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Title: Time Is Running Out for Obama
Source:
TheStreet.com
URL Source: http://finance.yahoo.com/news/Time- ... topStories&pos=8&asset=&ccode=
Published: Jun 7, 2010
Author: ByPeter Morici
Post Date: 2010-06-07 17:31:25 by WhiteSands
Keywords: obama, liberals, jimmy carter II
Views: 7839
Comments: 20
Either President Obama fixes what's broken in the economy, or he will be remembered for spending his entire first term blaming George Bush. Last week's jobs report was terrible for the 11th month in a recovery. With nearly $800 billion in stimulus spending at its point of maximum impact, federal employment -- net of temporary census jobs -- was up a mere 1,000 in May. Private-sector employment was up an insignificant 41,000, only one-fourth the pace of the previous two months. Retailers are again cutting employment, as consumers, turned pessimistic, flee the malls. Making worse a stock market panicked by European debt woes, the President claims his policies are working. After all, health care reform and the prospects of much higher taxes and more regulations are causing U.S. businesses to rush out and hire everyone they can before all the able-bodied are gone. The economy is skating precariously on the edge of a second dip -- this time into a depression -- and the president should radically alter policies to ensure that doesn't happen. The private sector provides good examples. The Motor City is motoring again. U.S. automakers are gaining market share over import rivals, because Ford has convinced car buyers that Americans can still make quality vehicles -- without a government bailout or blaming prior management for a heavy debt burden. Now Americans are finally willing to test drive not just Fords, but GM and Chrysler cars too. It's amazing what a focus on the customer can do! Now is the time to apply that thinking to Washington. The recovery is faltering because U.S. businesses lack customers to justify new employees and the capital to expand, and they want help on both scores. Demand for U.S. products is growing just 2% a year because of a gapping trade deficit -- purchases of oil and from China are sending too many dollars abroad that don't return to buy U.S. exports. Businesses don't have the capital they need, because the TARP did not fix the balance sheets of the 8,000 regional banks, which finance most small and medium-sized businesses. Instead, it was used by the Bush and Obama administrations to finance more trading and big bonuses at Wall Street banks. Rather than denying the lousy jobs report, President Obama should use it to justify tackling the trade deficit and shortage of capital with the same energy he condemns his Republican predecessor, whose policies he continues: fruitless talks with China and soft financial reforms. Now, China, thanks to its artificially undervalued yuan, is suffering inflation, and is raising interest rates. And, Europe has run through the bond market's patience and must cut spending. Those policies are hauntingly Hoover-esque and could cast the global economy into a long and painful depression, unless U.S. policy counters. The U.S. already has the most stimulative fiscal policy imaginable and rock-bottom interest rates, but President Obama has other options if he can well up the courage to ignore his Ivy League advisers. Detroit has the technology to produce much more fuel-efficient vehicles now, and a national policy to rapidly build those would push out imported oil and create many new jobs. China buys dollars and sells yuan to keep its products artificially cheap on U.S. store shelves, and Beijing will not quit this mercantilism until the U.S. acts. The U.S. should tax dollar-yuan conversions to raise the price of Chinese imports to their true cost to the U.S. economy. This would increase demand for U.S. manufactured goods and impel China to refashion policies toward internally driven growth, lower inflation and more reciprocally beneficial bilateral commercial relations. The creation of an entity like the Resolution Trust Corp., which dealt with the Savings and Loan Crisis, could relieve regional banks of troubled loans and mortgage-backed securities, make a profit for taxpayers, and get banks lending to businesses and homebuyers again. At some point a successful president must abandon textbook economics, embrace pragmatism and stop blaming his predecessor for the hand he was dealt. For Barack Obama, that time is now.
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#1. To: WhiteSands (#0)
I will guarantee you one thing. Obama is not going to fix anything. Why? Because A.) he doesn't have any experience running anything but his mouth and B.) he's a retarded left-wing ideologue / academic who doesn't understand shit about the real world. My advice: stop spending. save. buy things that wont' spoil. hunker down. prepare for the worst. Cause we haven't seen the worst yet.
100% agreement.
For approximately 72K, BP Oil bought Owe-bama. And as President, he let them Spill, Baby, Spill! Its documented.
What kind of moron writes or thinks this is a recovery? Libtard nutjob? And I agree with jwpegler the worst is yet to come.
There's that fighting American spirit!!
I've heard the survival nonsense as well as seen it first hand for over 40 years...(eyes rolling) I've always found it amusing that when you listen to some of them or to a standard brand conservative, they are the ones more likely to advocate summary executions and other abridgments of rights or abdications of due process than any other group. They promote what they fear...
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
Yes, but in their defense, they only promote it for those that deserve it. You know, the ones that have it coming. Darkies. Fags. Weirdo's. Foreigners. Anyone who's different. Pagans. Those types.
Personally, I blame Canada...
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
You answered your question correctly, as the thread demonstrates.
For approximately 72K, BP Oil bought Owe-bama. And as President, he let them Spill, Baby, Spill! Its documented.
I think people agree it's Yankees that are the cause of most of the troubles.
Well there's only one thing to do to those types then...waterboard...hang...execute and waterboard again...
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
Perhaps you can help me. Boofer wrote the above to Gump that this thread demonstrates that a certain type of person validates a recovery. Besides you and me cracking wise about who is the better global citizen, has anyone else popped up to actually discuss the merits of what Gump claimed or is Boofer just making shit up again?
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
Yes, I'll decode the boof-speak for you. Because we didn't chime in and say that a recovery is NOT happening therefore we think, and proclaim, that a recovery IS happening. We yakked about other things and therefore proved his point. Clear?
Didn't "Tuesday" figure in some how tho? Or am I over rationalizing?
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
It's worse. President Obama and Treasury Secretary Geithner were trying to putting on a happy face, but the markets weren't buying. They have tumbled worldwide since the latest payroll data. But instead of overreacting, the markets may only just be waking up to the real bad news. 1. Look out ahead. We already know that when you strip out the short-term Census jobs, May's jobs growth was a pitiful 41,000. But what people haven't realized is that the leading indicators for June are even worse. TrimTabs Investment Research Inc. tracks the real-time jobs picture by monitoring income tax deposits at the Treasury. And these have suddenly started falling. Based on the latest data, the firm predicts the economy will actually lose up to 200,000 jobs, net, in June. "The big news is that we have a job loss of about 200,000 coming in June," says Trim Tabs' Madeline Schnapp, "and the market isn't ready for it." It's not just the stock market. You can bet that the administration -- and the country -- isn't ready either. Remember, we need to create about 100,000 just to keep up with population growth. 2. One and a half million people have 'disappeared'? The government says the unemployment rate "edged down" to 9.7% -- keeping it below the politically sensitive 10% level. Read more jobs coverage. But that's only because about one and a half million people have just, miraculously "disappeared" from the official labor force. A million and a half people disappearing? It sounds like a crazy conspiracy theory. But there it is, buried in the fine print of the government's own data. From May 2009 to May 2010, the U.S. "civilian non-institutional population" of prime working age -- 20 to 64 -- expanded by one and a half million, 180.5 million to 182 million. Yet over the same period the official tally of the labor force over age 20 held steady at just 148 million. What happened to those extra people? The Bureau of Labor Statistics doesn't have a full explanation. "We don't have direct questions (in the survey) addressing that fact," said a spokeswoman. But many of the disappeared are "unemployed who have decided not to look for work any more," or who haven't looked for work recently. Anyone who hasn't actively sought a job in the last four weeks vanishes from the rolls. People dropping out completely are not a bullish sign — unless, perhaps, one is measuring the unemployment figures for the government. 3. Some of the new "jobs" may not even exist That's because they're being counted by the Federal Department of Guesswork. Ever since 1994, say economists, Uncle Sam has been using some statistical, er, "adjustments" to the core jobs data to come up with the, er, "true" picture. It will surprise no one that these "adjustments" make the data look better, rather than worse. The government makes estimates about new companies being started up as well as jobs being lost. Those adjustments may be adding as many as half a million extra "jobs" to the core figure, says independent economist John Williams at Shadow Government Statistics. In previous recessions, these adjustments may have had some justifications, because new companies formed very quickly in the recovery. But this recession has been unlike any other in our lifetimes, because it was caused by too much debt rather than economic overheating. So the recovery has been different as well. The slump in bank lending and the money supply in the past year suggest new companies are probably being formed far more slowly than in past recoveries, if at all. Bottom line: many of those jobs may not exist. 4. The private sector picture may still be in recession Some recovery: The number employed in the private sector is still about 900,000 below where it was even a year ago, and about 8 million below where it was in 2007. And remember, it has to keep growing just to stand still, because the population is growing. "There's practically no growth in private sector employment," says Gluskin Sheff strategist David Rosenberg. Jobs growth was anemic even in the parts of the economy allegedly leading the recovery, such as manufacturing. And now, he says, many leading economic indicators have started to turn down again. The jobs growth is so slow, Rosenberg says, that by his calculations "it is going to take years, probably five to seven years, before we recoup the employment (lost) from the Great Recession," he says. Five to seven years? "There's a significant chance," he adds, "that for the first time ever we will go into the next recession without having seen a new peak in employment." 5. And as for earnings... In the quest for some more cheerful news, the government said for those who do have jobs, average hourly earnings were up 1.9% from a year ago. Good, yes? Er, not really. The government also reported that those workers produced 2.8% more goods and services per hour. So they actually got paid about 1% less for each widget they made, TV they sold, or meal they served. Oh, and over the same period consumer prices rose 2.2%. So even those lucky enough to be working have gone backwards — before taxes. Your ignorance runs incredibly deep, site puppy.
For approximately 72K, BP Oil bought Owe-bama. And as President, he let them Spill, Baby, Spill! Its documented.
Anyone who was on this board Friday @ 835AM knew the number was not good, Boofer. How many times more should we go ****GASP**** in response to yet ANOTHER post pointing out what is already known?
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
Tom Sullivan said this was a 'much needed correction' and he ought to know being Rush's stand in and all.
Making the world safe for United Fruit.
Boofer wrote the above to Gump that this thread demonstrates that a certain type of person validates a recovery. Besides you and me cracking wise about who is the better global citizen, has anyone else popped up to actually discuss the merits of what Gump claimed or is Boofer just making shit up again? It must be talking point lingo and attempts at manipulation. Personally I would give up on you two. lol They act like this site is one huge megaphone to the world with the masses eagerly awaiting his master's voice.
Making the world safe for United Fruit.
Do I detect the 2010 Republican campaign motto: "Give Up; Go Hide!"?
That makes two of us...for one of us anyway...
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
(laughing) Uh huh.
For approximately 72K, BP Oil bought Owe-bama. And as President, he let them Spill, Baby, Spill! Its documented.
#2. To: jwpegler (#1)
My advice: stop spending. save. buy things that wont' spoil. hunker down. prepare for the worst. Cause we haven't seen the worst yet.
#3. To: WhiteSands, jwpegler, Badeye (#1)
Last week's jobs report was terrible for the 11th month in a recovery.
#4. To: jwpegler (#1)
buy things that wont' spoil. hunker down. prepare for the worst. Cause we haven't seen the worst yet.
#5. To: Abu el Banat (#4)
#6. To: war (#5)
#7. To: Abu el Banat (#6)
#8. To: reaganisright (#3)
What kind of moron writes or thinks this is a recovery? Libtard nutjob?
#9. To: war (#7)
#10. To: Abu el Banat (#9)
(Edited)
#11. To: Abu el Banat (#9)
You answered your question correctly, as the thread demonstrates.
#12. To: war (#11)
#13. To: Abu el Banat (#12)
#14. To: Abu el Banat (#12)
The news on jobs isn't as bad as it seemed on Friday.
#15. To: Badeye (#14)
#16. To: Badeye (#14)
#17. To: war (#11)
(Edited)
Perhaps you can help me.
#18. To: Abu el Banat (#4)
There's that fighting American spirit!!
#19. To: mininggold (#17)
Personally I would give up on you two.
#20. To: mininggold (#16)
Tom Sullivan said this was a 'much needed correction' and he ought to know being Rush's stand in and all.
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