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Remember that 2010 Summer of Recovery? And the “Sugar High” is over…

June 1, 2011

Yeah. Me neither….

“We’re on the verge of a great, great depression. The [Federal Reserve] knows it.

And you know what will fix it! More government spending! YAY!

 

MORE:

“The sugar high that has buoyed the U.S. economy over the past six months is wearing out, and there is little in economic growth or foundation to show for it,” said Douglas Borthwick, a managing director with Faros Trading in Stamford, Connecticut.

 

Oh. Dear.

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10 Comments
  1. James permalink
    June 1, 2011 3:28 pm

    How about QE3? If 1 and 2 worked great (and if the Fed gets to set the targets then of course they did) then why not more?

  2. Michael Eaton permalink
    June 1, 2011 3:50 pm

    Let me say this… The “Summer of Recovery” has been far more successful (light years) than “Major combat operations in Iraq have ended. In the battle of Iraq, the United States and our allies have prevailed.” and “I think they’re in the last throes, if you will, of the insurgency.”

    How? Let’s consider: Stock market continues to climb, businesses continue to spend, consumers continue to buy. Where is the downward surge? Housing prices, manufacturing (still never recovered from Bush’s election) , and public sector jobs:

    http://primary.washingtonpost.com/blogs/ezra-klein/post/manufacturing-collapse/2011/06/01/AGTFhSGH_blog.html

    http://finance-commerce.com/2011/05/economists-say-public-sector-job-losses-end-of-stimulus-will-chill-recovery/

    • June 1, 2011 7:53 pm

      Summer of Recovery was a joke. It was a hopeful psychological push that perhaps the American people would just whip out their credit cards and refinance their already undervalued homes and KEEP ON SPENDING, you know, to keep the economy moving…

      Yeah. Sorry. That’s for progressives running our government, not intelligent people who now understand that it just doesn’t work that way.

      Housing prices are a HUGE drain, so yeah, until they recover, then all the stimulus in the world is but a fart in the wind. Production was Bush’s fault? Yeah. Lay that at his feet. I’d really like to see how the President somehow shutdown companies and manufacturing plants single-handedly. Perhaps, and just perhaps, it was more big government interference that drove companies overseas? Naaah. It was GREEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEED. Or something.

      The stock market continues to climb, though it took a dump today as people learned that the Summer of Recovery Part Deux isn’t any brighter than the first. Businesses are NOT hiring, as employment continues to stay stagnant, and public sector jobs, built on the back of borrowing money/going further into debt and raising taxes (taking money away from the private sector, kinda counterintuitive towards a recovery no?).

      False prosperity built on the promises of a government that can not create wealth is not prosperity that will last. And we’re all getting a good dose of that.

      Mike. As I’ve said before, you’d put a smiley face on prison rape, as long as Big Bubba is a Democrat.

      And public sector jobs? Why, just bring back the CCC and WPA why dontcha Mike? I’m sure we can find some of the non-existent magical shovel ready jobs we were promised would appear…

      • James permalink
        June 1, 2011 9:45 pm

        Other little things Mike doesn’t mention:
        -Unemployment is still up (but down from its high) Thank goodness that stimulus kept it under 8% (oh, wait a minute…)
        – Manufacturing losses are mostly due to globalization and free trade. Some Dems and Reps want to restrict it (remember Bush trying to put tariffs on steel and getting smacked from all around on it, though more from the right)…from Krugman to McCain, so many folks on both sides like free trade. But when in doubt – just point to the other guy!

  3. June 1, 2011 8:06 pm

    You are correct Mike, everything is AWESOME!

    Thing are just PEACHY!

    http://www.cnbc.com/id/43239586

    Forgot to mention this as well:

    “Consumer sentiment unexpectedly decreased in May to the lowest level in six months…”

    and

    “Consumer spending cooled to a 2.2 percent annual pace in the first quarter following a 4 percent gain in the previous three months as food and fuel prices climbed. The economy grew at a 1.8 percent pace last quarter after expanding at a 3.1 percent rate

    Yeah… I can feel it.. The Summer of Recovery Part Deux…

    http://www.bloomberg.com/news/2011-05-31/u-s-consumer-sentiment-unexpectedly-falls-to-six-month-low-on-job-outlook.html

    • texan2driver permalink
      June 1, 2011 9:11 pm

      http://www.cnbc.com/id/43239586

      The last month has been a horror show for the U.S. economy, with economic data falling off a cliff,

      “US house prices have fallen by more than 5 percent year on year, pending home sales have collapsed and existing home sales disappointed, the trend of improving jobless claims has arrested, first quarter GDP wasn’t revised upwards by the 0.4 percent forecast, durables goods orders shrank, manufacturing surveys from Philadelphia Fed, Richmond Fed and Chicago Fed were all very disappointing.”

      “And right now, the economic data is suggesting that however measly you may think a 3 percent yield is on a 10-year Treasury, the yield should probably be a fair bit lower given what’s going on in the US economy,” said Riddell.

      “You’ve also got to wonder at what point the markets for risky assets start noticing, too.”

      “QE3 anybody?” asks Riddell.

      Yep. Peachy. Just keep spending. Economy taking too long to recover? No job? Just keep spending.

      • James permalink
        June 1, 2011 9:30 pm

        You guys do realize that CNBC is the doom and gloom sayers in the media, right? Nothing but dour from them (not that things are super peachy, but really…)

  4. texan2driver permalink
    June 1, 2011 9:55 pm

    One may not like the messenger, but is or is not the message accurate? In this case, it is arguably at least mostly accurate. There is some bias in the article as evidenced by the writers choice of words such as “falling off a cliff.” However, most of the article relates what is actually happening in the economy. Is it EVEN possible that occasionally some source like Media Matters might actually report something that might actually be factual? Not likely, but possible.

  5. June 1, 2011 10:25 pm

    James, I did include a reference from Bloomberg as well… not just CNBC…

    I could put posts from the Center of American Progress… I mean the White House Press Office…..

    • James permalink
      June 1, 2011 11:15 pm

      I didn’t see that Bloomberg reference, sorry about that. And not to dig CNBC, the numbers they report are accurate, it just seems they love to report bad news (during any administration!). Not attacking the argument, just noting that it seems a little perverse in me to run around with so much emotion about how bad things are and it seems that is exactly what CNBC does.

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