ragerunner

I can hear the chant. QE3, QE3, QE3, QE3. If the FEDs goal is to keep interest rates at very low levels, for the next 2 or 3 years, they will have no choice but to buy a lot of the US issued debt. Business spending drop limits U.S. growth to 2.2% GDP misses economic estimates after surprise from business sector "WASHINGTON (MarketWatch) — The U.S. economy downshifted in the first quarter as business and defense spending fell, raising fears the expansion could lose traction in coming months. In its first estimate Friday, the Commerce Department said gross domestic product rose at a 2.2% annual rate between January and March, slower than the 3.0% pace in the prior three months. Economists polled by MarketWatch had expected a 2.7% growth rate." http://www.marketwatch.com/story/business-spending-drop-limits-us-growth-to-22-2012-04-27 So what were the main factors to the GDP number. Consumer consumption, inflation, warm weather and a reduction in savings. Not very sustainable. More on the US GDP growth figures from Paul Ashworth at Capital Economics: "First-quarter GDP growth was driven principally by a 2.9% increase in consumption, which was markedly stronger than expected. But with real personal disposable incomes rising by only 0.4% annualised, households were only able to increase their spending at that pace by running down their saving rate, to 3.9% in the first quarter from 4.5% in the quarter before. The unseasonably warm weather may have contributed to that decent gain in consumption, but it is also worth remembering that gasoline prices were rising rapidly over the first three months of the year." http://www.telegraph.co.uk/finance/debt-crisis-live/9230373/Debt-crisis-live.html A quick look at what is going on across the pond economically. Add in the new political issues in France and the Netherlands and things are starting to look more and more shaky. Eurozone Retail Sales Plunge at Strongest Pace Since Late-2008; "German Retail Sales Plunge Into Contraction; French Retail Sales Plunge at Record Pace; Record Job Losses, Record Retail Plunge in Italy" "Plunging to its second-lowest level on record in April, the PMI hit 41.3, down from 49.1 in March. The latest figure signaled the largest monthly fall in retail sales across the single currency area since the depths of the global financial crisis in November 2008 (40.6)." http://globaleconomicanalysis.blogspot.com/2012/04/eurozone-retail-sales-plunge-at.html S&P Cuts Spain to BBB+; Outlook Negative "Standard & Poor's Ratings Services today said it lowered its long-term sovereign credit rating on the Kingdom of Spain to 'BBB+' from 'A'." http://www.streetinsider.com/Credit+Ratings/S%26P+Cuts+Spain+to+BBB%2B%3B+Outlook+Negative/7378240.html

The last number was revised upward (as always) which shows this week's number having a small drop. Next week this weeks number will be revised upward and the game will repeat itself, just as it has been for a very long time now. U.S. jobless claims remain elevated Expectations for a decline fail to materialize "WASHINGTON (MarketWatch) — The number of Americans who applied for jobless benefits remained elevated for the third straight week, suggesting potential weakening in the U.S. labor market. Jobless claims fell by 1,000 to a seasonally adjusted 388,000 in the week ended April 21, the U.S. Labor Department said Thursday. Claims from two weeks ago were revised up to 389,000 — the highest level since the first week of January — from an original reading of 386,000." http://www.marketwatch.com/story/us-jobless-claims-remain-elevated-2012-04-26 Pending home sales at 23-month high in March "WASHINGTON (MarketWatch) — Contract signings to sell existing homes reached a 23-month high in March in an indication of a rebound in activity in the housing market, a trade group reported Thursday." http://www.marketwatch.com/story/pending-home-sales-at-23-month-high-in-march-2012-04-26?link=MW_story_insert

So true. That is why the economy is struggle to gain momentum without a housing recovery and will continue to do so. We are more and more a country of home building and consumption of goods.

So we have been at this for half a decade now and have spent an untold amount of money and tried all kinds of 'unique' approaches to juice the system. But we are still not move forward with any real momentum. What is next and how many more bullets do they really have? Fed struggles to spur slowest recovery in memory "They’ve tried dumping $2 trillion in cash into the financial system, slashed overnight interest rates to zero and made an unprecedented promise to keep rates low for at least another two years." "After each recession since World War II, housing has helped lead the subsequent recovery. But five years into the biggest housing bust since the Great Depression, another hoped-for spring revival in home sales is in doubt. Following signs earlier this year that the market may have hit bottom, the National Association of Realtors said last week that sales of previously owned homes fell 2.6 percent last month to a seasonally adjusted annual rate of 4.5 million. That's well below the pace of about 6 million typically seen in a healthy economy." http://economywatch.msnbc.msn.com/_news/2012/04/24/11357191-fed-struggles-to-spur-slowest-recovery-in-memory?lite

This story on housing is far from over. This next wave will put more pressure on the housing market and economy and should start hitting the markets in the Spring of 2013. How long this next downturn last will depend on how fast or slow the banks move on selling this shadow inventory. U.S. home prices fall to nearly decade low February prices down 0.8% on the month "WASHINGTON (MarketWatch) — U.S. home prices dropped sharply in February to hit the worst level in nearly a decade, according to a closely followed index released Tuesday. The S&P/Case-Shiller 20-city composite fell 0.8% compared to January levels to take the year-on-year drop to 3.5%. The index is at its lowest level since October 2002. Of the 20 cities measured, 16 had negative readings and only three showed gains." http://www.marketwatch.com/story/us-home-prices-fall-to-nearly-decade-low-2012-04-24 Foreclosure Crisis: Halftime Three hidden costs of the foreclosure crisis The country’s foreclosure problem is only halfway over: CRL http://www.marketwatch.com/story/three-hidden-costs-of-the-foreclosure-crisis-2012-04-24 I think this spring and summer is going to be the best we have seen in housing in many years. Look for prices to go up some and sales to increase. After the election and next year not so sure. Sales of new homes drop 7.1% in March Purchases in U.S. in February revised sharply higher "WASHINGTON (MarketWatch) — Sales of new U.S. houses fell 7.1% in March, but only because purchases in February were revised sharply higher, according to government data released Tuesday." http://www.marketwatch.com/story/sales-of-new-homes-drop-71-in-march-2012-04-24?link=MW_story_insert

Here is a shock, the EU recession is lasting longer then the 'economist's' projected. Manufacturing and services activity highlights eurozone's struggle "Eurozone services and manufacturing output contracted more than expected in April, as the economy struggled to rebound from a fourth-quarter contraction, and powerhouse Germany saw manufacturing output fall close to a three-year low." "April's PMI for the eurozone's dominant service sector slipped further below the 50 threshold that divides growth from contraction in April, falling to 47.9 from 49.2 in March." "We were saying last month that we probably had a second consecutive quarter of decline (in business activity), making a recession - now that's extending into a third quarter," said Chris Williamson, chief economist at PMI compiler Markit." http://www.telegraph.co.uk/finance/financialcrisis/9220628/Manufacturing-and-services-activity-highlights-eurozones-struggle.html China manufacturing shrinks at slower pace: HSBC "Initial PMI reading of 49.1 still marks contraction" http://www.marketwatch.com/story/china-manufacturing-shrinks-at-slower-pace-hsbc-2012-04-22 Whoever thought Spain had left a recession was on something. Their unemployment rate is depressionary (20+ percent). "Markets tumble on political uncertainty in France and the Netherlands, a raft of weak economic data from the eurozone and news that Spain is back in recession." http://www.telegraph.co.uk/finance/debt-crisis-live/9220235/Debt-crisis-live.html This should help boost current and future home sales. Good thing we have college loan deferment programs. 1 in 2 new graduates are jobless or underemployed Note to Class of 2012: More than half of young college graduates now jobless or underemployed "WASHINGTON (AP) -- The college class of 2012 is in for a rude welcome to the world of work. A weak labor market already has left half of young college graduates either jobless or underemployed in positions that don't fully use their skills and knowledge. Young adults with bachelor's degrees are increasingly scraping by in lower-wage jobs — waiter or waitress, bartender, retail clerk or receptionist, for example — and that's confounding their hopes a degree would pay off despite higher tuition and mounting student loans." http://finance.yahoo.com/news/1-2-graduates-jobless-underemployed-140300863.html?l=1

Philly Fed manufacturing index falls in April Economic Report Companies in region still expanding but at slower pace; hiring is up "WASHINGTON (MarketWatch) — A closely followed report that measures the health of U.S. manufacturers fell for the first time in six months, the Philadelphia Federal Reserve said Thursday. The bank’s index of business conditions in the Philadelphia region dropped to 8.5 in April from 12.5 in March. That was below the consensus of economists polled by MarketWatch, who expected the index to slip to 10.8." http://articles.marketwatch.com/2012-04-19/economy/31365571_1_manufacturing-index-index-for-new-orders-jobless-claims U.S. existing home sales fall 2.6 pct in March "(Reuters) - U.S. home resales fell in March but the supply of properties on the market tightened and prices inched higher, giving mixed signals about the pace of recovery in the still-struggling housing sector." http://www.reuters.com/article/2012/04/19/usa-economy-housing-idUSL2E8FIMW620120419

Home building slows, but March permits up New construction could accelerate in months ahead "WASHINGTON (MarketWatch) — U.S. builders started work on new homes in March at a sharply slower pace, but the number of construction permits jumped to their highest level in 3 1/2 years in a positive signal for the slump-ridden industry. The Commerce Department reported that housing starts fell 5.8% to an annual rate of 654,000 last month, well below the MarketWatch forecast of economists projecting an increase to 703,000. The data are seasonally adjusted. Housing starts in February were also revised down slightly, to 694,000 from 698,000." http://www.marketwatch.com/story/home-building-slows-but-march-permits-surge-2012-04-17

This is a strange time of the year for this data point to drop, right as we enter the spring selling season. I know that a lot of builders are constructing a lot of new homes in hopes of a good selling season. One observation that I noticed just last week, a lot of these new homes have available signs on them. Let hope things pick up in May/June/July before the core of the selling season ends. On another note. It appears that the builders that are producing products that cater to the Y generation and boomers (smaller homes, single story, smaller lots, lower prices points, closer to amenities, mixed use) seem to be doing OK. The builders that are constructing the large two story models on large suburban lots and acting like its the 90s and early 2000 all over again are having some issues. Builder sentiment drops in April; first fall in 7 "WASHINGTON (MarketWatch) — Home-builder sentiment dropped in April for the first time in seven months, as growing traffic at new-build sites hasn’t yet led to sales." http://www.marketwatch.com/story/builder-sentiment-drops-in-april-first-fall-in-7-2012-04-16 N.Y. manufacturing gauge slows markedly in April "WASHINGTON (MarketWatch) — A reading of New York–area manufacturing conditions pointed to a significant slowdown in April, as purchasing managers reported slowing shipment growth and falling unfilled orders." http://www.marketwatch.com/story/ny-manufacturing-gauge-slows-markedly-in-april-2012-04-16?link=MW_story_insert

My apologies. I did not know there was some loose connection to Obama in the past. I suppose you're right in that it can not, for that reason, be considered objective. Was Bill Ayers on the Board as well? As far as your objectiveness, I would use a thicker veil if you want to pass that off. You're very informative, but your overall sales pitch is clear. And your constant reference to zerohedge kind of belies your last point, no? Lastly, I realize this is where you claim your expertise, but don't get so offended when you are challenged on some of the arguments you make. This is a very debatable topic. Experts and academics go back and forth on these very topics all of the time. I only jump in when I think something is being misrepresented. You can feel free to respond if you think I'm wrong. But it's not your thread. The ground rules are what they are. I think you miss read my comment. Not offended at all. Just not wanting this to turn into a political discussion. I personally think both parties do what the FED and Wall Street wants (and I think they both have shown that very clearly by now). With my post that come from zerohedge. I try to only use the data and charts that are provided there, I don't agree with many of their points of view and spin. But they do provide some charts and data points that are helpful in an economic discussion.

I work in the Denver metro area and can tell you that the builders are showing some renewed confidence in housing starts. The price points and products types are much different (overall) than they where during the boom (smaller homes, smaller lots, lower prices and a lot of multifamily making up a bulk of the new growth). Of course the Denver metro area has had the largest growth in construction jobs over all the other metros. So we are probably seeing the top end of the growth with most other metros at lower rates. But, its clear there is some renewed interest in housing (from the builders and buyers). Is it the start of a long term turnaround or something less substantial. Time will tell. We have been at this downturn for half a decade now, hopefully a bottom is finally being established to build from. Pulse, Lennar jump as survey shows housing rebound "NEW YORK (MarketWatch) — Shares of U.S. homebuilders rallied on Wednesday after a Wells Fargo analyst’s research report said data from 20 select markets nationwide are showing strength across the board. “For the third consecutive month, our survey points to an improvement in orders suggesting 2012 may be the long-awaited recovery year for housing,” the note said." http://www.urbanohio.com/forum2/index.php?action=post;topic=17905.3540;last_msg=613201

Does this account for those people working "under the table" who may or may not be recieving unemployment comp on top? How about those who have been switched from unemployment comp to some other form of assistance like disability? BTW, like most things in a society of 300 million+, it is a bit more complicated than what is being bantered about. For those interested in an objective explanation of these varying statistics without the spin, check this out - http://www.factcheck.org/2012/02/whats-the-real-jobless-rate/. The interesting note about the chart in that link is that, no matter which of the four methods of calculation you use, the trend remains the same. It looks like the peak occured in late 2009 and has been slowly moving downward ever since. I also will point out that, technically, if you work 39 hours a week, you are part-time and counted towards the U-6 calculation people (for whatever reason) gleefully rave about like they just got straight A's on their report card. Thank for your input and your link. Also nice to see more information. As far as the comment 'we found all of that out before the elections' is incorrect. December 1, 2008 (about 30 days after the election) "NEW YORK (CNNMoney.com) -- The National Bureau of Economic Research said Monday that the U.S. has been in a recession since December 2007." http://money.cnn.com/2008/12/01/news/economy/recession/index.htm The FED didn't announce the purchase of mortgage securities backed by Fannie Mae, Freddie Mac, and Ginnie Mae until December 30, 2008. After the elections. This also was the first real moment when the FED showed how desperate the situation on housing and the remaining banks was. The FED continued to dismiss the bank failures up to the late summer/early fall of 2008 (about 60 days before the elections). Housing cheerleaders were still calling for a soft landing during this time frame as well. Quote from Hts121 "Does this account for those people working "under the table" who may or may not be recieving unemployment comp on top? How about those who have been switched from unemployment comp to some other form of assistance like disability?" Are you suggesting that these items are new to the system and/or are now being done to such a greater amount that they actually affect the data in a way never before seen? It ashame the original Recession/housing bust thread is still not available. (I know it was huge and the cleaning of the thread that needed to be done was to much.) But, it would be an easy read of all the 'happy talk' society was feed going into the fall of 2008 before the elections. As far as your comments about your link as an objective site, maybe or maybe not. One of the main supports of that site Annenberg, actually had Obama on its Chicago Annenberg Chellenge Board of Directors. I would ask that we try not to lable links as objective or unobjective just because of a personal or political view point. I have tried not to turn this into a political discussion and have worked to post most of my stuff from MSM sites.

This chart helps show that the unemployment rate number is no longer connected to the actual amount of people employed. Both of these numbers historically have been closely connected until now. This helps show what is really happening, people are just falling off the unemployment roles (no longer counted) but it isn't because they are finding a job. This feels a lot like 2008 (doesn't matter which party is in the White House). Wall Street was near these same levels, the FED was telling us there was no housing bubble bust, things are just fine, no recession, nothing wrong with the banks, blah, blah, blah. I guess Americans have short term memories. Of course as soon as the election was over we find out that housing was a bust, we had been in a recession for almost a year and Wall Street was really starting to come undone. Will we repeat these types of events again or will it be different this time?

Insider information on Goverment data is being used by those in the 'know' to make a profit? :-o Bets on ZROZ, employment data smack of Wall Street inside job "If you had known about the numbers that the Bureau of Labor Statistics was releasing Friday about employment, and wanted to bet on your information, there would have been no better place to turn than the PIMCO 25+ Year Zero-Coupon U.S. Treasury Index fund (ZROZ) the longest-duration Treasury ETF out there." "Apparently, somebody or several somebodies made that bet. The ZROZ traded 831,000 shares on Thursday, or roughly 25 times its average daily-trading volume. The fund only had moved more than 25,000 shares six times since the start of March, and never close to Thursday’s activity. “With that much trading volume, nothing makes sense besides someone having inside information about what [the Bureau of Labor Statistics] was going to say,” said Michael S. Falk of Focus Consulting Group in Chicago. “If you had wanted to make that bet and it was not inside information given to you at the last minute, you would have averaged into it to avoid disrupting the bid-ask spread. … While you could make the same bet in the options market, it is more likely for the authorities to look for it or find it there.” "Added Falk: “With a bet of that size made a day before a news announcement, it certainly gives the feel that the system is being rigged and gerrymandered. The only reason it doesn’t panic the market is that the average person — and probably the average regulator — doesn’t even know that stuff like this is going on.” http://blogs.marketwatch.com/thetell/2012/04/06/bets-on-zroz-employment-data-smack-of-wall-street-inside-job/

Acutally the Y Generation that should be entering the job market at this time and in the future is larger than the baby boomers (so we really should not be seeing a drop in the labor force numbers). Add in all the evidence that the Boomers are not retiring at the rate expected and you have a noticable issue with a decline in the Labor Force.

Stock futures, dollar sink after jobs data Most markets closed Friday; job growth below expectations "NEW YORK (MarketWatch) — U.S. stock futures and the dollar slumped Friday, while Treasury prices surged after government data delivered an unwelcome surprise on a day when most markets were closed: Only 120,000 jobs were created in March, well below market expectations. Equity futures had been slightly higher, but turned sharply lower after the Labor Department report — the first time since November that job growth dropped below the 200,000 level. Economists surveyed by MarketWatch expected a rise of 210,000." http://www.marketwatch.com/story/stock-futures-dollar-sink-after-jobs-data-2012-04-06 What is probably more telling on job growth in the US is not these monthly job growth numbers. Its the Labor Participation Rate (people that are working). So what is this data saying, that the amount of people in America that are working continues to decline. Labor Force Statistics from the Current Population Survey http://data.bls.gov/timeseries/LNS11300000

I hope you take the time to watch this 8 minute video from the Daily Show. Several times in the last year there has been discussion on this thread about bailouts for banks/wall street and how much was given, how much was paid back and who profited. I think this 8 minute clip on The Daily Show helps clarify that TARP was a very small amount of money that was given to the banks. I wonder how many programs are still happening with very little discussion in the MSM. We did find out about a week ago that the US Feds are starting to take on Euro debt even after the public was told that we would not participate in the Euroland bailout. America's Next TARP Model "A Bloomberg report reveals that the U.S. government loaned banks $7.7 trillion in secret bailout funds at no interest and then borrowed the money back at interest." http://www.thedailyshow.com/watch/thu-december-1-2011/america-s-next-tarp-model

How long can they keep this game going? The demand for US debt from the private sector and foreigners has basically dropped off the cliff. Sooner or later the FEDs will not be able to continue to be the majority buyer of our debt. When this happens interest rates will rise significantly and housing prices and sales will begin another leg down and I think we have all learned what that means for the economy. Demand for U.S. Debt Is Not Limitless In 2011, the Fed purchased a stunning 61% of Treasury issuance. That can't last.. "The conventional wisdom that nearly infinite demand exists for U.S. Treasury debt is flawed and especially dangerous at a time of record U.S. sovereign debt issuance. The recently released Federal Reserve Flow of Funds report for all of 2011 reveals that Federal Reserve purchases of Treasury debt mask reduced demand for U.S. sovereign obligations. Last year the Fed purchased a stunning 61% of the total net Treasury issuance, up from negligible amounts prior to the 2008 financial crisis. This not only creates the false appearance of limitless demand for U.S. debt but also blunts any sense of urgency to reduce supersized budget deficits." http://online.wsj.com/article/SB10001424052702304450004577279754275393064.html?mod=googlenews_wsj

It will all depend on the value of the dollar vs the Euro.

So we have, UK, Spain, Portugal, Greece, Italy, France (and other EU members) all now in recessions, with Germany and Japan on the edge. This will/is impacting the US. Look for QE3 some time this year in an effort to kick the can down the road a little farther. UK is back in recession, says OECD "Britain has plunged back into a recession, as the economy continued to shrink in the first three months of the year, according to a leading global authority." http://www.telegraph.co.uk/finance/economics/9173199/UK-is-back-in-recession-says-OECD.html General strike hits Spain - in pictures http://www.telegraph.co.uk/finance/financialcrisis/9173687/General-strike-hits-Spain-in-pictures.html France enters recession "France is in recession according to the official INSEE statistics agency but it said that it will be short and shallow. INSEE sees the economy contracting in the final three months of this year by 0.2 percent and believes it will shrink by a further 0.1 percent in the first quarter of 2012." http://www.euronews.com/2011/12/16/france-enters-recession Italy Officially Enters Recession "Italy's economy entered recession for the first time since 2009 after registering two consecutive quarters of decline in GDP, final data from the statistical office Istat showed Monday." http://www.turkishweekly.net/news/132381/italy-officially-enters-recession.html

While the numbers missed their projections at least most areas are up. Probably the biggest down part of this report is that actual shipments of goods fell again and inventories continue to rise. If those two trends continue there will be a pull back in the not to distant future. Year over year the numbers look much better. Durable-goods orders up 2.2% in February Airplanes, defense lead way as demand shows broad strength "Economists surveyed by MarketWatch had expected durable-goods orders to increase a seasonally adjusted 2.9% on the month, snapping back from a sharp drop in January. It was the fourth increase in five months. Shipments of all durable goods, meanwhile, fell 0.4% in February. Inventories of such goods rose 0.4% last month, however." http://www.marketwatch.com/story/durable-goods-orders-up-22-in-february-2012-03-28

These economic downward vortexes get very hard to escape and more budget cuts will only add to the speed of the decline for the forseeable future. Spain to slash spending as economy slumps back into recession Spain’s fragile economy has fallen back into recession and the country faces a year of grinding economic decline as premier Mariano Rajoy slashes spending yet further to meet EU demands. "The Bank of Spain said the “contractionary dynamic” in the economy continued into early 2012 for the second quarter in a row, with an “intensifying” pace of job losses. It expects GDP to fall by 1.5pc this year. It is unclear how he can slash the budget deficit from 8.5pc of GDP last year to 5.3pc to meet the compromise target agreed with Brussels after a bruising confrontation." “It is frankly impossible, given that it would aggravate the recession and this would crush state revenues,” said Jesús Fernández-Villaverde from the University of Pennsylvania." "Fresh data from Spain’s treasury showed the deficit for January and February was worse than for the same period last year, even stripping out “one-off” costs stemming from excesses by the regional juntas." http://www.telegraph.co.uk/finance/financialcrisis/9170309/Spain-to-slash-spending-as-economy-slumps-back-into-recession.html

Case-Shiller: Home prices fall in January Index records fifth straight decline; prices lowest in nine years "WASHINGTON (MarketWatch) — U.S. home prices fell for the fifth month in a row in January to the lowest level since early 2003, according to a closely followed index. The S&P/Case-Shiller 20-city composite index dropped 0.8% in the first month of 2012. The three-month rolling index includes transactions that took place from November to January. “Despite some positive economic signs, home prices continued to drop,” said David M. Blitzer, chairman of the index committee at S&P Indices. Over the past 12 months, prices have fallen 3.8% even though the U.S. economy has shown increasing signs of recovery. Sixteen of the 20 metropolitan areas posted declines, while only Miami, Phoenix and Washington, D.C., saw increases." http://www.marketwatch.com/story/case-shiller-home-prices-fall-in-january-2012-03-27

Of course Case Shiller data is not showing this and their data has seemed to be more accurate over the last several years. So prices go up and less people buy. Does that sound like a rebound? Plus last months numbers were adjusted downward noticably. Same story over and over, get the most out of the original headline then print the revision down the road when everyone is focused on the next original headline. Sales of new homes dip 1.6%, while prices jump "Sales of new homes fell 1.6% to a seasonally adjusted annual rate of 313,000 from a downwardly revised 318,000 in January." "Median sales prices, which are not seasonally adjusted, jumped 8.3% to $233,700, which is the biggest one-month percentage rise in 14 months. That’s the highest level since June. Compared with February 2011, median prices climbed 6%. The price difference between a new and an existing home widened to $77,100 in February from $61,100 in January." http://www.marketwatch.com/story/sales-of-new-homes-dip-16-while-prices-jump-2012-03-23?dist=countdown

Ben and the Muppets’ European adventure Commentary: Few warnings get taken seriously in a bull market "Yet his warnings on Wednesday that Europe’s crisis isn’t over went largely unheeded in the markets, almost to the point of being ignored. It can’t be that investors doubt his pedigree, like Smith. So it must be that the collapse of the euro is so widely expected that Bernanke’s comments are blindingly obvious. The problem is that, like with Smith’s greed claims, nobody wants to hear it, especially when markets are rising. This is how history bumps us along from crisis to crisis, never really fixing anything when there is time and then rushing for the exits when the crisis finally erupts. The Glass-Steagall Act, which separated banks and investment banks in the early 1930s, only to be repealed in 1999 and setting up the latest financial crisis a decade later, was an exception. No such weighty regulation will arise this time." "Bernanke and Treasury Secretary Tim Geithner’s warnings that European banks and sovereign debtors need to continue dramatic action to solve the debt problem shows that most people won’t listen to the folks at the top of the heap either. Not if the message is one they don’t want to hear." http://www.marketwatch.com/story/ben-and-the-muppets-european-adventure-2012-03-22