It ain't the economy, stupid

New York Daily News ^ | 7/21/02 | LOU DOBBS

[kattracks]

But the Democrats, with the aid on the NY Slimes, and other lamestream media are doing everything in their power to convince the public that it IS the economy. They couldn't care less about the damage being done to investors. or the economy, or the country. They want power and they'll do whatever it takes to get it.

[RaceBannon]

I live in Connecticut. Someone want to tell me where we had an 8% jump in the economy here??

[steve50]

Those figures are straight from the Ministry of Plenty, now go buy stocks

[eeriegeno]

I'm still waiting for the first CEO, Analyst, Broker, or politician to be indicted for causing this market to collapse! Then, and only then, will investors get back into the market.

[Sam Cree]

Thanks for posting this interesting little article.

[The Raven]

Want to see the market go through the rooF. Want to see the GNP go through the roof?

Reduce government.

[2Trievers]

"The problem with the markets isn't the economy. The problem is the perceived lack of commitment by Washington, Wall Street and Corporate America to deliver real reforms and real accountability -- real soon. "

Perception = fear ... But flighty human nature could end these perceptions much faster, more quickly even than voters forgot why they liked the first George Bush in 1992.

We have no political crisis, no Cold War, no rising interest rates or inflation fed by oil price hikes, no crisis in American manufacturing. Corporates are readjusting their earnings with tighter accounting practices. Neither Greenspan or Bush can do much to change the fears of the investors. In two years, if you didn't buy now, you'll probably be kicking yourself. &;-)

[bimbo]

Someone want to tell me where we had an 8% jump in the economy here??

Good question ... everyone is now aware that companies cook their books, but NEVER to the extent of Chef Boy-ar-government! Anyone giving credence to government numbers on inflation probably has never bought a car, or gasoline, or a Big Mac, or even a cantaloupe.

[It'salmosttolate]

Job Losses on FR

All Our Jobs Are Belong to China

[Caipirabob]

The President says we're suffering from a "hangover."

How utterly and completely appropriate an analogy!

I can mentally picture some corporate logo or icon waking up in bed after "partying" during the Clinton years, only to roll over and see that they've merged with a "Dot.Com"...LOL!

[PGalt]

My thoughts exactly.

It ain't the economy, stupid

It is the criminality. Why put your life in danger by living in a crime infested neighborhood? Why risk your hard earned money in a game of pick-pocket roulette, where there is no risk for the person picking your pocket. Talking point "restoring confidence"..to a confidence game is a joke. Confidence is restored to a neighborhood, a city, a country or a market when criminals are rounded up and removed. Throwing money at the market is like giving loans to Cuba or the Taliban.

[olliemb]

But the democrats should take credit for this market mess. Lieberman in 1993 with 88 senators obstructed expensing stock options.

In 1995 Chris Dodd hindered investors efforts to win lawsuits against firms and auditors that may have misled them. This law eased penalties on misbehaving CEOs.

In 2000 Toricelli overruled SEC Levitt attempts to end big accountng firms practice of consulting and went as far as threatening to slash Levitts budget.

The point is that the economy is doing well, but the corporation mess is presently being dealt with. And the democrats better quit pointing fingers.

[Whilom]

Anyone who believes inflation is 1.2% hasn't been to the grocery store lately -- or bought housing, transportation, or insurance (auto, home, and health), been sick, needed a prescription, pumped gas into the family heap, paid taxes, or been to a football, basketball, or baseball game.

[Lessismore]

Someone want to tell me where we had an 8% jump in the economy here??

The Ministry of Truth is cooking the books.

For example, in consumer spending one of more favorable numbers has been autos. However, I don't believe that they have been subtracting the present worth of the 0% loans and the reduced rate lease incentives. So booking the retail price of the car badly overstated the value of the actual transaction.

Furthermore, one of the best performers in retailing is WalMart. As the flow of consumer goods shifts from traditional retailers to WalMart, less of the value chain stays in the US economy. WalMart's model is to move the container from the port to a big distribution center, break goods down and send them to huge, warehouse like stores with minimal service, and maintain strict inventory control over the import and distribute process. I don't think the GDP calculations reflect this shift in retailing processes.

[Soren]

I think Lou misses the point. His focus is on income statement statistics, and he ignores the balance sheet, which is a mistake. It's all about DEBT. This economy has structural problems, namely excessive debt levels. Here is an anology. I could appear to be a millionaire for quite a while. I could buy a fancy house with little down, buy a fancy car, throw lavish parties by putting it on my credit card, and live the high life by drawing down my retirement savings. Everything would appear wonderful, until it all collapsed. We see the same thing in the economy. Things appear strong, until we look a little closer and see a colossal trade deficit, federal budget deficits, state deficits, high levels of corporate debt, $8000 average household credit card debt, mortgage payments as a percent of disposable income at an all time high, etc.

I think Bush's strategy is politically risky and misguided. I realize he is trying to calm the markets, but by telling everyone the economy is strong, he lets Clinton and the Fed off the hook when the economy turns out to be weak. He will then receive the blame.

[Arleigh]

Your Post #18 is right on target!

[supercat]

I think Bush's strategy is politically risky and misguided. I realize he is trying to calm the markets, but by telling everyone the economy is strong, he lets Clinton and the Fed off the hook when the economy turns out to be weak. He will then receive the blame.

Agreed. He needs to focus on revealing that companies like Enron which seem to be have become worthless today were in fact just as worthless during the Clinton years, but Clinton prevented anyone from finding out about it.