Posted on 01/30/2023 6:11:28 PM PST by RomanSoldier19
The latest numbers from the Bureau of Economic Analysis show that the U.S. economy grew by 2.9 percent in the fourth quarter of last year, and 2.1 percent for 2022. While the White House was quick to take credit for the state of the nation’s economy, they might want to think twice. This latest report should have alarm bells ringing, not trumpets sounding.
That’s because economic growth is slowing down. Even the areas which contributed positively to gross domestic product (GDP) are not necessarily signs of prosperity. For example, business investment grew at only 1.4 percent in the fourth quarter, but that was almost entirely inventory growth. Nonresidential investment, a key driver of future economic growth, was up just 0.7 percent.
Meanwhile, residential investment fell off a cliff, dropping 26.7 percent as consumers were unable to afford the combination of high home prices, high interest rates and falling real incomes
(Excerpt) Read more at foxbusiness.com ...
Bones!
I’m a doctor, Jim....not an economist.
Economic cycles are natural part of capitalism. It is the idiotic attempts to abolish recessions is the real cause of huge bubbles which always end violently.
not a problem for the dems
they will blame it on the republicans
Just like preventing natural cleansing forest fires until a big one comes.
Bookmark
We could have capitalism without the Fed.
Somewhere I read that recessions and depressions were deep but short before the Fed.
We see this in how anemic the recovery was from the 2007/2008 bubble.
Economic cycles are natural part of capitalism. It is the idiotic attempts to abolish recessions is the real cause of huge bubbles which always end violently.
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What you state is so true.
I would like to highlight one difference between the post Great Depression/WW 2 era as opposed to the financial system between 1790-1939.
Prior to the post WW2 era the people running your financial & political systems would have multi year inflation and then multi year deflation.
The last multi year deflationary years were in the 1930’s, since that time period we’ve had 3 years of deflation.(1949, 1956, & 2009)
Another difference was they used to let banks go under and take their deposits with them, screwing in the process customers & businesses.
For example after the panic 1837, banks suspended specie redemption on paper bank notes for over a year.
Between 1930-1933 A bunch of banks went under, without any protection for most small depositors.My great grandfather (1882-1966) got 8 cents on the dollar and disliked Herbert Hoover, a guy he voted for in 1928 for the rest of his life.
We do it different now, we inflate and then inflate again.
Bad banks should be allowed to fail.
Ditto with any business.
Usual result is better banks and better corporations take up the slack.
It is like pruning dead wood. It actually encourages healthy growth.
Reason the economic recoveries are getting weaker is because the big government is an anchor in the form of heavy taxes and onerous regulations.
Government should not assume role of mother. That makes people dependent with less desire to improve themselves
Almost all of these economics articles fail to deflate the numbers.
If an economy grows by 5% but inflation is 10% then in fact the economy is in deep recession with output falling by 5%.
Inflation is great for those who wish to lie about the economy.
Bad banks should be allowed to fail.
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I don’t have a problem ideologically with what you’re saying, but banks aren’t like other businesses because I’m not running my business & payroll through the coffee shop down the street.
I’m making deposits & payments through a financial institution. I expect that institution to have solvency and not leave me hanging with “too bad, so sad” we went under.
Why should a well managed businesses lose their deposits and ability to pay bills because some guys made bad bets with their financial institution?
Yep.
“Bad banks should be allowed to fail.”
OK, it’s your money.
Well, that makes sense; but the $hit-for-brains majority of America wants more lending...So, if you were smart enough to invest in real wealth (water/land/conservative neighbors) congratulations...Otherwise, better start looking for a nice out-of-the-way place to enjoy the fruits of your labor.
“And I looked, and behold a pale horse: and his name that sat on him was Death, and Hell followed with hm..." Rev. 6:8 (KJV)
The problem with this is that we no longer have J.P. Morgan to step in and organize the banking community into dealing responsibly with an economic panic.
Its not shocking to expect a depression after 2 years of a government basically attacking the energy and food supply with a vengeance. Those processing plants don’t just burn themselves. Poison in the chicken feed? Yeh.
“ Why should a well managed businesses lose their deposits and ability to pay bills because some guys made bad bets with their financial institution?”
Because you can’t get blood from a turnip.
L
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