The Fast Disappearing U.S. Middle Class

[Crewleader]

Aug 09, 2008 - 05:19 AM

By: Jennifer_Barry

Economics



I've been concerned about the state of the U.S. economy for several years, but only recently has mainstream America started waking up to the severity of the crisis. Even the depths of the Dow bear market in 2003 didn't engender this much pessimism. At the time, most people still believed that stocks would go up in the long run, and it was time to scoop up the bargains.

The bargain hunters looked right when the markets rallied strongly for the next four years. Although last October the Dow breached 14,100, it's been a bumpy ride down since then. The U.S. suffered it's worst June stock market slump since 1930. In only a month the Dow plunged 10.19%, the Nasdaq dropped 9.10%, and the S&P lost 8.6%.

Unlike the previous bear market, investors don't have dramatic home price appreciation to fall back on. Most urban and suburban areas were enjoying annual double digit increases from 2002 through 2005 according to the S&P/Case-Shiller Home Price Indices. Now the top twenty metropolitan regions are down an average of 15.8% since last spring. Real estate speculators can no longer count on home equity loans to generate extra cash when needed.

http://www.marketoracle.co.uk/Article5810.html

[Triana]

1. It's been the plan for decades...

http://www.alternet.org/democracy/94334/big_business_is_making_sure_it_wins_the_presidency/

EDIT to add:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x3761471

[Spiffarino]

2. Step by step, a return to the Gilded Age

The wealthiest billionaires in America - not the "rich" who only have millions - have long sought a return to a time in American history where they ruled by proxy and the government existed to serve them. Reagan got the ball rolling, and now Bush has attempted to realize the dream.

Most labor unions have disappeared and those that haven't have become inconsequential, people are job-scared, and real income is dwindling. Mission Accomplished.

[spag68]

3. Rich versus really rich versus the rest of us

Saturday I was out to Montauk, having been invited to do a little fishing by a friend with a small boat out there. Now this is the place that git's all the press, "the Hampton's". So returning from our little fishing trip I noticed something strange. Ammaganset one of the upscale towns out there had vacancy signs at the motels, the bars and restaurants seemed only half full, and this on a beautiful Saturday night. East Hampton had very light traffic, and a couple restaurants were actually closed. Now this area normally would be jammed on a summer night during the week, let alone a Saturday, and the ride home gave me time to think about it. I'm sure there is still plenty of money in the Hamptons, but even they must be cutting back. I don't have much compassion for these wealthiest of people, but as trivial as these things seem, I feel that when you see it happening there, you can just imagine how bad it is elsewhere.I wonder if this is being repeated elsewhere, and if so, maybe this time we can actually beat the oil company's that have stolen so much form us, and their enablers in the crime ridden White House. If it really happens, then I say the pain has been worth it.

[flashl]

4. Really, the "middle class" that many think they know is gone. Americans are either sleepwalking or

simply have a great capacity for denial. Pew surveys and others have shown that Americans can be in soup lines and still self-identify themselves as being in the middle-class, go figure.

Hovering Above Poverty, Grasping for Middle Class
America's Four Middle Classes
American meritocracy at risk

The day after America's self-identifying middle-class (many working two-three jobs) wakes up will be interesting.

[mikita]

5. kicked for reading later. n/t

[Crewleader]

6. Hi mikita

Try to watch the video too, Elizabeth Warren is spot on! :hi: