Where will the growth come from? (one cylinder engine: printing press)

Market Watch ^ | 05/23/09 | Rex Nutting

[TigerLikesRooster]

Where will the growth come from?

Economy may move forward, but only on one cylinder

By Rex Nutting, MarketWatch

WASHINGTON (MarketWatch) - The U.S. economy will begin to grow again in the next few months, most economists agree, but it may not feel like much of an improvement to the millions who've lost their jobs, businesses or homes.

By almost all accounts, the recovery from the worst recession in several generations will be sluggish for the next year or two or three, with the economy firing on just one cylinder - the Bernanke-Obama stimulus.

Even the most optimistic analysts believe it will be a tough slog for the economy.

The usual sources of growth seem missing: Consumers are paying down debts, businesses aren't investing, and foreign markets are deep in recession. Any growth this year is likely to come from the government's stimulus spending and from the turn of the inventory cycle, but those are temporary factors that will fade.

Where will the growth come from then?

[TigerLikesRooster]

Ping!

[ChetNavVet]

Rex Nutting, or whatever the name is, is only 2/3 right, the 1/3 he’s wrong about is that the stimulous proved (admittedly as he says) even helpfull.

No, I think China will continue to dump the dollar as much as they can. And as any non-retarded entity, said entity will follow suit. I think the first stimulous was retarded when former president Bush initiated it.

But the retardation has gone into overdrive in just the last six or seven months. And although one could be forgiven for being stupid, The ideoligy and spending of the current Admin puts future generations so far in debt, that the MSM refuses to report it, after all, they supported this current bOzo.
MSM please, for Your childrens sake, do your job.
Ya know... if You did your job, maybe you’ll have a job.

[wastoute]

The first stimulus was just a trial ballon to see if the public was stupid enough to take it. They were. Once that hook was set the folks here were just a question of time from being landed and filleted. How we became a nation of folks who thought they were entitled to other folks stuff is amazing but here we are.

I said so at the time and I still believe it, the first stimulus had nothing to do with stimulating the economy it was just an experiment to see if there would be any objections. There weren't and how many months went by before we had a Trillion dollar bailout on the table? Once the gummint had their answer they knew they could do just about anything and if it had "recovery" stamped on it it would fly. America: a good idea that is over.

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[Desdemona]

So, cutting taxes and making the business environment more hospitable for entrepreneurs and small business owners is out? Darn.

[theBuckwheat]

Don't confuse money with wealth. Economist Ludwig von Mises said that printing money causes the “appearance of prosperity”. This causes many players in the economy to mis-judge their level of wealth, to mis-judge what things can be sold for, and most importantly, what things are worth. This causes poor investment that cannot in the long run even pay the interest costs of the money that is borrowed. The end result is bankruptcy and a collapse in market prices.

Just like we saw with NINJA mortgage loans (no income, no assets, no job, zero down, low teaser rate, ARMs), and the current foreclosure “crisis”.

[org.whodat]

Where will the growth come from then?

LOL, I do believe he has read one of my posts!!

[org.whodat]

Does not work when you have an over supply!!!

[org.whodat]

http://www.freerepublic.com/focus/f-news/2254926/posts