Economy

The wealth effect is another economic fallacy.

"Across all financial media, between both political parties, and among most mainstream economists, the “wealth effect” is noted, promoted, and touted. The refrain is constant and the message seemingly simple: by increasing people wealth through rising stock and housing prices, the populace will increase their consumer spending which will spur economic growth. Its acceptance is as widespread as its justification is important, for it provides the rationale for the Federal Reserve’s unprecedented monetary expansion since 2008. While critics may dispute the wealth effect’s magnitude, few have challenged its conceptual soundness.[2] Such is the purpose of this article. The wealth effect is but a mantra without merit. "

Something has to be produced before it can be consumed.

Dow falls over 200 points.

Chinese premier warns of wave of bankruptcies. This is the Chinese bust that has been so long in coming after decades of credit expansion.

50 million working-age Americans out of work.

"The number of native-born, working-age Americans who aren’t working has shot up by almost 9 million since 2007, and by almost 15 million since 2000, according to a new report by the Center for Immigration Studies, an anti-immigration group.
By late 2012, roughly 50 million native-born working-age Americans weren’t working, up from 40 million in 2000, according to the March 13 report, titled “Still No Evidence of a Labor Shortage.”"

Thanks Clinton, Bush and Obama.

Target detected malware attack, then ignored it.