Economic Downturn Defying Solutions

nbcphiladelphia.com ^ | Aug 27, 2010 | JOHN W. SCHOEN

[BobP]

The economy is still growing, but just barely. The latest wave of downbeat economic data, including Friday’s report on gross domestic product, have renewed fears that we could be headed for the second half of a “double dip” recession.

It is even possible that the apparent economic recovery is a mirage, and that the recession that began in December 2007 never really ended.

Increasingly it seems that the unprecedented measures taken in 2008 and 2009 to revive the economy are not working because the recession is unlike any this country has seen in the past 60 years.

[BobP]

“After all the monetary, fiscal and bailout stimulus, the economy should be roaring ahead, as would be the case if the economy were coming out of a normal garden-variety recession,” Gluskin Sheff chief economist David Rosenberg wrote in a recent note to clients. “The fact that there has been no sustained response to all these efforts by the government to turn things around is testament to the view that this is not actually a traditional recession at all."

After the housing bust of 2007 and financial meltdown of 2008 brought a sharp contraction in growth, the government responded with time-tested policy responses. Those included $1 trillion of stimulus spending and tax cuts, together with the Fed’s $1.25 trillion cash infusion into a shaky mortgage market. For good measure, Congress approved $700 billion to bail out the battered banking system

Home sales fell last month to some of the lowest levels on record after government tax credits boosted sales in the spring. Business orders for capital goods like machinery and computers fell sharply last month. Forecasters expect next week's monthly employment report to show continued weakness in the job market.

“A liquidity trap it's basically when you try to push people to take more risks; you try to push banks to lend more; you try to push companies to to invest more and and they tell you no thank you,” he said. “So you're pushing on a string. Monetary policy can no longer force people to do things."

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The anomaly of the current recession is the anomaly of Barak Obama's political philosophy and worldview.

The Obama administration's reckless restructuring of the economy has greatly increased the level of uncertainty for anyone thinking about investing, starting a new enterprise, or making consumption expenditures.

This is all by design. The design of an administration that is firmly ensconced in the socialist doctrine of Marx, Linen, Stalin and Alinsky. Any hand wringing by the regime is just window dressing. The goal is state ownership of everything and everybody.

Big government types like big government. They hate the private sector and the free market. But most of all they despise this country. Remember former auto czar, Bloom: 'The free market is a joke.'

Obama never intended to 'deliver.' Obama intended to redistribute wealth. Its Obama's 'real' agenda. Look at the huge bills, health care, the financial bill and the stimulus package. All are filled with mandates and quotas to support special interest groups. Take a look at where our tax money is going. It’s going to specific groups and agencies where there is no return, not one dollar coming back. None of it is to help small business. That's why there are trillions of dollars sitting on the sidelines. People won't invest, won't hire and won't spend because you don't know what this moron will do next. The whole financial meltdown was caused by a form of reparations, giving homes to people who couldn't afford them.

And so, we're in deep, deep economic trouble. And these liberals are going to friggin' sing and dance along, all the way, as they dance off a cliff.

WAKE UP AMERICA!

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[dalebert]

how about the commie’s in power dumping all the garbage they have piled on the country , give back the pork , and stop spending.

[mazda77]

Increasingly it seems that the unprecedented measures taken in 2008 and 2009 to revive the economy are not working because the recession is unlike any this country has seen in the past 60 years.

Maybe Mr. Schoen should take a remedial course at a local community college or even high school before trying to analyze Free Market Economics 101.

[bill1952]

Increasingly it seems that the unprecedented measures taken in 2008 and 2009 to revive the economy are not working because the recession is unlike any this country has seen in the past 60 years Socialist policies do not create wealth. - They redistribute it and destroy the host in the process

Fixed

[Lonesome in Massachussets]

We’re screwed. The rest of the world has gotten tired of giving us goods: oil, clothes, cars, electronics, stuff, in return for scraps of paper.

Our government is so in over our heads that our grandchildren will be lucky to straighten it out. We are in some ways in a better position than Germany and Japan in 1945, but not much. At least they realized they had to start over and rebuild for generations. As long as we keep expecting magicians in Washington to suddenly and magically restore prosperity we are doomed.

[jospehm20]

How would this administration know that it is defying solution? It has not tried a solution yet.

[tired&retired]

Here’s a video that will make you sick.... It’s the bail out of Goldman Sachs..

http://www.youtube.com/user/fiercefreeleancer

[crescen7]

Another one joins the ranks of the willfully uninformed.

-What he calls the “recession” in December of 2007 would be a “massive expansion” by comparison to what is described as a “recovery” in August of 2010.

These idiots continue to dwell on the minutia of financial data; and ignore the fact that the current administration has fundamentally diminished the role of the private sector, and has almost nullified the principle of “private property.”

The solution to our economic woes is blazingly simple:

“Economic Liberty” = “Economic Activity”

As long as the current administration continues its policy of economic tyranny - the economy will continue to contract.

[Mr Ramsbotham]

The design of an administration that is firmly ensconced in the socialist doctrine of Marx, Linen, Stalin and Alinsky.

At least Linen has been hung out to dry.

[ex-Texan]

Please watch and listen:

Video: Gerald Celente on The Wallstreet Shuffle (02 Aug 2010)

There is no recovery. There was only a criminal corporate bailout. It all was huge fraud engineered by Obummer.

[mo]

Its really very simple. The clown that wrote this is obviously not very well read.

All anybody-including Ben Bernanke-needs to do is come to Free Republic.

Here they will obtain an education about the FairTax,about Deregulation,and about how lack of Freedom strangles markets.

Our Educated Elite...are neither.

[RayChuang88]

If you've seen my five-point plan for economic recovery:

http://www.freerepublic.com/focus/news/2578337/posts?page=23#23

We must implement all five to get the American economy really going again.

[Alberta's Child]

People won't invest, won't hire and won't spend because you don't know what this moron will do next.

This one line says it better than anything I've ever seen.

[Quix]

OThuga is most likely a low level flunky, puppet.

The engineering is done at these levels and above:

http://www.freerepublic.com/focus/religion/2519352/posts?page=2#2

[Leisler]

The end of the war destroyed, pretty much, the ruling elite and their self serving notions in Germany and Japan.

We have no such luck. Our elite have not let this event go to waste and have powered up.

[tacticalogic]

In related news it's reported that a sinking ship is defying efforts to drain the water.

Officials report that the have drilled dozens of holes in the hull to drain the water and thrown all the bilge pumps overboard in an effort to lighten the ship, but despite all their efforts, it continues to sink.

Officials said the failure was unprecedented and unexpected.

[Iron Munro]

"In related news it's reported that a sinking
ship is defying efforts to drain the water."

Obama:
Your Afirmative-Action tax dollars at work

[KeyLargo]

[Doohickey]

...the government responded with time-tested policy responses. Those included $1 trillion of stimulus spending and tax cuts, together with the Fed’s $1.25 trillion cash infusion into a shaky mortgage market. For good measure, Congress approved $700 billion to bail out the battered banking system.

Say what? The sad part is most readers will belive this lie.

[VOA]

“
Economic Downturn Defying Solutions
“

Except for the one solution that did work and can work:
Doing what Reagan did.
But Obama would rather America goes down in flames than follow Reagan’s example.