Who Profits From Denial of US Economic Situation?

For months, the drumbeat of "things are better now" has thumped through spokespeople who seem like a collection of "the usual suspects." If their shared perspective, so relentlessly driven in public statements and interview opportunities, were limited to the status of the very wealthy and record corporate profits, their case for the "better" could be plausibly presented. For most others, the Great Recession lingers like a form of chronic pain. That situation is ignored, unless political points are at issue.

Watching the Wisconsin election results on Fox News last night, I got the impression the only things holding our country back from a return to general prosperity were labor unions and Barack Obama. Fox's Neil Cavuto trotted out a number of CEOs who parroted this message, while not bothering to address why those interviewed were personally better off than ever.

David Rosenberg
(photo from Gluskin Sheff)

An outlook less chained to ideological imperatives, political expediency, and reality denial would provide far different information. One such individual is economist and financial strategist David Rosenberg. Once Merrill Lynch's respected voice on the economy, Rosie flew the US coop for Toronto. From this relatively sane perch at the Canadian financial firm Gluskin Sheff, he offers his opinions, which notably do not correspond to the propagandistic fiction available on your favorite American media outlet.

Zerohedge.com, an acerbic financial blog, has become something of a platform from which Rosenberg's perspective reaches money managers and amateurs with a strong interest in financial markets. Today's post featuring Rosenberg's point of view provides some deeply troubling information about the state of the US west of the Hudson River and north of 96th Street.

Here are a few salient points from the blog post:

• "The share of long-term unemployment is at its highest level since the Great Depression (42%)"
• "47% of Americans are on some form of government assistance"
• "A mere 16% of the 2009-2011 graduating class has found full-time work, while 22% are working part-time. Even those hired from 2006-2008, only 23% are working full-time."

Do you think "things are better now"? What leads you to that conclusion?

David Rosenberg Remains Realistically Gloomy on the Economy

David Rosenberg

David Rosenberg was Merrill Lynch's chief financial guru when the bull wasn't full of shit. He was generally considered a wise, sharp mind who didn't shave the truth to suit some corporate profit goal. Rosie, as he's affectionately known in financial circles, fled to his native Canada shortly after Bank of America acquired ML.

Rosenberg joined Gluskin Sheff and Associates, a Toronto-based finance firm, and continued to call 'em as he saw 'em. Rosie, as he's known among his peers, did not drink the post-Lehman Kool-Aid. He thought -- and thinks -- the US and the overall global economy are struggling mightily. He also believes they will continue to struggle for some time. His pessimism certainly has not settled well with the financial tom-tom beaters, who have tried to con retail investors and a very edgy voting public that "things were better" and that "the recession had ended over a year ago."

Rosie keeps calling Wall Street's publicity bluff. In his most recent newsletter to clients (and a recent interview with Consuelo Mack), Rosenberg talks about how the US economy is the midst of a depression. He defines his terms, brings useful evidence to bolster his points, and states his case plainly. While the news is not cheerful, it is refreshing to read economic analysis that's free of cant and that trusts the truth.

The financial blog Zerohedge.com generally publishes Rosenberg's comments. He's also an occasional guest on Bloomberg Surveillance, its excellent morning radio program. Rosie's thoughts are worth reading, worth listening to, and definitely worth thinking about.