The Phaserl


Your Take on the Recovery?

by Rick Ackerman, Rick

Here’s a perplexing new twist in the story of America’s supposed recovery from The Great Recession. While auto manufacturers can barely keep up with demand, sales at Wal-Mart, Macy’s and some other big retailers have gone flat. What’s going on here? The easy explanation is that auto showrooms attract a different class of shopper, one with more discretionary income. Our take, however, is that more than a few Wal-Mart shoppers who have cut back on non-essential purchases are in fact driving shiny new SUVs.

While this might seem paradoxical, there’s a simple explanation – namely, that even households that don’t have two nickels to rub together at the end of the month can easily qualify for a $40,000, five-year car loan. With interest rates as low as they are, especially for big-ticket items purchased on credit, the buy-now- pay-later engine of the U.S. economy is able to thrive even with real incomes stagnant and new employment coming mainly from minimum-wage jobs.

Read More @

Help us spread the ANTIDOTE to corporate propaganda.

Please follow SGT Report on Twitter & help share the message.

3 comments to Your Take on the Recovery?

  • Isaac

    The article presents an interesting paradox, and one that I’ve distinctly noticed myself at my place of residence.

    I live in what would be considered a typical middle class, 100-unit apartment complex in a medium-size city. I’ve lived here long enough, am outgoing enough with my neighbors, and have adequate enough powers of observation to know (as the saying goes) “who’s f-ing who and who’s getting fat.” Some would probably call that nosy. Whatever.

    The one thing that I have discovered over the last 2-3 years is the number of tenants who are now on government-subsidized housing, disability, food stamps and unemployment compensation. I also personally know several tenants who get a good portion of their food at the food pantry.

    There was a time when the parking lot was virtually empty of cars during the day. Now, the lot is pretty much full, day and night, and the once-abandoned corridors, balconies, and outside grassy areas are occupied by tenants just wasting away in Margaritaville. It’s amazing.

    As for the vehicles in the lot, THAT is even more amazing. While there’s certainly a few clunkers here and there (mine being the most obvious!), I would estimate that most of the vehicles are between 1-4 years old. And we’re not exactly talking cheapies, either. Beautiful SUV’s are a dime a dozen, and there’s two fairly new Beamers parked at any given time.

    And that is the paradox. I would imagine similar scenarios exist far and wide in the “land of opportunity.” Not a day goes by that I don’t shake my head in disbelief, asking myself over and over what will become of such people when the party finally comes to a conclusion. And do I really want to be here when it does?!

    • Harvey Wallbanger

      Very astute observations Isaac. I ran into a similar situation back in the late 1980’s with friends that proved to be an enigma. We had friends that lived a lifestyle we could only dream of with frequent vacations, a nice home, new cars and an impressive entertainment budget. Since I had a good paying job but we were raising a young family on one income I thought I must be doing something wrong and dared to ask how they did it. Their answer shocked me since they told me you don’t know how close we are to having to go to the bank to hand over the keys and walk away from everything.

      • Isaac

        I guess you would really call that a plastic lifestyle, ha? All show and no go. How pathetic and sad. Essentially, they’ve are wards of the state, whether willfully or otherwise. Just where the power-that-be want them.

        God willing, I’ll keep tight reigns on my job, my clunker, my stack, my protection, and my provisions. Oh, and my TOTAL lack of debt, thank you.

Leave a Reply

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>