Tag Archives: recession

Look Out Below: the Real Economy Just Hit Stall Speed

What do we mean when we say the U.S. economy is at stall speed? Stall speed refers to the air speed and angle of the wing (called the angle of attack) needed to keep an aircraft aloft. “An aircraft flying at … Continue reading

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Rent Bubble = Housing Bubble = Rent Bubble

Here is the conventional narrative about rents and housing valuations: 1. Rents have soared because people can’t afford to buy a house and have to rent 2. Based on soaring rents, housing is fairly valued In other words, rents and … Continue reading

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We Need a Crash to Sort the Wheat from the Chaff

When a speculator bought a new particle-board-and-paint McMansion in the middle of nowhere in 2007 with nothing down and a $500,000 mortgage, the lender and the buyer both considered the house as $500,000 of collateral. The lender counted the house … Continue reading

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How Healthcare Is Dooming the U.S. Economy

Three charts crystallize the healthcare dynamics that are dooming the U.S. economy. The first depicts the runaway growth of healthcare costs–a rapid expansion that is a permanent feature of U.S. healthcare, regardless of which party is in office or what … Continue reading

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The U.S. Economy Slows to Stall Speed

This long-term weakening of the economy is the direct result of financialization and the Federal Reserve’s policy of propping up impaired debt with more debt and constantly bringing demand forward with zero interest rates. The U.S. economy is slowing to … Continue reading

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