Why Won’t the Economy Recover?
OUR STORY SO FAR
**the Prez has dumped $ trillions in fiscal spending into the economy
**the HeadFed has pumped $ trillions into the banking system
Both are at least an order magnitude bigger than anything ever tried before or even fantasized about.
**unemployment is below 10%, but still at a painful 9.2%, and shows no sign of improving
**U6, the real unemployment rate, is a shocking 16%: one person in six is unemployed, underemployed, or given up looking for work
**GDP growth is at anemic 2%, and may actually fall below that level in the next few quarters.
**home prices have plunged at record rates, and are still going down
**consumer confidence is at record low levels
**the ‘middle class’ has lost so much wealth, that we will have to think of a new name for them
OK, I agree: none of this makes any sense. We are going 1 + 1 = 0?? I can hear the wisecracks now: well, smarty pants, what would you do? Nothing: do nothing. Let Congress cut taxes and cut the Federal budget. Tell Helicopter Ben to sit on his hands for a while. There is an old saying ‘when you are in a hole, stop digging’. Surely it must be obvious by now that none of this fiscal or monetary wheely-popping is helping?
Or, try this one: when your investment portfolio is in trouble, maybe you stop trading so much and take a break?