Many Americans gave up hope last year – 2012 will be worse (Joseph Stiglitz)

[kpete]

Many Americans gave up hope last year – 2012 will be worse
The chance of realising the American dream is receding for millions as jobs are lost, savings run out and houses are repossessed

........

This year is set to be even worse. It is possible, of course, that the United States will solve its political problems and finally adopt the stimulus measures that it needs to bring down unemployment to 6% or 7% (the pre-crisis level of 4% or 5% is too much to hope for). But this is as unlikely as it is that Europe will figure out that austerity alone will not solve its problems. On the contrary, austerity will only exacerbate the economic slowdown. Without growth, the debt crisis – and the euro crisis – will only worsen. And the long crisis that began with the collapse of the housing bubble in 2007 and the subsequent recession will continue.

Moreover, the major emerging-market countries, which steered successfully through the storms of 2008 and 2009, may not cope as well with the problems looming on the horizon. Brazil's growth has already stalled, fuelling anxiety among its neighbours in Latin America.

Meanwhile, long-term problems – including climate change and other environmental threats, and increasing inequality in most countries around the world – have not gone away. Some have grown more severe. For example, high unemployment has depressed wages and increased poverty.

more:
http://www.guardian.co.uk/business/economics-blog/2012/jan/13/many-americans-2012-worse

[xchrom]

1. it's just so damn sad. -- if europe re-enters a bad recession

how can the U.S. avoid it?

and this -- 'finally adopt the stimulus measures that it needs to bring down unemployment to 6% or 7% (the pre-crisis level of 4% or 5% is too much to hope for).'

we're just not doing well.

[sulphurdunn]

2. Financial speculation

has become a parasitic profession. Any successful parasite needs to strike a balance between killing its host and the host becoming healthy enough to reject it. In most cases the host eventually dies and so does the parasite unless it can find a new host. There is no new host for global capitalism to infect.

[DCKit]

3. Well said! nt