In a must-read interview with King World News, Bloomberg Brief senior economist Richard Yamarone doesn't pull any punches:
When asked what’s really happening with the US economy, Yamarone responded, “I think people are just running out of money. We have contracting, real disposable incomes. Most of the job creation that we have is from minimum wage type jobs.”
“I’m fortunate enough to travel and speak to chambers of commerce with 300 to 500 people in the audience. They all tell me, ‘Hey, listen, I am letting go of workers. I’m hiring them back at a fraction of what I used to pay them.’
You hear from the other side, ‘Hey, I finally got a job after two years of being unemployed. I used to make $100,000 (each year), now I’m making $45,000 or now I’m working part time.’ Or (you hear), ‘I used to make $500,000 and now I’m making $200,000 or making $125,000.’....
“So you are actually seeing this collapse, contracting on a real basis, of real disposable personal incomes. If you don’t have the money, you can’t facilitate expenditures. So that’s the core of the problem. That’s what’s really going on in the US economy.
Wow, I'm impressed -- an economist who makes me feel like a bit of a softie!
(To read the rest of "Yamarone - We Are Literally Witnessing a Collapse," click here.)