Presidents and the Economy

So is the president responsible for the accelerating recovery? No. Can we nonetheless say that we’re doing better than we would be if the other party held the White House? Yes. Do those who were blaming Mr. Obama for all our economic ills now look like knaves and fools? Yes, they do. And that’s because they are.

via Presidents and the Economy – NYTimes.com.

Nice summation of a basic rant re: Obama.  Now that Obama has achieved all of the economic goals of the Republicans in the 2012 election one would think there would be a chastised tone coming from the folks who were so terribly wrong.

However, because our media system does a fantastically horrible job of educating the populace about reality, the GOP has actually gained seats based on the results their constituents *believe* Obama has gotten, which have very little in common with the actual results.

Anyway, it’s a fun dynamic to watch, although a tad bit frustrating from the rational actor viewpoint.

Lipstick on an Economy

2008 deficit forecast soars to $407B – Sep. 9, 2008

NEW YORK CNNMoney.com — The budget deficit will jump by $246 billion to $407 billion this year, the Congressional Budget Office estimates in a report released Tuesday.

“Over the long run, growing budget deficits and the resulting increases in federal debt would lead to slower economic growth,” the agency said.

Last year, the budget deficit was $161 billion. The governments fiscal year ends Sept. 30. The agency attributes the jump to “a substantial increase in spending and a halt in the growth of tax revenues.”

And jobs…

Not only are home foreclosures at a record high in the US, but national unemployment also climbed above the psychologically important 6 percent level last month for the first time in five years – and it’s likely to go even higher in the months ahead, possibly throwing the economy into a tailspin as Americans pick a new president. The rate has steadily climbed this year from a cycle low of 4.4 per cent and now sits just below the peak of 6.3 per cent seen during the last recession. (See: Home foreclosures at record high in the US)

And our failed bank de-regulation experiment…

One part of the cure for the nation’s credit crisis is transparency. We cannot work our way out of our debts until we know how much we owe. That is a simple fact. We need an absolute ban on accounting shenanigans that range from off-budget operations to fictional asset values. No more Enron-style books. Now, could someone tell those who run the country?

The Bush administration still hasn’t resolved how to account for the takeover — they say, conservatorship — of mortgage giants Fannie Mae and Freddie Mac.

Peter Orszag, director of the Congressional Budget Office, said at a news conference, “Fannie Mae and Freddie Mac should be directly incorporated into the federal budget.”

Absolutely. Only this won’t be popular because its implementation would add big numbers to an already huge deficit. The most recent CBO budget and economic forecast is for a deficit of about $407 billion this year, growing to a record-breaking $438 billion in the fiscal year that starts Oct. 1. Those numbers don’t include what it will cost to bail out Fannie Mae and Freddie Mac.

[full article]

The simple fact of the matter is that Republican leadership and economic policy and international policy has led us directly to the place where we currently find ourselves.

Read on for the full story and understanding where the money went….

Continue reading

It’s Catching Up with Us

Paulson Says US Economy Has ‘Turned Down Sharply’ – Economy * US * News * Story – CNBC.com

“There is no doubt we’re having a tough quarter, that the economy has turned down sharply,” Paulson said.

But he said a swoon in the housing sector, which was largely to blame for the rough patch, was necessary.

“We need to have this correction. It’s not pleasant, but we need to have it,” Paulson said in reference to declining U.S. house prices and homebuilding.

This is going to be an interesting year or 5.

The Lost Decade : The Bush Years

US economy risks a ‘lost decade’ like Japan – Telegraph

The US could be facing a “lost decade” like that suffered by Japan in the 1990s as the markets fail to respond to interest rate cuts and the US Federal Reserve runs out of options, the head of one of the leading private equity firms said today.

  • Private equity pioneer says ‘golden age’ will return
  • Jon Moulton: Credit crisis is here to stay
  • Tim Collins of Ripplewood Holdings, said the Fed was “running out of policy alternatives” as it attempted to prevent a long recession in the US.

    Mr Collins, whose firm has significant expertise in Japan after leading the buyout and turnaround of Japan Telecom, said he believed a “sharp repricing of assets” was the most likely outcome.

    But he said: “My fear is that we will prolong it and suffer a death of a thousand cuts after we have exhausted all the options.”

    Starring a drunken coke-head turned international “liberator”, The Lost Decade : The Bush Years tracks a slightly-more-than-middle-aged protagonist on a world-wide journey as he turns everything he touches to crap.

    You didn’t think it was possible he could lead the U.S. into two recessions in a decade all the while raping the environment and scoring record profits for Big Oil and Big Money, but you were wrong.

    You didn’t think it was possible that the mighty mighty U.S. dollar would be worth less than a Canadian loony.

    You didn’t think he would be able to sell a war of choice on fear and b.s. either, but we all know how good your judgment is, Americanos.

    Not my fault, I voted for Kodos.