Monday, April 8, 2013

On the economic recovery

Zero Hedge has a guest post today that presents three macro-level reasons why the US economy will not recover in the near future (the most recent jobs report and the .4% first quarter annualized GDP figures give lie to the view that the economy is in recovery).  It's excellent and spot-on in my opinion.  The first reason is the crumbling protection of property rights which, at its core, is really the only right that matters; all other rights can be derived from property rights.  From the post:
What do you really own? The depositors in Cyprus believed they owned what was in their bank accounts. They found out otherwise. Bondholders of General Motors believed they were protected by bankruptcy laws when GM was bankrupted by the government. They found out otherwise. Do you own your pension plans and IRAs. Well you always believed you did except now there is talk about confiscating a portion or all of these funds.
Strongly recommended; find it here.