Ed Driscoll

As If You Weren't Depressed Enough Already

Well, here’s a cheery headline on Drudge to kick off your summer:

It’s from this CNBC story, whose actual headline is a variation on the dreaded “unexpectedly” riff we’ve all become so accustomed to: “Wall Street Baffled by Slowing Economy, Low Yields: Trader:”

Wall Street is having a hard time figuring out what to do now that the U.S. economy appears to be sputtering and yields are so low, Peter Yastrow, market strategist for Yastrow Origer, told CNBC.”What we’ve got right now is almost near panic going on with money managers and people who are responsible for money,” he said. “They can not find a yield and you just don’t want to be putting your money into commodities or things that are punts that might work out or they might not depending on what happens with the economy.

“We need to find real yield and real returns on these assets. You see bad data, you see Treasurys rally, you see all bonds and all fixed-income rally and then the people who are betting against the U.S. economy start getting bearish on stocks. That’s a huge mistake.”

Stocks extended losses after the manufacturing fell below expectations in May and the private sector added only 38,000 jobs during the month.

“Interest rates are amazingly low and that, thanks to Ben Bernanke, is driving everything,” Yastrow said. “We’re on the verge of a great, great depression. The [Federal Reserve] knows it.

“We have many, many homeowners that are totally underwater here and cannot get out from under. The technology frontier is limited right now. We definitely have an innovation slowdown and the economy’s gonna suffer.”

From Townhall, here’s the video of Yastrow’s quote:

And for more fun economic news:

The Obama administration said Wednesday that the government will lose about $14 billion in taxpayer funds from the bailout of the U.S. auto industry.In a report from the president’s National Economic Council, officials said that figure is down from the 60 percent the Treasury Department originally estimated the government would lose following its $80 billion bailout of Chrysler and General Motors in 2009.

A billion here and billion there, and pretty soon you’re talking about real money. Dive in!

Update: Your scary-ass charts of the week: “In pictures: Why debt discussions won’t die down anytime soon.”