Underscore that: ??two thirds of the economy! ? Can that be true? If so, it's a reflection of the shift from an economy based on production to one reliant on consumption.
But consumption requires people with money to spend or with credit cards that are not tapped out. This is no longer a sure thing.
The reason: unemployment is still growing along with foreclosures and bankruptcies.
The banks are not out of the financial woods either, as the Financial Times notes:
??A study by Standard & Poor's, one of the world's leading credit rating agencies, has raised questions over the financial strength of some of the biggest banks ahead of new rules that could require them to raise more funds. ?
The economic ??rebound ? ??the highly vaunted ??recovery ? is a statistical joke. AP notes:
??A government report due out Tuesday morning is expected to show that the economy expanded at a pace of 2.9 percent from July through September, according to Wall Street economists surveyed by Thomson Reuters. If they are right, it would mark a slower expansion than the 3.5 percent pace reported a month ago. Most of that rebound reflected federal support for spending on homes and cars. ?
The market may be hot ??but for whom? All the business reports acknowledge, ordinary investors arenotreaping the benefits of the rally. ?
Why is this happening? Paul Farrell offers 15 reasons on Marketwatch about how the people behind the economic collapse continue to get away with it.
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