Big surprise, the "recovery" didn't work as expect

[SubGod22]

Obama Promises More Than 600,000 Stimulus Jobs

[SubGod22]

Obama's New Stimulus Plan Same As the Old

[Maggie]

Obama's New Stimulus Plan Same As the Old

From the article SubGod linked:

Obama shot back at skeptics during Monday's Cabinet meeting.

"Now, I know that there's some who, despite all evidence to the contrary, still don't believe in the necessity and promise of this recovery act," he said.

Arguing with a straw man seems to have become our President’s favorite pastime (he uses this technique quite often, in fact, in almost every speech) as if the critics of his stimulus bill want to do nothing about the recession. By the way, what “evidence to the contrary”? He continues..

"And I would suggest to them that they talk to the companies who, because of this plan, scrapped the idea of laying off employees and, in fact, decided to hire employees. Tell that to the Americans who received that unexpected call saying, 'Come back to work.'"

Which companies? Are you referring to Caterpillar, for example? I recall that you made this claim when you spoke at its plant a few months ago.

[RoyalShock]

Wait until all these "stimulus" projects require maintenance and the mil levies jump to pay for them.

Yeah, construction companies love it. Taxpayers, if they even remember this when the time comes, will hate it.

[SubGod22]

How to Really Create or Save Two Million Jobs

[1979Shocker]

I wonder if the unemployment rate has hit its peak.

Unemployment rate drops to 9.4 percent in July

WASHINGTON - Employers sharply scaled back layoffs in July, and the unemployment rate dipped for the first time in 15 months, sending a strong signal that the worst recession since World War II is finally ending.

A net total of 247,000 jobs were lost last month, the fewest in a year. That compares with 443,000 jobs that disappeared in June. And the unemployment rate for July declined to 9.4 percent from 9.5 percent in June.

The snapshot the Labor Department released Friday offered other encouraging news, too: Workers' hours nudged up after sinking to a record low in June, and paychecks grew after having stagnated or fallen.

[Maggie]

I wonder if the unemployment rate has hit its peak.

I hope so but I don’t think we have turned the corner just yet.

[SB Shock]

I wonder if the unemployment rate has hit its peak.

Nope. Hawkerbeechcraft is suppose to lay off another 25% of it workforce by the end of the year.

Interesting I talked to a relative who was trying to hire people to work during harvest and was willing to pay pretty well (well above minimum wage) - he had guys telling him no because the pay he would receive would "screw up their unemployment benefits"

[SB Shock]

Banks are continuing to fail - 72 so far this year. Loans from the commercial real estate market is the big trouble spot. There 305 banks on the FDIC "problem institution" list. The number since 1994 during the S&L crisis.

FDIC estimates that bank failures will run around $70 billion through 2013.

Economist expect the unemployment rate to continue to rise in the coming months to 10% or greater due to overall weakness in the labor market.

Most of the decline in jobless rate in the latest reporting (that showed a decrease) was directly from the result of "people giving up looking for work" - that was estimated at 422,000

The number of long-term unemployed people (>26 weeks) rose by another 584,000.

Meanwhile Fannie May reported a $14.8 billion quarterly net loss and would go to the U.S. Treasury.

[Capitol Shock]

Well all of that sure sounds like a recovery to me!? Let's all go borrow some more money!

[ISASO]

The Obama administration cooked the unemployment books in July in an attempt to shore up a sinking Presidency.

A meaningful chunk of population was removed from the calculation this time around. What we need is real grassroots confidence in the country, not more lies from power-mongers.

[SB Shock]

Looking into more detail on the government job report. Only growth was in to 4 sectors:

Government - added 12,000 jobs

Health Care - 19,600 jobs (oh, wait Obama will be cutting those soon)

Arts, Entertainment and Recreation - 10,000 jobs

Auto Industry - 28,000 job [this is bogus number because this is a seasonally adjusted number, the real fact is that the auto industry has been cut so extensively that there were fewer workers to layoff during the seasonal shutdown. So therefore less layoffs than expected actually became a positive number when season adjustment are added in.]

Without seasonal adjustments employment actually fell 1.3 million. There are 5.9 million less jobs in July 09 than in July 08.

[kcshocker11]

http://finance.yahoo.com/news/Krugman-says-world-avoided-apf-3573814253.html?x=0

Aggressive stimulus spending by governments helped the world avoid a second Great Depression but full economic recovery will take two years or more, Nobel Prize-winning economist Paul Krugman said Monday.

Krugman said the worst of the global crisis was over with economic and exports growth showing signs of stabilization. Still, recovery was likely to be "disappointing" as government spending wasn't sustainable in the long-run and unemployment rate still lagging behind, he told a two-day world capital markets conference here.

We have managed to avoid a second Great Depression ... but full recovery is at least two years and probably more,"
Krugman said there was still room for the U.S. government to increase spending to boost growth, despite concerns over its swollen budget deficit.

Krugman, who teaches at Princeton University, won the Nobel Prize in Economic Sciences last year for his analysis of how economies of scale can affect international trade patterns.

But of course what does this guy know! :D 8)

[WuDrWu]

Not very much actually.


1. Most of the "stimulus" spending hasn't even happened. The amount that has is not enough to have had any impact anyway.

2. The economy will recover when THE PRIVATE SECTOR decides it will and generally that is when there are favorable conditions such as lower taxes or another reason to fire up the machines.

3. If massive government spending was the answer, then nobody would ever go into a recession or depression. They would just turn on the printing presses. Clearly, it is not the answer.

4. Read 3 again. 3 proves 2.

5. We are mortgaging our great grand children's future. Higher taxes do not usually mean higher revenues (for the government).

6. We artificially broke the natural cycle of the economic model by keeping interest rates down when they should have been allowed to increase as the market was demanding. Keeping those rates artificially low expanded an already bloated credit market and worsened the inevitable pull back. These mistakes happened over the last 15+ years.

7. When politicians, all politicians, realize that they shouldn't play God, we'll all be better off.

8. Do you see a trend? Government "bailouts" either don't work at all (at a huge cost to the future) or simply delay the inevitable. How many times do we need to see the failure before we learn?

9. The banking bailout was slightly different as we were on the brink of a monetary collapse. There will be little to no long term price unless we don't learn from the mistakes or allow the government to run the banks.

10. Here's a deal for you...stop blaming President Bush for everything that's wrong with the world and I promise to not give President Obama the credit for saving the economy? Get it yet?

[kcshocker11]

http://zfacts.com/p/318.html

Interesting study here Doc. There are different opinions, only time will tell.
Im sure you wont give Obama credit for anything. You might note the article does give Bush credit for trying.

I do appreciate Doc that you dont normally use the ridiculous sources that are the basis for most of the right winged threads. 8)