Quote from Ricter:
If jobs are being created, then unemployment is falling. Is unemployment falling? No? Well guess what, the "job producers" are not doing their job.
the job producers are trying to recover from a 15 year long misallocation of capital.
After the nasdaq bubble bubble cap gains payments went down dramatically. The state and federal govt revenues dropped in states like CA.
Greenspan and fanne and freddie and dopes with countrywide loans like dodd and lovers at fannie like frank and corrupt republicans as well ... engineered a real estate asset inflation game. Far too much human and financial capital got misallocated. (also derivatives backed by the fools at aig allowed more financial misallocation by tech business and GE capital)
This kept govt revenues, wall street bonuses, and the earnings of people who spoke well but had no real skills (realtors and mortgage brokers) excessively high for a decade.
We have to acknowledge that assets, salaray expectations, and govt revenues and spending must decrease back to pre bubble levels.
Say 1993 to 1995. When they do... real businessmen will start in investing and creating jobs.
My signal will be when most doctors can buy the homes of the former hedge fund sales guys... in Greenwich, Rancho Sante Fe and the hamptons.
