Obama & Biden’s “Summer of Recovery” Continues…
If this is recovery, I hate to see a Depression!
- Near 10% unemployment for months on end
- Housing starts plummeted in June
- Americans are clutching onto what little savings they have
- Consumer Confidence plunged…
No matter where they look, investors are seeing economic trouble.
Stocks and interest rates tumbled Tuesday after signs of slowing economies from China to the U.S. spooked traders who were already uneasy about a global recovery.
The Dow Jones industrial average fell 268 points, or 2.7 percent, and dropped below 10,000. The benchmark Standard & Poor’s 500 index closed at its lowest level since October.
Interest rates fell in the Treasury market after demand for the safety of government debt grew. The yield on the 10-year note dropped to as low as 2.96 percent, the first time it has fallen below 3 percent since April 2009. The yield is used as a benchmark for many consumer loans and mortgages.
The markets began the day by following Asian and European markets lower. Asian stocks fell after an index that forecasts economic activity for China was revised lower. European indexes continued the slide after Greek workers walked off the job to protest steep budget cuts.
Then, shortly after U.S. trading began, the market was hit with news that consumer confidence fell sharply this month because of worries about jobs and the overall economy. The Conference Board’s Consumer Confidence Index fell to 52.9 from a revised 62.7 in May. It was the steepest drop since February and economists polled by Thomson Reuters had forecast only a modest dip.
Nice work, Barry! He may have inherited th problem, but the Stimulus & Healthcare Spending Us Into Debt Acts are killing the private sector recovery.
On a completely related and weird note, I pulled all of my current and future 401K holdings out of stocks & bonds Sunday evening and put them into a Fixed Interest account. I just had a funny feeling that this week folks would finally realize that the worst is yet to come.
-Bruce (GayPatriot)
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I did the same thing with my investments last week. Welcome to the double dip.
Comment by TnnsNE1 — June 29, 2010 @ 6:38 pm - June 29, 2010
I hate to see a Depression
Well, put your seatbelt on – it’s going to be a bumpy ride. We may not see depression-level joblessness but, to borrow a phrase from John Derbyshire, we’re going to be bumping along the bottom for a while.
Comment by SoCalRobert — June 29, 2010 @ 8:06 pm - June 29, 2010
And for God’s sake the EUROPEANS had to try to get Obama to quit spending and try to control budgets, at the G20. It may be 20 years before the left recovers from Barack Hussien Obama.
Comment by Gene in Pennsylvania — June 29, 2010 @ 8:43 pm - June 29, 2010
[...] Canceled Because of Democrats’ New Oppressive Health Law, Thousands of Jobs Killed GayPatriot: Obama & Biden’s Summer of Recovery Continues… Founding Bloggers: What’s Wrong With This Picture? Gateway Pundit: Private Sector Lost Nearly 10 [...]
Pingback by Classic: Rick “Mr. Tea Party” Santelli Strikes Again: Stop Spending! Stop Spending! Stop Spending! (video) « Frugal Café Blog Zone — June 29, 2010 @ 9:16 pm - June 29, 2010
Well considering what has been in the news the past month, I am not surprise Consumer Confidence took a big hit. If the Economy is a based a good deal on how confident people are feeling, I don’t see it coming back for awhile.
Stability is very much out of reach and thats a key for growth.
Comment by darkeyedresolve — June 29, 2010 @ 9:50 pm - June 29, 2010
Bruce!
Bite your tongue! Lets not propogate Democrats propaganda for them.
Obama was part of the Democrat-controlled congress (they took control of both houses in 2006, not 2008) that turned economic growth and a path back to balanced budgets under Republicans into recession, financial crisis and skyrocketing deficits under Democrats.
Obama was part of the Democrat controlled congress that WITHHELD their budget from President Bush in an unprecedented move, so that Bush COULDN’T veto it, instead holding it over until January 2009 for Obama to sign.
Obama was part of the Democrat controlled congress that FILIBUSTERED reform of Fannie Mae and Freddie Mac despite dire warnings that not reigning those institutions in would CAUSE exactly the kind of financial crisis that resulted.
Obama was part of the Democrat controlled congress whose PROMISES to end the Bush tax cuts, install Cap and Trade, seize the health care industry and otherwise exponentially increase taxes and regulations CAUSED the recession in the first place — and it was the recession that in turn caused the financial crisis.
Obama didn’t “inherit” SQUAT except from himself and the Democrat controlled congress.
Comment by American Elephant — June 30, 2010 @ 2:52 am - June 30, 2010
Allan H. Meltzer is packing the Super-Size can of Whoopass today:
http://online.wsj.com/article/SB10001424052748704629804575325233508651458.html?mod=rss_opinion_main
It’s dripping with truth, which makes it hard to pick a good teaser-excerpt. Here is just the opener:
Comment by ILoveCapitalism — June 30, 2010 @ 11:34 am - June 30, 2010
Actually, if they still measured unemployment today like they did in the GD, we would have a 15-20% unemployment rate. Already, i.e., before it gets that much worse in the next crisis. I believe the GD topped out around 25%.
Comment by ILoveCapitalism — June 30, 2010 @ 11:36 am - June 30, 2010
Because the OP still avoids posting actual data, and I’ve shared it with the blog before, I’ll do so again.
Estimated Impact of the American Recovery and Reinvestment Act on Employment and Economic Output
Raised the level of real (inflation-adjusted) gross domestic product (GDP) by between 1.7 percent and 4.2 percent,
Lowered the unemployment rate by between 0.7 percentage points and 1.5 percentage points,
Increased the number of people employed by between 1.2 million and 2.8 million, and
Increased the number of full-time-equivalent (FTE) jobs by 1.8 million to 4.1 million compared with what those amounts would have been otherwise. (Increases in FTE jobs include shifts from part-time to full-time work or overtime and are thus generally larger than increases in the number of employed workers.)
So, without the stimulus, it would have been worse. That was the Republican preferred plan.
Comment by torrentprime — June 30, 2010 @ 2:48 pm - June 30, 2010
Um, torrent, I find it hard to believe those numbers when private sector employment is on the wane.
So, repeat your talking points until you’re blue in the face and explain why the number of empty store fronts in Los Angeles increases on a daily basis.
Comment by B. Daniel Blatt — June 30, 2010 @ 3:19 pm - June 30, 2010
There is a lot of info out there that the government manipulates the stats. http://www.shadowstats.com/ is a good place to start.
But, whatever real GDP and jobs gains have been, they’ve been paid for with borrowed money… and are therefore unsustainable. False growth, that must later crash. Way to go, Bammy and Talking points.
Comment by ILoveCapitalism — June 30, 2010 @ 4:19 pm - June 30, 2010
Even the boob Biden said they created or saved 2.0 -2.5 million jobs, thats a margin of error of 20% for Gods sake.
Comment by Gene in Pennsylvania — June 30, 2010 @ 4:40 pm - June 30, 2010
Hey, torrentprime! Did you actually READ your citation?
Looking at recorded spending to date as well as estimates of the other effects of ARRA on spending and revenues, CBO has estimated the law’s impact on employment and economic output using evidence about the effects of previous similar policies on the economy and using various mathematical models that represent the workings of the economy.
So no actual data, just “mathematical models”. But it gets better.
Data on actual output and employment during the period since ARRA’s enactment are not as helpful in determining ARRA’s economic effects as might be supposed, because isolating those effects would require knowing what path the economy would have taken in the absence of the law.
Did you see that? They admitted they are NOT looking at the actual data, but instead are running mathematical models based solely on spending! They are EXCLUDING actual data, and saying it’s “not helpful”!
And then, torrentprime tries to bleat this:
So, without the stimulus, it would have been worse.
But the CBO’s own blog that he cited says this:
Because that path cannot be observed, there is no way to be certain about how the economy would have performed if the legislation had not been enacted
Your own source contradicts your statement, talkingpointsprime.
And here’s another one that shows not even the CBO itself is trying to push your lies.
See, the CBO doesn’t actually count jobs created. Instead, it uses models that assume that putting taxpayer money into the system results in additional demand, additional spending, and, consequently, additional jobs. Before the stimulus passed, it used these models to predict that the stimulus would create jobs. And now, in analyzing its effects, it’s using those same models to estimate that it has created jobs. But because the CBO relies on slightly updated versions of the same, original models throughout the process, it wouldn’t necessarily detect the fact that the stimulus didn’t work if that were the case.
Stimulus-boosters have basically ignored this. But the CBO, to its credit, has been fairly forthcoming about its methods and their limitations. In response to a question at a speech earlier this month, CBO director Doug Elmendorf laid out the CBO’s methodology pretty clearly, describing the his office’s frequent, legally-required stimulus reports as “repeating the same exercises we [aleady] did rather than an independent check on it.” CBO tweaks its models on the input side, he says—adjusting, for example, how much money the government has spent. But the results the CBO reports—like the job creation figures—are simply a function of the inputs it records, not real-world counts.
Following up, the questioner asks for clarification: “If the stimulus bill did not do what it was originally forecast to do, then that would not have been detected by the subsequent analysis, right?” Elmendorf’s response? “That’s right. That’s right.”
Also, you’ve tried this game before, and you were slapped. You ran away. You were such a pathetic coward that you wouldn’t stay around to argue when confronted with facts about what the CBO itself was saying that contradicted your talking points.
Comment by North Dallas Thirty — June 30, 2010 @ 4:40 pm - June 30, 2010
Predictions for Fridays June unemployment report?
Mine….10.1 % -210,000 jobs.
Summer of recovery Obama style.
How come only one liberal comes in here anymore??
Comment by Gene in Pennsylvania — June 30, 2010 @ 4:41 pm - June 30, 2010
My 401(k) got wiped-out and never recovered…and now the economy’s so bad I can’t afford to put anything aside. But what’s the point, the government’s planning to confiscate all private pensions, 401(k)s and Roth IRA anyway to recoup the underfunding for union and public-sector pensions. Argentina did it and there was NOTHING it’s citizens could do about it. The Argentine government even seized the balances in peoples checking and savings accounts.
Gasoline, diesel fuel and ammunition might be your best investment…and stored buried in your own backyard.
Comment by Ted B. — June 30, 2010 @ 4:44 pm - June 30, 2010
Obama has hired the Bush General from Iraq to pull his stones out of the fire in Afghanistan. Obama has mirrored most of Cheneys anti terror positions, esp now keeping Club Gitmo open indefinitely. Who from the past Bush administration is available to help Obama with the gulf oil spill and the horrible economy? It’s time conservatives start helping out these boobs instead of just mocking them.
Comment by Gene in Pennsylvania — June 30, 2010 @ 4:46 pm - June 30, 2010
And again, the reason the puppet torrentprime is repeating his lies is very straightforward; those are the talking points the Obama Party is pushing out.
Comment by North Dallas Thirty — June 30, 2010 @ 4:50 pm - June 30, 2010
[...] Nice Deb: Monday News Round-Up and White House Denies John Kyl’s Immigration Claim GayPatriot: Obama & Biden’s Summer of Recovery Continues… Michelle Malkin: Hasn’t the SEIU wasted enough of its members’ money? and Club Fed for Illegal [...]
Pingback by Remember in November: 11 Reasons to Vote for Democrats in November (video) « Frugal Café Blog Zone — June 30, 2010 @ 6:08 pm - June 30, 2010
torrenprime carefully avoid actual data.
Comment by ILoveCapitalism — June 30, 2010 @ 8:18 pm - June 30, 2010
(try again, sorry) torrentprime carefully avoids actual data.
Comment by ILoveCapitalism — June 30, 2010 @ 8:18 pm - June 30, 2010
It’s cute the way you guys pretend the talking points torrentprime routinely parrots are worth responding to
Comment by V the K — June 30, 2010 @ 10:43 pm - June 30, 2010
You should be trading market as if there were a depression. Check the indices of the major western nations and China. Exiting bonds was not a good solution. Long term bonds declined to 1% during the Great Depression. Deflation is what should concern you, not inflation.
Comment by RJLigier — July 1, 2010 @ 2:43 am - July 1, 2010
1) Deflation in asset prices? Maybe. Depending on the asset, and on the speed of the Fed’s depreciation of the dollar. Bonds are in a bubble as we speak (the flip side of artificially low interest rates). It’ll be “fun”, when that one bursts. But the GD was different from today, because the Fed could not depreciate the currency by endless printing of dollars. Today it can. Roosevelt depreciated the dollar from 1/20 oz. of gold to 1/35 oz. of gold, but, the dollar did remain a fixed amount of gold; it was not further debased.
2) Deflation in commodities? BWAHAHAHAHAhahahahaha! Two words for you: emerging markets.
As for government-reported consumer inflation (CPI), yes that seems tame at the moment. But the inflation in commodity prices (ignore the daily or monthly shifts; look at a long-term chart) will eventually feed through to consumer prices. Also remember that the government manipulates the CPI with a downward bias; again see http://www.shadowstats.com.
Comment by ILoveCapitalism — July 1, 2010 @ 10:33 am - July 1, 2010
[...] in 2009 and Monday News Round-Up and White House Denies John Kyl’s Immigration Claim GayPatriot: Obama & Biden’s Summer of Recovery Continues… Michelle Malkin: Hasn’t the SEIU wasted enough of its members’ money? and Club Fed for Illegal [...]
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