On The Brink Economics

The United States economy is facing a slow recovery according to the Federal Reserve and finally the financial press is paying attention to fiscal issues. The fundamentals of the economy were never strong to begin with due to the capital and investment crisis that took place in the United States in 2008. The real-estate market is down to pre-2002 lows.

The shadow banking is beginning to unravel, some analysts recently have said we are entering a Great(x2) Depression. Banks, Regulators and Independent self-regulating Agencies have been inattentive to and in some cases contributed to the $600 Trillion shadow banking market. U.S Financial regulators and agencies have only instituted piece-meal reforms and many banks are still sitting on losses.

Banks and US government always stress the importance of ownership. But, within the last 10 years property rights have been eroded and the public is paying for speculation. As more commercial and home real estate goes into foreclosure we can expect larger loss of "private property". This is similar to the austerity crisis that has already hit Greece and Spain forcing public assets to be privatized at very low cost.

We can expect further weakness is the market due to the real estate crisis further unwinding and unemployment, real data is already at 22%, accelerate. The economic situation is getting worse due constant outsourcing of high paying jobs.