Depression may be the reality of the economy regardless of the spin

Washington's Blog has a great article regarding the fragile nature of the economy and the effort to fool the voting public into believing we are not experiencing a great depression. 

Washington makes case that we are in a depression at Washington's Blog

In addition, the percentage of Americans who owned houses during the 1930s was much lower than today, which means that a larger portion of the public is being hurt from falling home prices today as compared to the Great Depression.


Meredith Whitney, Nouriel Roubini (and here), Zillow, Case-Shiller and even S&P have been calling a double dip in housing.

States and Cities In Worst Shape Since the Great Depression
States and cities are in dire financial straits, and many may default in 201
California is issuing IOUs for only the second time since the Great Depression
Things haven't been this bad for state and local governments since the 30s.
Loan Loss Rate Higher than During the Great Depression

As I mentioned in a recent blog, Economy still in deep, we are not out of the woods yet.  The economy is not anywhere near recovery as we have heard.  There is no way to burn off all the "toxic" debt in the economy quickly.  The administration wasted over 2 years slow dancing with the banks.  The banks have been giving unlimited supply of cash at virtually zero percent interest.  They are able to buy bonds or make quick use of this free money to increase their profits. 

Does it make any sense for the banks to be making record profits with all the losses yet to be marked on their books? 

I don't think these excessive profits benefit any one (other than the banks) because they have just left the country in the dust.  USA to the rescue for the "almighty" too big to fail banks as they pull off the greatest heist with in  memory. The banks that are likely insolvent are being allowed to operate and make billions in profits making no accounting for the huge foreclosure losses.   
Washington has put together an excellent article that can be viewed in full here.