Presently we are falling into a depression. Two large feed backs that will move us to that state are depletion of unemployment benefits and collapse of commercial real estate.
Bill Clinton, in addition to hacking away at FDRs financial regulations, worked with moderate Republicans to redefine unemployment. Here is a description of 7000 people a day running out of unemployment benefits (this rate is increasing to 10,000 people a day). This is a situation not faced by the unemployed for generations in the United States.
To get a sense of how poorly managed commercial real estate was, you the tax payer are now the proud owner of a worthless mall in Oklahoma City. Here is the story.
“A few months ago, wags insisted that office rents and vacancy rates wouldn’t be affected by the recession and credit crunch. Wrong. Now vacancies in some areas are as high as 30% — and rents are crashing.”
The mainstream news/echo chamber is afraid of both of these stories or their accurate reporting. Unfortunately economic and social reality will out pace their fantasy views presented nightly.