It is astounding how many economists, government officials, and Wall Street strategists construe the current economic conditions as evidence of a bona fide recovery. It is a testament to the power of the rose colored glasses handed out by our nation's leading universities that such a feeling could be widely held despite the clear and present danger that compounds daily. The myopia leads us to enact policies that actually exacerbate our problems. The "remedies" are postponing, perhaps indefinitely, a true recovery.
The oracles who have described the nature of this imminent recovery do so based on their conviction that consumer spending is slowly returning to levels that existed prior to the recession. New data released today seems to support this view, with consumer spending up 0.5% in January.
However, missing from their analysis is any plausible explanation as to why consumers will be able to sustain such spending given the plunge in income and credit, and the lack of available savings. In fact, the same January spending report showed that personal income increased by only 0.1%, while the savings rate slowed to the smallest since 2008.
I would challenge those who fantasize about a consumer-led recovery to describe where the spending money will come from. Most consumers are tapped out, millions are unemployed, and home equity has been wiped out. The only reasonable thing for them to do is to pay down debt and sock away as much money as possible to rebuild their savings.
More Here..
Oh, it's going to get a lot worse than that.
ReplyDeleteWhat do you think the unemployment rate will be like by end of 2011?
Not good.
10:28 Job report is due this week and the figures will shock all you idiots here. Unemployment rate has fallen to 7.2%.....don't believe me? then wait for the report the you will ask me how I got the info......prepare yourself to be shocked, this is just the beginning of the recovery, the economic boom is just around the corner.
ReplyDelete11:31...Not going to call you names...But I must point out in all honesty that the governement has a verrrrrry long track of falsifying numbers and stats to fit whatever they want the people to believe...So lets say UE falls to 1% do you actually believe it or are you a troll?
ReplyDelete10:28 , I think you're wrong. It's getting better as the elites are getting more and more rich and it's their money keeping the worlds economies running. No-one cares about the poor, let them die, just as long as the rich keep the lifestyle.
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ReplyDelete11:31,
ReplyDeleteShort-term (next two or so years). sovereign debt, mortgage resets, implosion of commercial real estate (in progress), diminishing government revenue at all levels, make your claim of recovery nothing more than pure folly.
You are wrong, my dear sir (or madam). Very wrong!
1131 Do your numbers have anything to do with the 1.2 million people denied an extension for unemployment benefits? Maybe so. Now go get ready for school or you will miss your bus. Whats it like in Junior High school these days?
ReplyDeleteI agree with 4:45, the first thing I thought of when I read 11:31 was of course the already fake number will drop, over a million people currently recieving unemployment compensation are being kicked to the street and since they are no longer collecting a check they are now considered EMPLOYED by the Gov idiots that make this BS up. 11:31 do your research before you speak.
ReplyDelete11:31, please, when I read what you have stated, I am embarassed for you. If you believe that trash you are delusional. I have seen to many times when the gov't has misled or just plain lied.
ReplyDeleteI want someone to "show" me the improvement in mfg. Things are not getting better.
11.31
ReplyDeleteI have only one question for you Are you a troll or a Simpleton ?.From your statement you are either one or the other.A troll is bad enough but I hope you are not one of those sheep touting simpletons who fail to grasp current realities.If so your in for major disappointment.
Pleasant Dreams.
Ever heard this one?
ReplyDelete"There are lies, more lies and stats"
One morning I read here the jobless rate was up and later that morning on MSM radio, I was told the rate was down by the same percentage!
The lairs want you to believe everything is getting better so you'll get back out there and start spending again.
There is an electronics store near me. They have a 600 watt solar panel on display that was $1400.00 about a year ago, now the same panels are $600.00 They are basically selling it at cost and they are still not moving. The Post of Long Beach is not far away and I'll bet it's still full of new, 2009 cars, baking in the sun and rotting away in that salty air.
Sure thing Jim Bob, everything's just fine.
It is ironic that the man-on-the-street in any town in Ohio has a better understanding of the harm done to the U.S. economy by the trade deficit than do the experts who study the problem. The ordinary citizen knows that goods manufactured overseas and sold in the U.S. reduce output among U.S. manufacturing firms. The ordinary citizen knows that unbalanced trade – more imports than exports – means that foreign producers are, on net (using Greenspanese) displacing and replacing U.S. firms and U.S. manufacturing jobs.
ReplyDeleteread more here:
http://economyincrisis.org/content/debunking-economists-current-conventional-wisdom
@11:31.............
ReplyDeleteCensus hires I presume?
@11:31.............
ReplyDeleteCensus hires I presume?
I actually agree with 11:32 , my government hired Obama supportin' Nemesis, small servant of the fealty stone of the Sith Lords, probably for a pittance, that the 'Economic Boom' is right around the corner.
ReplyDeleteEconomic Boom. Heh, you're damn funny man. Ahehahea. Economic Boom. AHehahehaha.
That's like 'Trickle down economics'.
AhehAHAHehAHea.
Oh you're a regular riot buddy.
Ahehahehahaa.
Boom.
LOL.
i fell for the trickle down economics. I will not fall for this mess. Im prepared
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