"Consumers simply cannot make ends meet. Inflation-adjusted, or real, median household income declined for the fourth-straight year, plunging to its lowest level since 1995. Deflated by the CPI-U, the 2011 reading actually stood below levels seen in the late-1960s and early-1970s."Think about how much worse it's going to be when the crash hits. And here's a prediction things will get worse than during the Great Depression. Bold mine.
"At the same time, despite the ongoing nature of the economic and systemic-solvency crises, and the effects of the 2008 financial panic, income dispersion – the movement of income away from the middle towards both high- and low-level extremes – has hit a record high, instead of moderating, as might be expected during periods of financial distress. Extremes in income dispersion usually foreshadow financial-market and economic calamities. With the current circumstance at a record extreme, and well above levels estimated to have prevailed before the 1929 stock-market crash and the Great Depression, increasingly difficult times are likely for the next several years."Get ready for the pain.
Thomas Sowell reminds us of the role Bill Clinton's housing policies played in creating the housing boom and bust.
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