From CNBC:

"Main Street has just entered the act. The peak of the pain is not visible yet," said Asha Bangalore, an economist with Northern Trust in Chicago.

The consumer strains are well-documented. Aside from the credit contraction, gasoline and grocery prices are on the rise, the housing...

With the release of the latest GDP report, the possibility of a consumer lead recession just increased.

First, before today's GDP report there was a series of charts that caused me great concern. Here they are in the appropriate order.

Year over year job growth has been deteriorating...

Housing is what started the current mess me are in. Thanks to record low interest rates from the Federal Reserve, the US consumer went on a debt-induced home buying binge. That binge is now coming home to roost. And it's not going to let up for the foreseeable future.

Let's...

Once again, we're hearing economic la-la land from the Republican candidate. As usual, we're hearing the great canard -- there is a free lunch, you can have something for nothing and you can cut taxes and increase revenue. Let's go over the facts AGAIN for those of you playing at...

I am traveling today and may not get to today's market until tomorrow morning.

Yesterday the Federal Reserve released the Beige Book which provides an excellent overview of current economic conditions. So, let's dig in. I'm going to offset the Fed's information and italicize the words.

Despite some...

The whole dust-up about Obama's statement about people being bitter is, well, overdone. People have every right to be bitter right now. Consider the following facts.

First, the last expansion saw the weakest establishment job growth of any expansion since WWII.

As a result, real median household income...

I have been against the Iraq war from the very beginning. However, my arguments didn't rest on the lofty perches of ethics or morals; they rested on the far cruder cost benefit analysis of war. The bottom line is war costs far more than it is worth economically. And the...

From the WSJ:

After several years of relative stability, a wave of rising prices is washing over the world economy.

It comes at a most inconvenient time. The Federal Reserve is sharply cutting U.S interest rates -- the opposite of the usual response to rising inflation -- to...

Either we're in a recession or we're about to start one. Either way, the latest expansion is over. While there may be some question about when it happened (the expansion, that is) the reality is it was the least impressive expansion since WWII. Below I will explain why.

Before I...

Yesterday, Bernanke testified on capital hill. His testimony, which is available on the Federal Reserve's website, offers a good overview of how the Fed views the economy.

It's also important to remember the Fed is as much a political player as it is an economic player. While a...

As if on cue, more news is coming out that shows how the government has let business say and do things that aren't good for the U.S. public's health or overall working conditions.

Case in point:

Federal safety officials were negligent in their approval of work plans...

Over the last 4-5 years we have seen an astonishing amount of problems in the business community. And it's not just a minor incident here and there; it's everywhere. From the complete breakdown in the financial sector to toy recalls to meat recalls every industry that has "self-regulated" has shown...

Over the weekend, Barry Ritholtz over at the Big Picture blog had one of the most thought provoking posts I have read. It's titled "Investing in a Post-Fact Society (a/k/a, Were the Good Times a Mirage?)." It is a post I will be chewing over for quite some time. I...

Last week has a historic week for the Federal Reserve. Going back to the end of the previous week we learned that one of Wall Street's oldest and most venerable investment banks was basically bankrupt. Over the weekend we learned that JP Morgan was working to buy Bear. And...

Over at the Washington Note, Steve Clemons linked to a 2003 article titled "The Debtors Empire." What I find incredible about this article written almost four and a half years ago is how prescient its observations are today.

Isn't it just a little twisted that...

There were some fast-moving developments in the Bear Stearns situation.

Pushed to the brink of collapse by the mortgage crisis, Bear Stearns Cos. agreed -- after prodding by the federal government -- to be sold to J.P. Morgan Chase & Co. for the fire-sale price of $2...

From Marketwatch:

There is a marked difference between economic growth and debt-induced demand. Instead of letting the market take its medicine and enter recession in 2001, the powers that be injected fiscal and monetary drugs to dull the pain and induce stock gains.

The Federal Reserve understands the...

Housing has been deteriorating for the last two years. News from yesterday indicates the market stands a very good chance of getting worse.

From the WSJ:

Among the latest trouble signals, the number of American homes entering foreclosure rose to the highest level on record in the fourth...

Below is a compilation of two posts from my blog last week. Combined they show an economy that is in serious trouble.

Bernanke spoke to Congress on Wednesday. His opening statements provide a good outline of where the economy is presently. I have interspersed his comments with some...

There will always be a debate about the need and extent of regulation. This debate is healthy; it should prevent one side from pushing too far against the other.

However, as the financial system continues to experience a high amount of turmoil, it is clear that deregulation has exceeded the...