There Is NO Recovery, It Is All A Charade.
By Daniel at 8 November, 2009, 4:30 pm
There is no recovery. What we have been seeing are the results of the replenishing of inventories(which has to be done if a company is to stay in business), C4C, the Home buyers credit, sharks taking advantage of foreclosure sales, and the results of cut-backs at companies. Nothing positive at all.
The following is why there is no recovery and cannot be one until these problems are addressed and the problems solved;
1. UNEMPLOYMENT! The number of those unemployed grows EVERY month. It doesn’t matter if the numbers of the new unemployed are becoming slightly smaller, people are losing their jobs! Unemployed people have no extra money to spent, most often CANNOT pay their bills, and often lose what they have (repossessed car, foreclosed home).
2. FORECLOSURES! This is a big stake in the heart of home values and will continue to remain so until foreclosures return to the minimal numbers of a healthy economy. Foreclosures mean empty houses that are unsold or sold below value. Foreclosures mean a bank or banks are losing money. Foreclosures mean people with poor credit, usually for at least seven (7) years who have lost their buying power!. Hang on because the foreclosure rate in commercial real estate is just getting started!
3. CREDIT. Credit is hard to come by and almost impossible in some instances. The CIT bankruptcy, while played down by Wall Street and the MSM, is still a monumental problem because of how it will impact small and medium businesses. Likewise the CapMark bankruptcy because of how it will impact businesses ability to secure commercial real estate loans.
4. BANKS! The banks were successful in getting Congress to change the accounting rules for banks, changing Mark to Market, and giving the banks a way to hide their huge problems. The problems are still there, just hidden. The banks know it, the government knows it, and eventually it WILL have to be dealt with. There is not going to be a big over-night miracle where the economy magically turns around and home values sure back to where they were immediately making the bank’s books look good again! Of course this is waht they are hoping for. Meanwhile regional and community banks are being closed at an alarming rate by the F.D.I.C. You do NOT lose over 120 banks in a year in a good or even a mediocre economy. This is a very bad economy folks!
5. LEADERSHIP! Obama chose to put the Fed in charge of the economy by appointing Geithner as the Treasury Secretary. Meanwhile he and the congress have followed the same course as the Bush administration; giving the Fed a free hand while increasing their powers. The Fed is a bank, a monster bank, but still a bank and it’s instinct is protect it’s money and other banks. That is one reason, and a big one, that Main Street has been ignored throughout this crisis. Bernanke is an incompetent, corrupt liar who has enriched and empowered his friends to the detriment of the Country. He was caught unaware by the severity of the crisis, took the wrong steps to try and avert it, made huge mistakes in late 2008 and early 2009 and was saved only by the power of the Fed and the outpouring of taxpayer money (TARP, etc.). Had Bernanke not been able to steal and pour taxpayer money into the markets in late 2008 and early 2009 we would have experienced a Market crash. Sadly, one is still imminent. The lack of leadership has kept us tottering at the precipice of a huge economic disaster and cost us and several future generations dearly. Meanwhile all we have is lies and promises that things will get better.
7. DEBT. No country or empire in history has borrowed it’s way out of debt. It is impossible. That is like an alcoholic drinking his way to sobriety! The United States is now OVER $12,000,000,000,000 in debt!! This is now officially a record and each citizen’s share of this debt is $39,061.84. The average individual income is barely above that, so how will it ever be repaid? Take away the United State’s military might and we have become a THIRD WORLD NATION! We don’t even have the technological growth that we used to have. Our leaders and corporations have given it all away!
- cynicalguy
No comments yet.