Ten Signs The Double-Dip Recession Has Begun

[lunatica]

The article has an expanded explanation for each of these issues:

http://247wallst.com/2011/07/29/ten-signs-the-double-dip-recession-has-begun/

1. Inflation - materials cost more so products made from them cost more

2. Investments have begun to yield less - Stock market made a comeback but is stumbling in the last quarter.

3. The auto industry - made a good comeback but is falling now (gas prices, Japanese not able to manufacture parts after earthquake

4. Oil prices - over $100 a barrel affect the gas prices

5. The federal budget - there will be no economic stimulus package and GDP growth slows. Austerity measures will make local governments cut 450,000 jobs this year and next.

6. China Economy Slows - the demand for goods and services by its very large and growing middle class drops. Chinese purchaser manufacturing and export numbers have fallen as the central government has tightened the ability to borrow money

7. Unemployment - It's persistent

8. Debt Ceiling - This one is against raising taxes - trickle down crap.

9. Access To Credit - banks aren't lending to small businesses and to people because they don't have the cash reserves that big corporations do. Corporations get very low interest rates while small businesses and people don't.

10. Housing - home values are still dropping so no one is buying

[eleny]

1. I'm waiting for the Chinese to take to their streets

There have been some demonstrations. But when Americans drill more holes in their belts to tighten them even further who will buy the massive amount of goods they're making over there? Europeans? Africans? I doubt anyone can make up the shortage of buyers that we represent.

Hubby and I are doing okay. So when I don't buy a new pair of blue jeans in over a year, something is definitely up. I'm even refashioning old drapes to make new window coverings where I need them. Oh boy.

[RKP5637]

2. Yep, all of the interdependencies are taking one another downward. IMO it's going to

take years to get an even keel. I also think far more could be done by the gov. to create jobs in this crisis. They need to go back and look at what FDR did.

[Igel]

10. Yeah. CCC all the way.

Maybe they can reconstitute the CCC and hire people to plant kudzu in the NW like they did in the South in the '30s.

Many of the biggest projects involved work camps, usually not in the cities, to do manual labor. In the '30s, not a big deal. More small-town folk, most men were the breadwinners anyway, the skill labor wasn't all that high for the most part, and the parts of the country most affected were urban or midwest/great plains. If you were rural and elsewhere it wasn't that big a deal--you could survive.

Now if you made most of the work manual labor in the country, given demographics, you'd replicate the proposal from Georgia that unemployed urban poor be bused out to the country to harvest fruit. That would show a "disproportionate racial impact," I'm afraid. In many states it would be mostly minorities trucked out of the cities. If it's agricultural labor that they're doing, they'd be competing with a lot of illegal immigrants.

And I can just imagine the unemployed seniors I had last spread being told that they can have a job, but they'd have to get on a bus, go 50 miles out of town, and clear brush. The text messages they'd send--that's if they heard what you said over the roar of their neighbor's iPod.

And let's not forget that OSHA wasn't around. Most of the WPA projects wouldn't have met OSHA standards. Unions would also be pissed. (My grade school was a WPA project.)

[RKP5637]

11. I would use this to rebuild the infrastructure, as one example. To pump large amounts of

cash into rebuilding the infrastructure which in many cases could use existing corporate structures. There are many innovative things that could be done utilizing the methodology, but not the same type of jobs.

The method of job creation in this country is obsolete, it's roots are in a haphazard approach, this needs to be rethought for the 21st century.

[LiberalEsto]

3. "Double dip" my ass

We are in a depression, we never came out of the recession, and as far as I'm concerned whoever came up with this ridiculous euphemism can go dive in a dumpster.

[Kennah]

4. Exactly. This is an 80 year depression cycle. Not recurring recessionary cycles. Gonna be years.

[eleny]

5. It's also irritating that they make it sound like a tall ice cream cone

[Warpy]

7. It's only a double dip for people who are concerned with their net worth

expressed by the stock market. That's what's likely to dip. The rest of us will be sitting in the same damn hole we've been sitting in for a decade.

It's not going to get better unless there's a revolution at the polls and the GOP is packed up and sent home. Then there's a little hope for minor fiscal sanity. Even that will be welcomed over gridlock and total insanity.

My own income has been slightly down for the past year and a half as corporations stockpile cash rather than pay dividends.

[XemaSab]

12. I think the thing that's going to keep us in the hole

is partly the fact that everyone's demoralized.

You think throwing out the GOP will solve everything?

We had 2 years with the democrats in office and we got jack shit done.

[RKP5637]

13. I've been more demoralized with the dems. The R's I knew were F'ed up and I expected

the worst. With the dems in I expected far better, but so far it's still a F'en mess.

[kath]

9. Thank you for stating the hard truth!

[RKP5637]

14. +1000 +++ n/t

[lunatica]

6. If emplyment is what drives a healthy economy then

unemployment is what drives it's unhealthiest version, Depression.

This is a no brainer to anyone but a politician.

[Emelina]

8. Double dip? The rich recovered, the poor are worse off than before 2008.

I am really disheartened that the corporate media is ignoring the fact that true unemployment is at least double the so-called official statistics.

[RKP5637]

15. Yep, the effective unemployment rate is about 16%, some say 20%. Lies are

spread all over the place to paint a rosy picture. Most of the media we get in the US is garbage, absolute garbage. RT and AJZ provide more factual reporting. MSM tries to stop them from reporting. We live in probably the most propagandized country and sadly many Americans don't take the time to look for what is really occurring. Americans today are bred to be part of the herd, a herd of lambs and Lemmings.

I posted this in another DU thread:

Two major mistakes in this country by "we the people" IMO. First: Thinking that

those in power give a fuck about the majority of people. Sure, some do, but when you look at them collectively. Second: Thinking the elected government runs this country. 400 people own about 50% of the wealth of this country. About 20% of the country owns 80% of the wealth. The rest of the country, 20%, shares what fell of the plate, the crumbs.

Money runs the US, holds the power and runs the gov., and owns most of the congressmen and the WH. People really need to wake up to what is going on. If you strip away the civil and social issues, A=B IMO.