Jobless Recovery

Cheers from me too PIM.

PIM: Good story! At last count, about 70% of the U.S.GDP was consumer driven. I wonder how many consumers drive the economy nowadays? Wall Street is run by scam artists and confidence men (and women) that manipulate the market for their own benefit. Does anyone doubt that? If they do, then my question is this:  How are your 401Ks and mutual funds doing? And has your home's value increased  lately? And what about the value of the dollars that you've got in liquid assets and tucked away in savings accounts and CDs and T-bills? Deflationary spiral or inflationary spiral . . .what difference does it make when your dollars are worth much less today than they where yesterday? And what about the rising price of gas? Not only is the stock market not rational, but neither are those that believe tinkering with the economy will help to any significant degree. The Fed can do this and the boys and girls on Wall Street can do that and the President can do something else and so on and so on. The tinkering with the U.S. economy, by all of the above, has been going on for years, yet where is the hard data to prove that any of the economic tinkering actually improved things? God Lord! America was in a depression for over a decade in spite of all the tinkering! And in the late 70s, America started on an inflationary spiral in spite of all the tinkering and after inflation finally came down it took until 1986 for the unemployment rate to go down to 7% and shortly after that,  the stock market crashed. I'm all for consumer confidence! But it's rather difficult to instill consumer confidence when the same bunch that got us into the mess to begin with are painting a rosy economic outlook while the unemployment numbers are in the double-digits throughout much of the country.

But its that factor of making sure one is not hyping doom and gloom and then adding to ones own suffering. No rudeness intended just a nudge to the reality of the power of hype. I look at charts in the long term and not the short term. Since the recession started I noted how media hype and political propaganda caused sudden troughs in a rising long slope upwards. Your sudden series of doom and gloom stories are in response to some economic propaganda. Now the slope to the recovery is still on an upward slope.

I am putting an emphasis on hype and how dangerous it can be for America and its Republicans that are issuing the propaganda that the stimulates is a failure and from what I see is Obama getting annoyed. I think he and his White House administration really think they are doing the right things. 

I am saying what if the US and other world powers are doing the right thing, and the political objection is completely as wrong as the picture they tried to paint concerning the British and Canadian heath services. 

Of course your own doom and gloom prophesies will not do much harm but the politically driven media does, has and certainly will in my opinion. Where as I agree that the stimulus the bailouts have been no good to achieve high aims other than create some confidence to the investors and mild confidence in lending money. The markets will always recover on their own but the effect of hype slows down the process.

One can never assess markets in the short term and really know where they are going, but you can see where they are going looking back on the charts history and well using that old well used Dow Jones Theory.

Recovering Unemployment by looking back at historic recessions take a longer period to recover than the recessions themselves.

My comment was one showing the other side of the coin one, hype during a recessions recovery can cost one personal losses such as my own. At this stage of the game I prefer to analyze the long term and not panic at short term economical drops it gives me a more optimistic view that normal shows my analysis to be fairly right. 

I did warn you within the humor of my comment that the view was given in a different vein.  It was given to make you and others think about the dangers of over hyping problems and also believing a political view that could be totally wrong and dangerous for the future stability of America.

I would really like to see two political parties in USA sit down and hold hands concerning USA economy however its not going to happen as the people are really pretty stupid of which splits USA completely in two. 

On the economy I have seen people bicker just like they are now in past recessions and then those recessions recovered that is also part of history so please in future bare with my humor and believe me I am not annoyed just bemused and amused. I will not say I told you so when this recession recovery is completed mid next year. Oh' America will never be the same and if it does not change its economical plans 5 years or so time there will be a much more deeper recession and a complete depression in the USA.  The solution is all to do with manufacturing that can no longer be outsourced. 

PIM,

As you know, I respect your opinions and observations, I just have a different perspective on the economy and the possible solutions . If inflation is a concern, please see my link to the story I published on I think, Saturday. I've noticed that when a contrarian point of view is posited, it gets a lot of viewing, but not much debate on the merits. I'm fine with that, really. I will state that I'm not an economist, nor do I play one on TV. My observations and analysis is from reading and absorbing all points of view. It may in fact be a polar opposite of the neo-classical theory, but it shouldn't be dismissed outright. I am not a big fan of government intervention into the market per se. I do see a useful role to be played by government and institutions when a real crisis, as we are experiencing now occurs. Please tell me, are you in favor of any intervention by regulators and government agencies under the current conditions? Should government be providing additional unemployment benefits, mortgage foreclosure programs, assistance to state and local governments and the like? Or should the market just be permitted to sort itself out without any intervention?

http://my.nowpublic.com/tech-biz/should-we-be-worried-about-inflation-right-now

Agreed, tikun, as far as the stock market being a place for companies to acquire capital.

The market itself isn't the problem, it is the serious gamblers and wealth takers, that are a problem. Hyping an overblown market is greed writ large. I don't have a dime in the stock market, yet the machinations of the "players" effect my everyday life by manipulating the value of stocks and the cost of money (hence all goods and services).

It would seem that every so often, the market has to purge itself. Not happening this time - so far. Too much gummit money proping things up. Not a good thing.....worse when it is borrowed money.

The Stock Market is the problem, because we should not think we need a Stock Market to invest in. Who gives us the right to compare companies against each other just because of the up's and downs of the money coming to them? I call that discrimination....Just as comparing who should be sanctioned in the World for War crimes....whether it is Israeli's fault or Palestines.... Thing is the guys who use the Markets are mostly the War Supporters, the people who feed the Military Industrial Complex. That sword is a two edged instrument of death....one side the Military the other the Stock Market.

We do not need the Stock Market to live in this world... We do not need Wall Street who is really the Middle Men who inflate and manipulate the true markets so they make the fortunes....not the people doing the investing. Think about that..please... and see that the Stock Market is not made to help the people but to steal their money instead. The only winners in this are the guys who run the Stock Market and the Banks....

You think the Bailout along with their greedy profits does not benefit them...on top of the outrageous bonuses these people have raped over on simple hard working people? Proof is that Wall Street should be closed down..and prevented from operating.. Companies can solicit their own stocks and value at their own Company Headquarters..... Thereby respecting each other...by not comparing and plotting to take control of someone elses livelihood.

How is it we wake up each day with the FEAR some other company is going to take them over? America should not live in such fear.....nor be plotted against.. No wonder terrorism exists... Think about Enron please.... They collapsed because the fear in losing the pipeline deal going through Afghanistan....they took it out on the American people by increasing Electric Energy rates at enormous spikes.....This Fear; this cycle of risk and being screwed causes hate..it does not create trust and stability......nor a worked out plan toward societal improvement.

We can negotiate our own pension funds...kept out of the hands of brokers....who get the handle on everyone's information....and think they can just use that money without your say so...

Anyone who has a pension fund....I say sorry to hear that...because you do not control it, your Stock Market Broker does....and you know what.....I consider living in fear of losing that pension each and everyday in my life very hard on the emotions and the stability of a person.

Better to have control of your own worth in each individual company......All in order to SHUT DOWN THE MILITARY and to promote the Christian value that we are responsible to ourselves and to our families.....Not the lies of the shining city of the Stock Market the Lord was tempted with in the desert on his 40 day fast..

See the Light....and trust in words that Moses warned......and take heed to your own security.

In God We Trust

The Rev.

I am actually a snob when buying clothes, I hated sales staff butting in when I looking for new clothes in fact that was the British way, before American sales methods hit UK shores. I am so glad that the high end tailors and stores do not use the nosy put the onus on the buyer sales methods.

As I have attended Americanised sales courses I know the friendliness is very false, its all about placing the onus on a customer to buy the expensive high margin goods or at least one article whilst they are shopping around. When somebody bothers me when shopping with such methods I tell them I can make my own mind up and please leave me alone so I can do so. If I want help I will ask them for it.

Frequently.....of course i can't afford the 'top class' car, but waiting 20 minutes at a 'fast food' palace works the same sense of wonder in me.