For all of you keeping score out there, and wondering what's holding up that economic free-fall, the answer came in today:
Because the markets are so desperate to believe the good times are staying with us. Can't make this up. The markets went UP after Greenspan spoke.
WASHINGTON (Reuters) - Federal Reserve Chairman Alan Greenspan on Thursday dismissed concerns the U.S. economy was entering a serious slowdown, giving the go-ahead for further increases in interest rates.
Ed. note: The Fed has to increase rates. The country, from top to bottom, is living on borrowed money. The catch is that there have to be suckers out there who will buy our Treasuries (they give us cash, we give them - in the words of our disassembling leader - "worthless I.O.U.'s"). But they're not buying the Treasuries at a crummy 3 - 3.5% these days. Frankly, I don't thinking bumping them up will get them to buy either.
Also from the Reuters' article:
Businesses are having a harder time squeezing more output per hour from workers after several years of extraordinary productivity gains.
Translation: American workers suck. Dump them and get Chinese instead!
And also from the Reuters' article:
The Fed chairman repeated that while he did not think a nationwide housing price bubble was likely, there were signs of froth in some local markets where home prices have climbed to what appear to be unsustainable levels.
Ed. note: How come no one ever presses Alan for details - like which markets are a little frothy? Is it because he doesn't want to say San Diego, Los Angeles, San Francisco, San Jose, Phoenix, Washington-Baltimore, Boston, New York aloud?