Saturday, September 8, 2012

Exponential Trend Failure of the Day

Click to enlarge.

We couldn't make it to 100%? I'm shocked.

Too bad we couldn't sustain multiple stock market bubbles and a housing market bubble. There was a glimmer of hope that the economy didn't require exponentially increasing government spending (relative to wages) with any of those in place.

August 16, 2012
Current Government Spending Is Not Creating Enough Growth

To come back to today’s stock market, the only reason to be bullish other than as a quick trade, is for you to believe that the Federal Reserve as well as the European Central Bank has some magical ability to turn a financial disaster into rapid economic growth. And then again, maybe the tooth fairy is real.

That exponential trend was 45+ years in the making. I'm a bit confused on how we should blame Obama for all of this. Clearly he's responsible. That's what I'm told. Should we blame him for not spending enough to get us back on that unsustainable trend (as Krugman would suggest)? Or should we blame him for spending too much in a feeble long-term effort to fend off the Great Depression II (as Romney would suggest)? From a deeply emotional sarcastic state of despair, I'm really torn on this. It's like he's spending too much, but yet not enough! Somebody needs to do something!

The world really needs better skate goats. Life would be so much easier.

Source Data:
St. Louis Fed: Custom Chart

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