"the recession is starting to take a toll"
"they’re in a position, for the most part, to weather the storm"
"Even if the recession begins to ease"
What do you mean IF?? My DAMN NEWSPAPERS have been saying it was ending?
Related: The Fake Recovery
"Job seekers should look ahead, and perhaps turn to ‘Dummies’ series for help" by Michelle Singletary, The Washington Post | August 2, 2009
This is the only recession since the Great Depression that has wiped out all job growth from the previous business cycle, according to the Economic Policy Institute. Further, with less than one job opening for every five job seekers, people are getting stuck in unemployment for long periods: 29 percent have been jobless for over half a year.
What is with the WORD GAMES?
"For every job that becomes available, about six people are looking"
Subtely deceptive, isn't it?
I rest my case.
In an increasingly crowded field of job applicants, how can you make your resume rise to the top of the pile?
For one, get some help. For $16.99 you can find some great tips and strategies for landing a job in “Job Hunting for Dummies’’ by Max Messmer, chairman and chief executive of Robert Half International, a large staffing firm.
So NOW you are an IDIOT to the AmeriKan MSM, huh, 'murkn?
Well, at last you ARE NOT DUMB ENOUGH to buy ROT GUT NEWSPAPERS like ME!!!!!!
“Job Hunting for Dummies,’’ this month’s Color of Money Book Club selection, packs a lot of information in 358 pages....
I'd rather keep the $20 dollars (sales tax just went up here, readers).
It may restore your hope....
--more--"
Here are some things that won't: GM Gives America the Tail Pipe
IBM Moves 5,000 U.S. Jobs to India
China's Manufacturing Jobs Surged As American Jobs Disappeared
But we are BRIMMING with hope, according to the s*** war daily!
"Hopeful outlook leads to best July in years
New hope for the economy gave the market its best July in 20 years. Investors placed big bets the profit machine at US companies will rev higher and that the recession is easing its grip. The Dow surged 725 points in July. But the economy still faces hurdles. Analysts worry that difficulty borrowing, unemployment, and a weak housing market will choke growth.
--more--"
Have you HAD ENOUGH of the COULD BE, IF, MAY BE, BUT, YET, STILL, HOWEVER "journalism style," readers?
In my COLLEGE WRITING CLASSES they said those were BAD WORDS for a REPORT!!!!
And ABOUT THOSE JOBS (not in the business section, either):
"Extended unemployment aid running out" by Erik Eckholm, New York Times | August 2, 2009
NEW YORK - Over the coming months, as many as 1.5 million jobless Americans will exhaust their unemployment insurance benefits, ending what for some has been a last bulwark against foreclosures and destitution.
And THEN the GOVERNMENT and MSM will claim UNEMPLOYMENT is DOWN and the economy is recovering!!!! See how the DECEPTIONS WORK?
Because of emergency extensions already enacted by Congress, laid-off workers in nearly half the states can collect benefits for up to 79 weeks, the longest period since the unemployment insurance program was created in the 1930s. But unemployment in this recession has proved to be especially tenacious, and a wave of job-seekers is using up even this prolonged aid.
They write it like WE DON'T KNOW WHAT IS GOING on and WE ARE 'TOO-PID!!!
Tens of thousands of workers have already used up their benefits, and the numbers are expected to soar in the months to come, reaching a half-million by the end of September and 1.5 million by the end of the year, according to new projections by the National Employment Law Project, a private research group.
But the ECONOMY is RECOVERING and their is HOPE out there!!!!
Unemployment insurance is now a lifeline for 9 million Americans, with payments averaging just over $300 per week, varying by state and work history. While many recipients find new jobs before exhausting their benefits, large numbers in the current recession have been unable to find work for a year or more.
I'm telling you, I'm TIRED of the F***ING INSULTS!!!!!!!!
Calls are rising for Congress to pass another extension this fall, possibly adding 13 more weeks of coverage in states with especially high unemployment. As of June, the national unemployment rate was 9.5 percent, reaching 15.2 percent in Michigan. Even if the recession begins to ease, economists say, jobs will remain scarce for some time.
But you can EAT a BIG SHIT PILE of Boston Globe HOPE, readers!!!!
Why? If the economy is coming back.... Economic Recovery Canceled
And it is sure looking like SEPTEMBER is the KEY!!!
We are going to get MARTIAL LAW, MASS VACCINATIONS, WAR with IRAN, and ECONOMIC COLLAPSE!
For many desperate job seekers, any extension will seem a blessing.
But FULL of HOPE!!!!!!!
Pamela C. Lampley of Dillon, S.C., said she sat outside the post office last month and cried because “it was the first Wednesday in quite some time that I’ve gone to the mailbox and left without an unemployment check.’’ The jobless rate in her state is 12.1 percent.
We want JOBS, not HANDOUTS that are RUNNING UP DEBT to USURIOUS LENDERS so we --if we can get a McJob -- can PAY INTEREST BACK to them for being so nice to us!!
Lampley, 40, who is married with three children, lost her job as a human resources officer in January 2008 and had been receiving $351 a week, which covered the groceries and gas. Even so, she and her husband, who works as a machinist, were sinking into debt. Now, still poorer, she feels devastated because they cannot buy their son a laptop to take to college and she cannot give her 9-year-old son money for the movies.
Then you are a BAD, BAD PARENT! Isn't that the TONE?
Btw, that SURE IS DESPERATION, isn't it?
I thought something like HUNGER might be wht they were talking about; silly me.
In Ohio, where unemployment is 11.1 percent, Cathy Nixon, 39, a mother of four teens from Lorain, has been out of work for much of the time since June 2007, and her benefits - $313 a week - run out in September. Nixon is fighting foreclosure and said she feared that when the benefits end, “we’ll be homeless.’’ She was unable to afford summer camp and baseball activities for her children, despite scrimping on basics.
Hey, BANKS GOT TRILLIONS! Talk to them. Another "DESPERATE" family!
Representative Jim McDermott, Democrat of Washington and chairman of the House Subcommittee on Income Security and Family Support, said he would introduce a bill in September to provide another 13 weeks of coverage in states with unemployment rates of 9 percent or higher. “Legislators will line up quickly when they start getting calls from desperate constituents,’’ he said in a phone interview.
PFFFFTTTT!
Yeah, right, Jim, like they listen to us on everything else?
We want SINGLE-PAYER HEALTHCARE, we don't get it.
We want AN END to the LYING OCCUPATIONS and WARS, we get MORE!
We want NO MORE BANK BAILOUTS or WAR WELFARE and we GET MORE!
The ONLY THING you guys seem to understand is this:
The cost would be $40 billion to $70 billion, but the expense would be temporary, he said.
Why the worry? I mean, the BANKS GOT TRILLIONS, no questions asked and no concerns given (save the lip-service shit served to the Amurkn people)!
Some business groups remain skeptical. Douglas Holmes, president of UWC, a group in Washington that represents businesses on unemployment issues, said that there were early glimmers of economic progress and that it was premature to extend benefits again. The money might be better spent, Holmes said, creating jobs and training people to move into emerging industries.
Well, now you know why they can't do that; you saw the links above, right?
Traditionally, many economists have been leery of prolonged unemployment benefits because they can reduce the incentive to seek work.
You know, like the STOCKS and BONDERS!
But that should not be a concern now, because jobs remain so scarce, said Lawrence Katz, a labor economist at Harvard.
Oh, a HA-VAHD INSULT, too, 'eh?
See: The Harvard Haven
So WHEN is someone going to CARE ABOUT YOU, American?
For every job that becomes available, about six people are looking, Katz said. “Unemployment insurance gives income to families who are really suffering and can’t find work even if they are hustling to look,’’ he said. With the economy still listing, he added, a temporary extension can provide a quick fiscal stimulus.
I'm sick of being lied to and looted, how about you, America?
And, Katz said, when people exhaust unemployment and health insurance, many end up applying for disability benefits, which become a large, unending drain on the Treasury.
Really, America, do you NEED YOUR NOSES SHOVED in THIS SHIT?
Un-f***ing-believable!!! BUT 24 TRILLION DOLLARS for LOOTING BANKS is NO PROBLEM, 'eh?
NO WONDER NO ONE BUYS the BOSTON GLOBE anymore!!!!
Lampley, whose benefits have ended, described the tough job market. She used to make nearly $15 an hour and has unsuccessfully sought office and clerical work at $8 an hour. Crouse said that even if new building projects were planned, construction slows in the winter cold.
Gee, I wonder why they can't find work: Sunday Globe Insults: Front-Page Funeral
And Nixon said that she had interviewed endlessly for jobs in real estate and office work and that even her teenagers could not find fast-food jobs because laid-off adults were filling them.
So I gotta go over to the Wendy's, huh?
F*** you and YOUR VALUE SYTSEM, s***ter!
--more--"
Here is how you GET that PLUM JOB, readers:
"The truth about grit; Modern science builds the case for an old-fashioned virtue - and uncovers new secrets to success" by Jonah Lehrer | August 2, 2009
.... Psychologists have come up with a term to describe this mental trait: grit. Although the idea itself isn’t new - “Genius is 1 percent inspiration and 99 percent perspiration,” Thomas Edison famously remarked - the researchers are quick to point out that grit isn’t simply about the willingness to work hard. Instead, it’s about setting a specific long-term goal and doing whatever it takes until the goal has been reached. It’s always much easier to give up, but people with grit can keep going.
Have you HAD ENOUGH INSULTS this Sunday morning, readers?
Have I made my point?
While stories of grit have long been associated with self-help manuals and life coaches - Samuel Smiles, the author of the influential Victorian text “Self-Help” preached the virtue of perseverance - these new scientific studies rely on new techniques for reliably measuring grit in individuals.
Tell it to the looting legislators of my state, s***ter!
Pigs at the State Trough
A Slow Saturday Special: Statehouse Slush Fund
Biotech Giveaway Was Borrowed Money
Massachusetts Residents Taken For a Ride
Slow Saturday Special: Day at the Movies
How many times I gotta put 'em up?
I say we CUT THEM off and let them HELP THEMSELVES!!
As a result, they’re able to compare the relative importance of grit, intelligence, and innate talent when it comes to determining lifetime achievement. Although this field of study is only a few years old, it’s already made important progress toward identifying the mental traits that allow some people to accomplish their goals, while others struggle and quit. Grit, it turns out, is an essential (and often overlooked) component of success.
Yup, FAILURE is ALL ON YOU no matter what the circumstances or how far the state has its nose up Zionist ass.
“I’d bet that there isn’t a single highly successful person who hasn’t depended on grit,” says Angela Duckworth, a psychologist at the University of Pennsylvania who helped pioneer the study of grit. “Nobody is talented enough to not have to work hard, and that’s what grit allows you to do.”
Thus, if you are a "loser" you don't have grit, s***-eating 'murkn!
NEVER MIND the OUTSOURCING and OFFSHORING of JOBS while ILLEGALS grab up the jobs "you don't want!"
The hope among scientists is that a better understanding of grit will allow educators to teach the skill in schools and lead to a generation of grittier children.
Oh, MORE HOPE!!!
And the RANK AGENDA-PUSHING STINKS!!!!
So WHY do we need GRITTIER KIDS?
Parents, of course, have a big role to play as well, since there’s evidence that even offhand comments - such as how a child is praised - can significantly influence the manner in which kids respond to challenges.
Yup, BLAME PARENTS, you despicable piece of s***!
Related: Slow Saturday Insult: Supermarket Globe
The Women of Worcester and Other Sick Stories From New England
And it’s not just educators and parents who are interested in grit: the United States Army has supported much of the research, as it searches for new methods of identifying who is best suited for the stress of the battlefield.....
Oh, NOW we see the REASON for this AGENDA-PUSHING PIECE of CRAP!!!!!!
For the COMING WORLD WARS of ENDLESS DURATION!!!!
Besides, why do you need grit?
I've been hearing NOTHING but GOOD NEWS on the economy!
"Slump in economy is slowly abating; GDP 2d quarter beats projections" by Shobhana Chandra, Bloomberg News | August 1, 2009
"The Commerce Department’s figures yesterday, which included benchmark revisions to past years, showed that GDP has tumbled 3.9 percent since the second quarter of last year - the biggest drop since quarterly records began in 1947. GDP has fallen four straight quarters, the longest ever"
Hey, what is ONE MORE LYING HEADLINE and INSULT, 'eh, America?
WASHINGTON - The worst US economic slump since the Great Depression abated in the second quarter as government spending programs started to kick in, while the deepest retrenchment by consumers since 1980 augured a muted recovery.
Gross domestic product shrank at a better-than-forecast 1 percent annual pace after a 6.4 percent drop the prior three months, Commerce Department figures showed yesterday in Washington....
Commerce said, huh?
Related: Commerce Department Lies About Economy
Government Continuously Lying About Economy
April's Economic Showers
Economic Double-Speak
The First Lies of the Day
Also see: Boston Globe's Manufactured Insults
Grain of salt, please. I'll suck on it while I wait for the "revisions!"
Stabilization in homebuilding and the liquidation of unsold goods sets the stage for gains in GDP starting this quarter, analysts said.
And if we don't make 'em, they will lie about them.
At the same time, rising unemployment and weakening income growth threaten to erode household finances; the International Monetary Fund yesterday said policy makers must be ready to employ further stimulus if needed.
Oh, so means ANOTHER RIP OFF JOB coming, Americans!
Why would we need another stimulus if the economy is mending?
SICK of the LIES YET?
“We’re heading to a sluggish recovery,’’ said Nigel Gault, chief US economist at IHS Global Insight in Lexington, Mass. “We’ll get more support from government programs in the second half, but if you want a strong recovery you need a strong consumer, and we are not seeing that.’’
Stocks and treasuries gained and the dollar remained lower against the euro after the report....
Related: China Comes A-Callin'
Market Review: Weakening Dollar, Rising Urban Unemployment
Government spending rose at a 5.6 percent pace last quarter, the most since 2003, as President Obama’s $787 billion stimulus program began to take effect. The funds are aimed at helping states retain workers, financing infrastructure projects, and reducing tax payments.
Second-quarter profits reported by companies from Caterpillar Inc. to Dow Chemical Co. have reinforced signs the slump is coming to an end.
Blah, blah, blah, blah!
The Commerce Department’s figures yesterday, which included benchmark revisions to past years, showed that GDP has tumbled 3.9 percent since the second quarter of last year - the biggest drop since quarterly records began in 1947. GDP has fallen four straight quarters, the longest ever.
What's that?
PFFFFFFFFFFTTTTTT!!!!
"More signs of recovery in Mass.; Growth predicted for Bay State in university report" by Robert Gavin, Globe Staff | August 1, 2009
And I predict I will be the King of England.
Ooops.
A new report is offering more evidence that the Massachusetts economy may have seen the worst of the economic downturn.
BUUUUUUUUTTTTTT.....
The state’s business climate is poised to grow weakly in the second half of the year after the pace of decline slowed sharply in the second quarter, the University of Massachusetts reported yesterday.
Oh, ship stopped sinking, did it?
The state economy shrank at a 1.6 percent annual rate in the second quarter, which ended June 30, after contracting at a 4 percent rate in the first quarter, according to UMass.
Need I even say it?
Same people who hid a recession from you for ten months; any coincidence?
The US economy shrank at a 1 percent annual rate in second quarter, compared with a revised 6.4 percent rate of contraction in the first, the Commerce Department said yesterday.
The Massachusetts economy, which has been shrinking for a year, “appears to be at or near the bottom’’ and “will begin to expand (or may have already begun to expand) this summer,’’ UMass said in its report. UMass projects the state economy will grow at an annual rate of just below 1 percent in the next six months.
Look I LIVE HERE and THESE GUYS are FULL of S***!!!!!!!!!
That growth rate won’t be strong enough to stop unemployment from rising as employers meet increasing - but weak - demand by improving productivity of existing workers rather than hiring new ones, said Alan Clayton-Matthews, the UMass-Boston professor who prepared the report....
Then THERE IS NO RECOVERY!!
If we are STILL SHEDDING JOBS then YOU ARE LYING, s***ter!!!!
Meanwhile, the s***-slurper who still has a job is going to be worked even harder so companies can turn buku profits.
Stoo-pid slave, youse!
“The Massachusetts labor market is still suffering, and job losses are expected throughout the second half of the year,’’ Clayton-Matthews said. “However, the pace of job loss should decline significantly.’’
And THAT'S WHY you should suck up this pile of Globe s***, 'murkn!
The rate of job losses has already begun to slow.
Yup, "LESS WATER COMIN' IN the BOAT, Cap'n Smith, so it looks like we won't need that CQD distress call after all" -- deckhand on the Titanic around 1 a.m.
In the second quarter, the state shed an average of 2,600 jobs a month, compared with more than 11,000 a month in the first quarter, according to state labor statistics.
And yet here GREEN JOBS in the TENS and HUNDREDS are going to SAVE US!!!!
First-time claims for unemployment benefits plunged to fewer than 45,000 in June after peaking above 60,000 in March, said UMass.
Oh, they PLUNGED did they?
HOW MANY PEOPLE DROPPED OFF the ROLLS or RAN OUT of BENEFITS?
The diminishing rate of job losses is among several indicators that suggest the state economy has begun a recovery.
Just wondering what happens when there are no more jobs to shed because there are no more jobs; that gonna be declared a turnaround, too?
Consumer and business confidence are on the rise as are stock prices of Massachusetts companies. Automobile sales taxes were also up in June, a sign that auto sales have picked up, while the technology sector appears to be turning around, Clayton-Matthews noted.
Related: Consumer confidence slips
Also see: Slow Saturday Special: Same Time Last Year
I'm just wondering why we should believe him about cars and other things. I mean, I'M NOT and NEITHER SHOULD YOU, readers.
And what sort of man takes his wife's name, huh? One with no balls, that's sort.
Still, the economy remains weak, and, for the time being, indications of a recovery should be viewed as “tentative,’’ Clayton-Matthews said.
Now DON'T HEDGE, s***ter!
Earlier this week, economists pointed to improvements in June home sales as one of several indicators that the Massachusetts economy may have hit bottom and begun a recovery. And yesterday, the Federal Reserve issued its survey known as the “Beige Book,’’ in which New England retailers reported better sales, with many believing the sector is “past the bottom.’’
Related: Massachusetts on the Mend
Had it with the double-talking, mixed messages and lies, world?
Hey, at least SOMEONE MAD DOUGH while you at your breakfast bowl of scitte, 'murka!
"Things looking up for technology firms; Despite downturn, surge of optimism in key state sector" by Hiawatha Bray, Globe Staff | August 1, 2009
For digital technology firms, a sector considered to be one of the most important to the future of the Massachusetts economy, the worst of the recession just might be over.
MIGHT BE? MIGHT BE?
NOT a GOOD WORD in a REPORT, s***ter!
Three of the world’s top technology companies - IBM Corp., Intel Corp., and Apple Inc. - have announced strong financial results for the second quarter of 2009.
This as IBM is MOVING JOBS to INDIA, huh?
The numbers from tech firms based in Massachusetts haven’t been as uniformly upbeat, but results from data storage giant EMC Corp. in Hopkinton and microchip equipment maker Teradyne Inc. in North Reading suggest the sharp drop in demand for high-tech products may have hit bottom.
“I think we’re seeing a hint of a comeback,’’ said Andre Mayer, senior vice president for research at Associated Industries of Massachusetts, a Boston-based group of manufacturing companies. “Despite an overall bad economy, we’re hearing more positives than we were for a while.’’
Have YOU had it with the DOUBLE-TALKING BS, readers?! I mean, really!
The Massachusetts economy is unusually dependent on technology-based businesses.....
And they are dependent on massive state welfare.
Gus Faucher, director of macroeconomics at Moody’s Economy.com in West Chester, Pa., said that Massachusetts high-tech employment has declined only about 1.5 percent during the current recession. That’s mainly because the economic downturn has been concentrated in other sectors, such as housing and financial services.
And WAIT until you see the BUKU BUCKS they brought down in the second quarter -- as unemployment rose again!
On July 14, Intel, the world’s biggest chipmaker, pleasantly surprised investors by reporting a 12 percent jump in second-quarter revenue, to $8 billion, well above analysts’ expectations of about $7.3 billion. The company reported a $398 million net loss, but this was due to a $1.45 billion fine levied by antitrust regulators in the European Union. Otherwise, Intel would have reported a quarterly profit of $1 billion.
Sigh. Where are you, American people?
Two days later, IBM said it had earned $3.1 billion in the quarter, compared with $2.76 billion the year before. The company raised its 2009 profit forecast from $9.20 to $9.70 a share. Then last week, Apple announced a 12 percent increase in quarterly revenues and a 15 percent surge in profits.....
I really don't know what to say anymore, America.
Fare the well, I guess, if living in a holed-out s***-hole is happiness.
J.P. Gownder, analyst at Forrester Research in Cambridge:
“Even if wealthy people lose money, they have money to spend.’’
How many more insults you need?
But analysts warn that while the tech economy is no longer getting much worse, there’s little evidence that it’ll soon get much better. “I don’t think we’re done at all’’ with the recession, said Roger Kay, president of Endpoint Technologies Associates Inc. in Wayland. But, he added, “the mixed results do indicate that we’re not in free fall any more.’’
You mean, LIKE a WTC TOWER on 9/11, that kind of free fall?
--more--"Oh, I THINK THOSE are ENOUGH INSULTS for now.
How about some MORE HOPE from the SHIT-SHOVELER in CHIEF?
"Innovation is key to US economic future, Obama says" by Darlene Superville, Associated Press | August 2, 2009
WASHINGTON - The president cited Friday’s Commerce Department report showing that in the past few months the economy overall has done “measurably better than expected.’’ He credited his $787 billion economic stimulus program for much of that progress.
This guy is just as big a liar as Bush, he just says them better.
Related: Obama's Footwear
So which lie is the truth, 'bamer?
Obama reminded the nation that full recovery will not happen overnight, but rather will take many more months.
You know, I thought the S***-SHOVELING LECTURES went out with Bush!
Apparently not.
“Even as we rescue this economy, we must work to rebuild it stronger than before,’’ he said. “We’ve got to build a new foundation strong enough to withstand future economic storms and support lasting prosperity.’’
Guy isn't all full of himself, is he?
Of course, the BANKS and WAR LOOTERS are doing JUST FINE!
That means having the best-educated, highest-skilled workers in the world, a healthcare system that fosters innovation by holding the line on costs, building a clean energy economy, and investing in research and development, Obama said. “It is only by building a new foundation that we will once again harness that incredible generative capacity of the American people,’’ the president said. “All it takes are the policies to tap that potential - to ignite that spark of creativity and ingenuity - which has always been at the heart of who we are and how we succeed.’’
And you bought all this s*** during the election, 'murkns?
You actually BOUGHT all of that GLOBALIST SPEW that sounds like it came out of George W. Bush's mouth?
Also yesterday, Obama hailed as a “historic step’’ a House committee vote on the healthcare overhaul bill he has said will benefit the economy by controlling rising costs. Obama has said that without changes to the system, healthcare costs that are rising many times faster than inflation threaten to bankrupt the nation....
Related: Why Obama Wants A Health Care Bill This Year
Yeah, that's why China was over here.
Also see: Obama Cuts Defense Budget Less Than One Percent
Looking ahead, Obama said he will discuss the foundation he wants to lay when he makes a second presidential visit to Elkhart, Ind., on Wednesday.
Related: Obama Looks Backward
Layoffs in the recreational vehicle industry account for much of the job loss in northern Indiana, which is struggling with an unemployment rate near 17 percent.
Called a PHOTO OP and it is PURE PROPAGANDA!
“For communities like Elkhart to thrive, we need to recapture that spirit of innovation that has always moved America forward,’’ he said.
Then HOW ABOUT ENDING the MASS-MURDERING ARS, you puss bag?
--more--"
Readers, why is it AFTER READING a NEWSPAPER I feel HOPELESS, but after READING BLOGS I feel LIFE being AFFIRMED?
Why is that?
Also see: Boston Globe Declares Recession Over
The Boston Sunday Globe Says Job Loss is a Good Thing
Well, it is ON TO the BLOGS now....
KBR 2Q profit surges 40 percent on revenue boost
Gee, how come the Globe didn't report that?
After $182 billion taxpayer rescue, is AIG on the verge of collapse?
?!!!!!!!!!
"Happy Days Aren't Here Again
by Peter Schiff
Have you heard the great news? The recession is over! It's true; I saw it on TV. Why fret about growing unemployment lines when banks are paying big-time bonuses again?
Proof of the turn was apparently revealed by the 2nd quarter GDP figures that showed that the economy declined by only 1%. After four consecutive quarters of negative GDP, the green shoots now assume that growth will resume over the summer. But before we pop the corks, it may be worthwhile to ask, "what really has changed, and what is responsible for our new lease on life?"
In truth, because of the continued profligacy of the government and Federal Reserve, the imbalances that caused the current recession have actually worsened. We are now in an even deeper hole than when the crisis began. Rather than wrapping up a recession, we are actually sinking into a depression. If things look better now, it's just because we are in the eye of the storm.
We must remember that recessions inevitably follow periods of artificial growth. During these booms, malinvestments are made which ultimately must be liquidated during the ensuing busts. In short, mistakes made during booms are corrected during busts - and in the recent boom we made some real whoppers. We borrowed and spent too much money, bought goods we couldn't afford, built houses we couldn't carry, and developed a service sector economy completely dependent on consumer credit and rising asset prices. All the while, we allowed our industrial base to crumble and our infrastructure to decay.
In order to lay the foundation for real and lasting recovery, market forces must be allowed to repair the damage. However, current policy is counterproductive to this end. Trillions in stimulus dollars have kept the party going, but now what? How does deficit spending by the government address the problems that brought about the crash? It doesn't; it just delays and worsens the hangover - and we have to hope we don't die of alcohol poisoning.
By interfering with the unpleasant forces of the recession, we simply trade short-term gain for long-term pain. By propping up inefficient companies that should fail, we deprive more effective companies of the capital they need to grow. By holding up over-valued asset prices, we prevent the prudent or less well-off from snatching them up and, in doing so, creating a new price equilibrium based upon reality. By maintaining artificially low interest rates, we discourage the very savings that are so critical to capital formation and future economic growth. In addition, the false economic signals the Fed sends the market prevent a more efficient re-allocation of resources from taking place and leads to even more bad economic decision being made. By running such huge deficits, we further crowd-out private enterprise by making it harder for businesses to invest or hire.
The recently passed "cash for clunkers" program (currently on-hold, as it ran out of funding in one week) is a perfect example of how government policy can make the economy worse. By incentivizing Americans to destroy fully paid-for cars so they can go deeper into debt buying brand new ones, the government weakens an already crippled economy. The last thing we want to do is subsidize Americans to go deeper into debt by buying more stuff. Don't they realize that is precisely the behavior that got us into this mess?
Think about it this way. If your friend were in trouble because he had too much debt, would you encourage him to take on even more? Wouldn't a real sign of progress be a reduction of debt, even if he had to cut back on his everyday expenses? What is true for an individual is also true for a collection of individuals, even if they call themselves a 'government.' If, as a country, we are even deeper into debt now than we were before, we are worse off. Period. The fact that the additional debt enabled better short-term GDP numbers is a long-term negative.
Since we have learned nothing from past mistakes, we are condemned to repeat them. As if we have not already suffered enough as a consequence of the Bush/Greenspan stimulus, Obama/Bernanke are giving ever larger doses, which will prove lethal to any recovery. The recession is over; long live the depression!
--MORE--"Who you gonna believe, Amurka?
