than one buck, and they don’t have your money to give you anymore. To the taxpayermobile!
Tags: banks lie, corporations lie, depression 2.0, government lies