by Prince » Sat 21 Apr 2007, 17:48:17
$this->bbcode_second_pass_quote('Zardoz', 'E')xactly. We're not getting any good news at all. The doomer camp is increasing its numbers daily, it seems.
It doesn't bode well, does it? This is the source of the "feeling in our bones" we're starting to get. It isn't our imaginations. It's our intuition.
The cornucopians are absolutely dead wrong. They have it completely backwards. Too many negative factors are at work, and nobody can possibly fashion any sort of accurate model of how they interact and exacerbate each other. My crude, unscientific feeling, however, is that they don't just pile up on each other. It's worse than that. The negative factors don't each add individually to the total ill effects, they multiply them. We're looking at multiplication, folks, not addition.
Hence the "fast forward button" analogy we've been making around here for some time. Things are deteriorating at a bewildering pace that nobody in the past predicted. If my simple-minded theory is correct, that pace can only increase.
By-and-large I think the average person out there IS getting really good news lately, and therein lies the problem. Although we can see the dull light shining at tunnel's end, it's hard for us to justify this claim to the other 98 percent of the population when the Dow is at an all-time high, corporate earnings are up, inflation is under control (or so the Feds tell us), housing market is stabilizing or hit bottom (again, pure BS, but that's what the news tells us), unemployment is lower, interest rates are steady and may lower.
Back in late Feb/early March when the market dropped significantly, people pulled their head out of their ass and paid attention--that lasted for two weeks, then the markets kept climbing, earnings have been strong, coupled with all the other sugar-coated good news we've seen in the 5 weeks since. How can we honestly expect Joe Average Dipshit to believe that we're treading in deep shit if the surface looks crystal clear and prosperous?