Sunday, June 5, 2011

The recession was over two years ago however the depression rages unabated

There has to be a special place in hell for economists. After the worst economic meltdown in 80 years we are to believe that the "recession" ended two years ago. Housing prices, the single largest investment for individuals have dropped more during this five year period than they did during the "Great Depression", real wages have dropped, people who have lost their jobs and been lucky enough to replace them have done so at lower wage levels. Confidence has been lost in the system and there is no end in sight. At some point some economist will say that this was in fact a depression.

Against this backdrop it is very difficult for individuals to commit discretionary dollars to fun. Yet fun is what is needed most. Yes we might not have any money tomorrow however "it is better to live one day as a lion than a hundred years as a lamb". Rage, rage against the dying of the light. As hard as it is to believe if your savings are being drawn down every month, there is opportunity. Businesses that have adjusted and are providing value for the service or product are in fact prospering. The massive amounts of liquidity in the system will at some point be deployed and finance another boom. Boy it sure feels like hell though. "When you are going through hell, just keep on going, you might get out before the devil knows you are there."