Posted on 04/14/2010 1:02:55 PM PDT by kcvl
Polls say the economy is heading in the wrong direction. Markets say it's back on track. This time, the markets are right.
It's never easy to separate politics from policy, and the past 18 months have only increased the degree of difficulty. The U.S. has been through a historic financial crisis followed by a historic election and a series of historic federal gambles—from bailing out AIG and GM to passing a $787 billion stimulus and a $940 billion health-care reform bill. All that risk has made policy more complicated and politics more fraught ("You lie," "Babykiller").
It is worth stepping back to consider, in cool-headed policy terms, how all of this came to be—and whether the Obama team's approach amounts to a set of successful emergency measures or a new economic philosophy: Obamanomics.
(Excerpt) Read more at businessweek.com ...
When Wall Street can borrow money from the governemtn at 0 and invest in US Treasuries paying 4-5% they make money. The problem is that the money they are sucking up belongs to generations not yet born.
When government pumps trillions of dollars that they don’t have into the market the market, surprise, rises. Again those trillions are to be paid for by the yet to be born.
Average wages are down. Of the 160,000 jobs “created” last month 48,000 were census workers and 56,000 were in education. Education employees for the most part work for government. So we have over a hundred thousand new public employees and 50,000 private employees to keep the public employees employed and retiring with golden parachutes early in their lifetimes.
Finally, when business reporters celebrate too big to fail, government takeover of private industry, trillion dollar deficits as far as the eye can see, a hundred trillion in unfunded liabilities and a 100% debt/gdp ratio staring us in the eye you know the end times are near for capitalism.
All the news reports are aglow of the economy turning the corner and all is well.....bammie has proved that for the first time in history, socialism really does work if it's done by a half black POTUS.
Seems I've heard this before and will look forward to the “unexpected” turn for the worse in a week or so.
Reader discussion appears to be dissabled.
I can guess why.
what do you see with your own eyes?
Incestuous, yes. However, the opposite always puzzles me too. Case in point, that evil Louisiana viper Carville married to Mary Matalin......one (or both) of them, while espousing their own opposite political bents, are charlatans of no conviction.
Yep, just frickin' rosey.
Wall St. is working because they cut expenses by firing main street! That won't last though. Obamacare hasn't hit our pocketbooks yet. And neither have new taxes aka tax cuts which will be expire in 2011.
More lies and BS.
0bamanomics: Reward Failure, Punish Success!
You’re exactly right. Guess what the best performing stocks are today? Financial services. Look at CITI, B of A, and the rest. They’re playing Obama’s game.
The “growth” is all coming from the government sector, which is just reallocating wealth from one area to another. When the ARRA “creates jobs” building a highway, one of the few actual tangible programs it funded, that just means some places are getting new roads now that will be paid for by future taxpayers when the bill comes due.
“Generational Theft” doesn’t make for such eye-catching headlines however...
Here in Nevada taxable sales are down 20%.
As Reid would say, it’s good news!
To which the author responds...crickets.
While jobs have been slow to return, the country has experienced "an incredible productivity boom"
Uh yeah. Companies squeezed till blood comes out of their eyes have laid off every possible person they can while still keeping a pulse. It's a wonderful thing.
The public, alas, does not see the signs of life that economists do, as the downbeat views in the Bloomberg poll demonstrate. And as long as job security remains a concern, it's easy to understand why psychology may trump data.
Ya think. That's because we're all sitting in cubes where most of the cubes around us are empty because fellow employees that formerly resided there no longer do because they're now former employees.
Consumer spending has been rising for five straight months.
Must be in the U.S. on some other planet.
Is Businessweek another communist rag now?
Tarp money in the stock market perhaps ,,, no money to be made on interest by the banks .
Sooner or later the deficit chickens, to paraphrase Rev. Wright, are going to come home to roost. Then what? Also, what about the last wave of mortgage defaults due over the next year or so. No impact from them whatsoever? BO is an elitist. He’s taking care of those in the financial elite who support the schools and foundations while providing the Dems with contributions. What about Main Street? BO is trying to control risk and credit thereby controlling business. He’s put the hated bourgrise(Small business) in a vise. First raisung personal taxes which impact growth and hiring and considering a VAT which will impact incoming revenue by reducting available income for consumption.Also, when does the FED deal with all that money pumped into the system. Might, just might that increase interest rates and who will that impact?
Now, THIS is a decent premise. A logical approach to the effect politics has on the market is a good idea.
Too bad the rest of the article is BS. Struck me as "Obama is trying, we just need to keep giving him one more chance".
Business Week has been a far left rag for at least 40 years — and it remains so today.
All I know is political influence on the market is a berry berry bad thing.......I don’t need some peckerwood ‘journalist/whatever’ telling me what works and what don’t or why it don’t. I remember seeing what the hell their meddling did to my market accounts last year - I won’t be fooled again.
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