Who Gets the Blame for the Slowing Economy? [NYT admits collapse, seeks new scapegoat]

New York Times ^ | MARCH 10, 2016 | Steven Rattner

[expat_panama]

ECONOMIC alarm bells are ringing: Financial markets have wilted. Forecasters have been slicing their projections for future growth. And some leading wise men — including the megabillionaire George Soros — are predicting a return to disastrous 2008 conditions. That’s almost certainly an overly pessimistic view. But without a doubt, the leading global economies are in a major slowdown.

Not evident is whether another recession looms. While current data suggests...

Governments alone are not to blame...

For a start, global competition and weak productivity growth have held down wages in developed countries. That has depressed consumer spending, as have increased saving and growing income inequality, which has pushed more money into the hands of the rich, who are less likely to spend it.

Lacking confidence and seeing weak demand, many businesses have held back on investing...

...And while reforming our regulatory apparatus would be a welcome economic positive, that should be urgent business for Europe. Sclerotic labor laws...

Meanwhile, key private sector actors are particularly fearful that central banks, which have kept growth alive by keeping interest rates near zero, have run out of ammunition, making the need for more robust fiscal policy even more urgent.

Then there’s China. Unlike their counterparts in developed countries, Chinese leaders aren’t afraid to act; their problem is that they often don’t seem to know what to do, particularly when it comes to managing financial markets.

When Chinese stocks sagged...

Most scary to China watchers is the country’s fast rising debt...

The past two recessions were caused largely by private actors: the risky lending of the mid-2000s and the dot-com bubble at the turn of the century.

This time, if we fail to break out of the current stagnation — or worse, fall into global recession — the fault will lie with our leaders.

[expat_panama]

Someone please tell me where they blamed Bush, I couldn't find it...

[goldstategop]

Not good news for Hitlery.

You know, the old crone running for the Third Obama term.

[Mad Dawgg]

"Someone please tell me where they blamed Bush, I couldn't find it..."

I think they are in transition right now and gearing up to Blame Trump...

[Arm_Bears]

The Republicans will be blamed, you can make book on that, despite giving Obama and Democrats everything they’ve wanted for the last seven years.

[trebb]

I think they are in transition right now and gearing up to Blame Trump...

Yep - leave him with chaos and "hope he doesn't succeed"...

I have a feeling he will be able to "splain things in a way that the People turn their rage on those who deserve it...

[central_va]

Lacking confidence and seeing weak demand, many businesses have held back on investing...

When you off shore the nations physical plant how/what do you invest in the USA to increase efficiency and expand production? We're not in the game.

The USA's job is to spend printed money buying g trinkets made by slaves all over the world. Get with the program people.

[Vinnie]

No problem. It’s the Republican Congresses fault.

[scooby321]

Paul Ryan and Mitch Mc Connell works for me

[Kudsman]

That has depressed consumer spending,

and there is your answer. It's us stupid Trump supporters not willing to buy more Chinese made trinkets. Get out there and charge your way to prosperity you fools!

[expat_panama]

A very good Friday morning to y'all!  So stock indexes wound up flat yesterday and while trading volume did increase slightly it was still below average.  That kind of commitment deficit's continuing into this morning's futures with these guys off a bit and these others buying in like crazy.

No confusion in metals land as the climb continues to new highs --gold, silver hitting $1,264.90, $15.62.  Not as much outside static, the only report is an hour before the bell: Export Prices.  My stack:

Why They Hate ExxonMobil: Killing Fossil Fuels - Rachelle Peterson, TWS
Which Candidate's Tax Plan Is the Most Pro-Growth? - Scott Hodge, RCM
In Defending Trump, I'm Not Capitulating - Larry Kudlow, National Review
How Economy Depends on Your Political Leanings - Caroline Baum, MW
Fed Failures Call For An Explicit Fed Rule - Allan Meltzer, Defining Ideas
Fed Shouldn't Watch Calendar - Frederic Mishkin & Amir Sufi, Bloomberg
Central Banks Really Don't Know What They're Doing - Jeff Snider, RCM

[kearnyirish2]

That’s right; Dem drones have been led to believe that Republican obstructionism has blocked Obama’s Bolshevik utopia, caused ObamaCare to fail, kept blacks poor, blah blah blah. They really believe that.

[ModelBreaker]

It must have been the Tea Party. We were not sufficiently enthusiastic about making Dear Leader’s economy robust.

[ThePatriotsFlag]

You can’t print “digital” money and give it to Wall Street each month and expect anything but eventual economic failure.

[griswold3]

So you mean the Fed’s buying corporate bonds to prop up the ‘wealth effect’ has only made the ‘rich richer’ and hasn’t trickled down to the middle class?
(What are those bonds actual value though?)

[I want the USA back]

bammy did nothing to improve productivity. All he did was take Whitey’s dwindling money and give it to non-Whitey.

[bert]

It is all pretty clear to me....

Obama’s fault

[mrsmel]

My thought exactly. Expect to see the homeless trotted out again as a problem, like clockwork when a Republican holds the White House.

[ProtectOurFreedom]

I think you put your finger on it right there. Republicans are,clearly at fault because they gave Obama what he wanted. Stupid, irresponsible,Republicans!

[ronnie raygun]

Governments alone are not to blame...the people running it are

[Lurkina.n.Learnin]

“The past two recessions were caused largely by private actors: the risky lending of the mid-2000s and the dot-com bubble at the turn of the century. “

Wait, What? There was a recession at the turn of the century? We were blessed by the magnificence that was Bill Clinton. Blasphemy. Good thing the NYT held their tongues on it, unlike 2008.