relevelling of wealth

Source: The mad hedge fund trader, seekingalpha

I attended a luncheon today for old college economics professor, former Labor Secretary Robert Reich. The bad news is that we will lose another three million jobs this year, taking unemployment easily into double digits. The good news is that we are not entering another Great Depression, or even a Japanese style lost decade. We are in the midst of a cyclical recession, albeit a very deep one, from which we will emerge in 2010. Part of the problem is that the share of earnings of the top 1% of American income earners has soared from 8% in 1980 to 23% in 2006. These people don’t spend their money, they invest it, effectively removing it from the retail economy.