Reality check for real economic recovery:
By Daniel at 14 July, 2009, 9:59 am
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Oh goody enthusiasm for Goldman Sachs the con artist firm that drove the prior day’s rally. The recession is over and all is well right….
So I guess we just have to turn a blind eye and deaf ears to:
1. Unemployment numbers exploding.
2 Hourly weekly manufacturing hours lowest in decades.
3. Business investment down 40% in 2009.
4. Automotive sales down +9 million units.
5. Housing still has 10-15% to drop to the median. (20% here in FL )
6. US exports at all-time lows.
7. The Baltic Index collapsing again.
8. Foreclosures accelerating again
9. Commercial Real Estate at 15% vacancy rate.
10. California on verge of implosion, which represents a big portion of GDP.
11. Delinquency rates on credit cards and loans accelerating.
12. 47 States can’t balance their budget in 2009.
13. Mortgage rates are creeping higher.
14. BRIC is downsizing US treasuries exposures.
15. Banks decreased credit card lending by 38%.
16 Banks won’t mortgage Jumbo loans. (Or anything else)
17. Retail sales are down.
18. Markets are being manipulated by liquidity injections. (Fed & GS)
19. Bankruptcies are up 50% YOY.
20. Consumer spending continues to decrease. – VERY CRUCIAL -
21. Tax revenues are down 30% in April.
22. Bernanke and co. is having trouble rolling 1.4 trillion in debt (and growing) in 2009.
23. Social Security and Medicare are under funded by 50 Trillion.
24. 200 trillion in derivatives exposure in US, 500 trillion worldwide.
I have to live in the real world with the real people. How could the recession have ended already? When the numbers in the first few weeks of July are still very negative. I guess I have to see or feel it to believe it. I am definitely not feeling it. Our government continues to support the most egregious corporate financial market losers who still get to play in this market. No wonder they never learn. If Goldman Sachs just went away it would probably help make the financial industry more moral and solve a boatload of conflicts of interest. The companies who have broken business models should be allowed to fail. Simple as that the truth may hurt, but in the end it’s the only thing that can save those of us still living in reality!! We shall see how deep the rabbit hole really goes.
It almost seems as though this particular Recession, in combination with how the US Gov’t has handled it, has re-shaped what the US Economy is. It’s no longer what it once was - it has “evolved” in the view of the Markets and Big Business, but for the real people, you and I, it has devolved. America used to whine and cry about the differences between the rich and the poor - the growing divide between them. We can’t even comprehend what will become of this divide now. This Recession has multiplied this divide in 2 years, what would have taken about 20-30 years otherwise; and the irony is that this is in the full support of the one man who promised to “change” all of this.
I’m just sick to my stomach of what our Gov’t was wrought upon the American public. We haven’t even begun to feel pain.
ImpendingDoom
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