Happy Days Aren't Here Again

Happy Days Aren’t Here Again
by Peter Schiff, Euro Pacific Capital | July 31, 2009
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Have you heard the great news? The recession is over! It’s true; I saw it on TV. Why fret about growing unemployment lines when banks are paying big-time bonuses again?

Proof of the turn was apparently revealed by the 2nd quarter GDP figures that showed that the economy declined by only 1%. After four consecutive quarters of negative GDP, the green shoots now assume that growth will resume over the summer. But before we pop the corks, it may be worthwhile to ask, “what really has changed, and what is responsible for our new lease on life?”

In truth, because of the continued profligacy of the government and Federal Reserve, the imbalances that caused the current recession have actually worsened. We are now in an even deeper hole than when the crisis began. Rather than wrapping up a recession, we are actually sinking into a depression. If things look better now, it’s just because we are in the eye of the storm.

We must remember that recessions inevitably follow periods of artificial growth. During these booms, malinvestments are made which ultimately must be liquidated during the ensuing busts. In short, mistakes made during booms are corrected during busts – and in the recent boom we made some real whoppers. We borrowed and spent too much money, bought goods we couldn’t afford, built houses we couldn’t carry, and developed a service sector economy completely dependent on consumer credit and rising asset prices. All the while, we allowed our industrial base to crumble and our infrastructure to decay.


http://www.financialsense.com/fsu/editorials/schiff/2009/0731.html

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sums up how I feel about the economy

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=6195796&mesg_id=6195796

End of discussion.

"Recovery" and "Recovered".

We have turned the corner, the recession is over and we are on the road to recovery. That being said, just because it's getting better doesn't mean it won't be "felt" by the average consumer until the recovery is over.

Actually, if you have followed the financial crisis at all this article doesn't apply at all to the current crisis. Honestly, many economists predicted this crisis, and it was really difficult at all to predict if you follow Keynesian Economics at all.

Bottom line, it was a lack of regulation and rampant speculation. Hindsight is 20/20.

unfortunately, although we know how to fix some of the regulation problems, there is still a lot of speculation over the best way to handle the rest of them. And that's only the current problems. Creative minds will not only come up with innovative ways to improve the quality of life, but also innovative ways to circumvent the law.

that we have to reduce the debt?? Isn't that part of why Obama is pushing so hard for Health Care reform, why he has asked his cabinet members to trim costs, why Gates has proposed spending cuts?Winding down our involvement in Iraq? Also I read that this has been the highest period for people saving money. If I am wrong correct me. I get the point he is trying to make but I don't agree with all of it.

I went to the site to see what I was missing (something of fact must be contained in this piece). Nothing.

:sarcasm:

Meanwhile millions of people are jobless, have lost their homes and are living in tent cities.

But it's ALL GOOD for those who still have jobs and can afford a new car. Nice logic. NOT! :puke:

Akin to giving an alcoholic a bloody mary for the hangover. Bernanke is already talking about a "jobless" recovery, while showering his banker friends with liquidity. They are just trying to reinflate the bubble!