I ran into Don while I was waiting for the bus last night. Knows everyone. Always a kind word. That's Don.
After the usual talk about the kids and the family, Don started in about the economy. He was telling me that it's a different world in Southeast Washington, the heart of the African American community here. The recession is a depression there. Much higher unemployment and much higher rates of foreclosures.
My talk with Don brought home to me again how the Great Recession is not an equal opportunity hardship. If you live anywhere near where they make cars (or used to) you know this. If you are a teenager or member of a minority, you know jobs are non-existent.
And, if you run a small business, you know that credit is tight. The administration tried to help out small business today. Late, some small banks say. But the higher loan limits proposed for the SBA will help.
In particular, the higher loan limits apply to small business purchases of real estate. That should help commercial real estate -- a sector where the great recession is now hitting especially hard.
But where is the help for Don's friends in Southeast? Economists believe we are getting back to normal, the economy is growing again. But many communities may find they will be the first to lose their jobs and the last to recover?
Comments
I don't know how we can get back to normal without a lot more redistribution of wealth. Taking equity and jobs away from the middle and lower class and borrowing more to rescue large banks might cause the economy to grow on paper, but it doesn't sound normal to me. I'm sure we'll get to something more sustainable eventually out of necessity - the moves toward supporting small businesses are an indicator of that trend.
Getting back to normal... The jobs went to China !
There is a new normal, it is the Argentina model economy !
I hate to break the bad news, butt..the wealth producing engine in USA is gone, and the nation's equity was replaced by debt !
Now in USA we have an economic engine that runs on imported credit, spent to buy imports, bought with money borrowed from the creditor.
The next stage in the devolution of America is when the creditors cut off the credit.
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When ? When will they cut off our line of credit ?I do not know. But the time will come when the dollar hits a wall. We will be forced to either collaps the dollar, or drive up interest rates and that will collaps the economy.
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Not much of a chioice humm..
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In the short tun, the dollar still has a lot of power....it is backed by bankers, and the military.
In the long run, the dollar is pretty much dead.
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As is our economy.
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I wish to hell I was wrong, but I am not.
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the collaps of America was planned, and it started with NAFTA.