The Party’s Over, The Bubble Has Burst, Let’s clean Up The Mess

The Party’s over for America, the greed bubble fueled by excessive debt has finally burst. Its time to clean up the mess started by the Bush/Cheney administration, perpetuated by the Obama/Biden administration and which is now a deserted ballroom ~ strewn with broken dreams, broken promises and economic devastation.

As 2011 crawls to a close, the true reckoning of the financial devastation wrought by the policies of the Clinton and Bush administrations and perpetuated by the Obama administration have yet to be fully revealed ~ but the economic devastation by these political actions and inaction is now fully felt and experienced by millions of Americans.

Nobel laureate Joseph E. Stiglitz, Vanity Fair, brilliantly summarized this devastation on December 25, 2011 ~ “It has now been almost five years since the bursting of the housing bubble, and four years since the onset of the recession. There are 6.6 million fewer jobs in the United States than there were four years ago. Some 23 million Americans who would like to work full-time cannot get a job. Almost half of those who are unemployed have been unemployed long-term. Wages are falling-the real income of a typical American household is now below the level it was in 1997... The Bush and Obama administrations justified a bailout on the grounds that only if the banks were handed money without limit-and without conditions-could the economy recover….The banks got their bailout. Some of the money went to bonuses. Little of it went to lending. And the economy didn’t really recover ~ output is barely greater than it was before the crisis, and the job situation is bleak. The diagnosis of our condition and the prescription that followed from it were incorrect … In the end, bank managers looked out for themselves and did what they are accustomed to doing..“ Read full article ~

Stiglitz correctly makes this important point ~ “The fact is the economy in the years before the current crisis was fundamentally weak, with the bubble, and the unsustainable consumption to which it gave rise, acting as life support. Without these, unemployment would have been high. It was absurd to think that fixing the banking system could by itself restore the economy to health. Bringing the economy back to “where it was” does nothing to address the underlying problems.”