Mish's Global Economic Trend Analysis: Buffett: Recession Longer, Deeper Than Most Think

They are now making it official. The sky..is..falling!

http://globaleconomicanalysis.blogspot.com/2008/04/buffett-recession-longer-deeper-than.html

Mish's prediction on the general direction of the economy is that it will take an "L" form and this is rather than the more traditional recession forms of a "V" or maybe a "U". Though a "W" is also another down turn possibility in recessions 'we have known'.

So what's an "L"?..... We'll it is similar to what happened to Japan's economy in the early nineteen nineties. It went down and it just stayed down for about 17 years. The Japanese economy didn't grow and the working population just stood still and then recently it again seems to have possibly woke up. Of course the Japanese had been stuffing their pillows with Yen/dollars so they didn't experience the down turn as a collapse.

Of course, what makes the "L" form non predictable for the U.S. is this country is actually bankrupt on a number of significant levels and the productive population.... those who pay the bills are also 'plastic broke'. Our national manufacturing base has consisted of house building and with all the appendages that could ever be desired.

We then joyfully sold these contrived money boxes which where too large for our shrinking families aswell as too far away from the job and too costly to maintain too each other until we where all... so rich... and we all had our fill of ....playing house. And what people will eventually end up living in is a modified Motel Six with the porch light off.

But then the actual bill came as a big surprise and that's when we all tried to sell at once just like in any...other...Ponzi pyramid game. You know the game where everyone looses other than that first guy out the door and who also takes it all with him. And that's what Charles Ponzi did in the nineteen twenties here in the U.S. So this is just a very large variation on an old scam of something for nothing and the nothing is actually what we are ending up with.

And now all the MacPalaces are again turning into pumpkins...and when we look at them and even if we squint ...they now seem to be just rotting Pumpkins. And as to that money tree we had seen planted on the front lawn it now turns out is wilted and dieing.

And of course our other dollar machine has been weapons and war. And the strange thing about armaments and their by products... Wars! They are both the most profitable of our national industries which keeps the equities markets from hemorrhaging before our eyes. But very little ever seems to make it back into our economy. They have one customer the tax payer and they are always shown as red on the governments books... like in blood.

And then we have the price of life necessities going up but none of that profit shows up in the peoples pockets either. The 'smiley car' oil corporations and the food and grain cartels seem not to hand anything back as they legally rob us of our own wealth.

And how deep is the vertical (fall) side of the "L" and how long is the horizontal line of the base? Some analyst are giving estimates on the first of three too five years for the 'fall' line before our feet even feel the sludge on the bottom.

And as to those few who are using the "L" for a predicted explanation. They are just not saying much about that mysterious horizontal line as it seems we will be in another world reality when we finally get down there. And who knows what lurks in those "briny deeps"?