Fed Chairman Bernanke appeared before Congress today and again pushed back the predicted date of any "positive job growth". Banker speak for "we will continue to hemorrhage jobs and spiral down toward the abyss". Not unreasonable with nothing being done about the causes of job loss. So as more jobs leave the country we are left with fewer and fewer people that live a middle class lifestyle and provide business for all the people pushed into service jobs because their jobs have left the country.
More twenty something's are living with their parents and thirty something’s are returning to do the same when their homes are gone. But as the parents lose their homes in health insurance bankruptcies the places of refuge are disappearing and soon you will see multiple generations homeless.
State job counselors are telling men who make up 80% of the newly jobless to forget about ever getting a job like they had and to go after a women’s job. The catch phrase is "this is not a economic downturn but a fundamental restructuring". The obvious question is what do the women do who find themselves competing with men for fewer and fewer jobs as their jobless rate starts to climb. If they have kids maybe and I stress "maybe" they can get welfare for a time, but thanks to Clinton welfare has strict lifetime limits and a benefit rate that guarantees slow starvation.
Where do the homeless go when all options run out? In the Sci-fi movies the food wafer plant are used as a metaphor for the deathtrap slum, the fascist work camp, unchecked disease outbreaks and on and on. Or we could see a new dark ages where control is maintained through fanatic religion where the Sabbath is observed with executions of the so-called sinner and crusades are launched to further world domination. With a willfully ignorant population fixated on the circus and unaware how close they are to running out of bread, democracy is becoming a wistful dream.
An update on the banking collapse: four more banks were seized by the FDIC over the weekend and the 18th largest bank, CIT, who specializes in financing small and medium businesses, is again likely to file bankruptcy. They had announced a deal with bond holders yesterday but as of today the deal appears to have fallen through. A few billion would reportedly turn things around for CIT and the thousands of businesses that will fail with them.
The Inspector General for the TARP program now estimates the risk the Government has assumed to bail out the really large banks like Goldman Sachs to be 23.7 Trillion. How exactly do the Republicans plan on paying for the bread and circuses?