TOTAL CREDIT MARKET DEBT AS % OF GDP IS FALLING, WE HAVE RECOVERY???

Great bull market that really took off in 1990's and topped in 2007 (new high, but NEW high for Transports JUST achieved!).......was helped by EXPANSION of total debt.......so what is current contraction doing?

Corporate profits soaring? 9.2% unemployment, wages stagnant, home values and equity collapsed....this is one crazy mixed up recovery which began in June of 2009, yes recovery is now 3 years old!!!!!!!!

And we are to believe that a NEW BULL MKT has formed, can last for many more years, yet there has been NO recovery in the largest segment of the economy HOUSING, and the job market remains challenging? And prices for things are rising, food, energy and health care.

There is a SMALL MINORITY who have their wealth in STOCKS, the avg American has most of its wealth concentrated in their homes, no wonder their is a disconnect between the message from stocks and the reality for most people.

Yes above chart is STARK contrast to what you are being told, what book explains "economic expansion" comes from a contraction of credit? And we are a FAR CRY from the historic norm, and once these trends begin, they usually don't end until most of abuse is unwound....there may be nothing FED and govt's can do, except make a bad situation worse.

There are MILLIONS that have left the stock market for good, that is what 2 BRUTAL Bear Markets over 10 years will do to investors heads.

These same investors have run into bonds accepting minuscule returns. BUT of you are a saver...you get NOTHING!!! There IS a downside to current FED 0% policies which by the way have done little to help anybody except the INSIDERS and the RICH who have MOST of their wealth in stocks.

And NO ONE seems interested in bringing ANYONE to justice who by their outright greed and dishonesty got us into this mess, not ONE SINGLE ARREST.

Now they are fist pounding and arguing about what to do with debt ceiling and soaring govt debt, but 20% of our economic activity comes from govt assistance of one form or another.

Rather than actually deal with the issues, each side is posturing and any deal will be hollow, any CUTS in govt spending will hurt economy.IT IS HOWEVER GROSS GOVT WASTE and excessive spending that is the problem....and all they will probably do is keep kicking that can down the road.

2012 is election year, and to get re-elected is going to be the priority, each side will want to be seen as victorious and each one taking care of its core constituents.

The government is floating its out of control deficits by selling 2, 5 and 10 year notes mostly with he 10 year UNDER 3% !!!! There seems to be NO FEAR from the purchasers of the debt? OH it' s been mostly the Federal Reserve.

WHAT would happen if the COST TO FUND THE DEFICITS ROSE EVEN A LITTLE? this is what has happened to some European nations, who control their own currency.

We won't solve the current crisis, it will just sound like it, any message won't be for real change that helps the little guy but an effort to BOOST the stock market some more, from its already historic gains....in the face of the WEAKEST RECOVERY FROM RECESSION IN HISTORY?!!

The deal that might be made would lower debt let's say by $400 B a year (most aggressive plan), but where will it come from? will it start right away? yes you are catching on now....it will be over a 10 YEAR SPAN and won't effect anything until after elections....

And what about the level of yearly deficits going forward? WELL it seemed bad during Bush years as it approached $600B, but we are now nearer to $1.5 TRILLION a YEAR......I do not pay much attention to the news or how close the 2 sides might be to striking a deal....in the end I don't expect it to help the REAL economy, it's all for show with not much go and anyways.....the place we find ourselves is that fork in the road where we get in between the ROCK and the HARD PLACE.

Expect this DRAMA to be played out to the last minute and a HUGE SIGH of relief will be shouted from the highest place on earth and the NYSE, and we can all rejoice, and praise these fearless leaders for averting a calamity as the status QUO continues....being kicked down the road...waiting for someone else to figure it out.

In the meantime, corporate profits can soar to the moon, as they don't hire too many workers, not pay them too much, and use their overseas buddies to keep costs down...as America keeps getting its blood sucked out of its body and a corpse and flock of zombies will roam the land wondering what the f happened. The noise from the partying heard from the Hampton's and beyond will be deafening....but mark my words, all good things come to an end, and that won't be pretty either when the music stops and the momo crowd sees very few chairs.

Duratek