Jobe01 (96.47)

Is The Worst Behind Us?

September 29, 2009 – Comments (2) | RELATED TICKERS: QID , DVAX , UCO

That's a good question.  Most of the so-called experts, financial analysts, are crowing about how the stimulus package has revived the U.S. economy.  Accordingly, U.S. automaker production is up, the banks are lending again, tech companies are preparing to spend a ton of money on the new cycle of upgrades, good times are just around the corner.  In other words, '2 cars in every drive and a chicken in every pot'.

Nothing could be further from the truth.  What the pundits/lemmings will not point out is that the stimulus package, as they call it, has done nothing but provide a bump in the road for an economy headed into deep recession.  Let me point out, if I may, that unemployment is a tad shy of 10%.  We haven't seen the likes of that since the 1970s.  The erstwhile rebound in the automobile industry is a sham.  The pop we saw in production during the summer was due completely to the government giveaway program 'cash for clunkers'.  The irony of that is that the auto industry, in their short-sighted habit, now thinks good times are here again.  They're ramping up production.  What a laugh that one is.  The giveaway of U.S. taxpayers funds to undeserving banks and auto companies is nothing short of theivery.  Most of those taxpayers funds cannot be accounted for.  When the government can decide who survives (AIG) with government give aways, and who doesn't (LEH), then the fox is in the henhouse.

The increased spending in the economy, while noticeable, was completely paid for with governments funds.  Don't forget folks, we ultimately pay for that.  Also, keep in mind, that although banks have loosened their death grip on loans a tad, the lower interest rates will spiral out of control soon enough.  When was the last time a country of our size had 14 Trillion in debt?  Uh, never.  The interest alone on such massive debt is mind boggling. 

I guess one could point out that energy costs are substantially lower than they were a year ago.  True, quite true.  Again, a facade, once China's economy gets into full swing again, expect that cost to rise dramatically, once again.  With the skyrocketing debt costs, rising energy costs, increasing interest and inflation, the joke of a rebound will be just that within 12 months.  Again, the lemmings will change direction and head for the cliff.

Our economy is doomed unless we throw the bums in Washington out.  We, as a country, have to get a handle on our spending.  If we can't manage our own budgets, how to we expect the banks to manage theirs? It's hypocrisy to the nth degree.  One hundred years from now historians will look back on this time in American history and lament about the power that was.

Jobe