Do, or do not. There is no 'try'. - Yoda

Things are not getting better at all

by AlexinCT

The usual MSM DNC propagandists have been real hard at work spinning for the WH on healthcare, unsuccessfully - thank the lord! - I might add, but there is a lot more. If you hear the press these days, smaller than predicted job losses and any other such bad news, is all a sign of economic recovery and how good things are getting. Of course back when the guy in the WH had a (R) next to his name, having a low 4% jobless rate was a sign of doom. Now 9.6% is still a sign of good times because supposedly some other stuff when looked at just the right way, indicates growth. There are constant stories parading prominent people that are willing to tell us that recovery is right around the corner! New home sales are up, so the crisis government meddling in the homeowner mortgage industry and the security trading tied to that caused, has to be coming to an end! The DOW Jones is even going up! After all, job creation is the last thing that happens when an economy bounces back from a down turn.

But the truth is that there is no rebound at all. The hostility towards the private sector by the current collectivists has served to actually create another condition that drives down the market. While reported on the back pages, as our government sets new deficit spending records, tax revenue is down big time. For the slow people, that means that when the real calculations come in the deficit spending will be even higher. And it gets worse. Here are some words of wisdom for you:

More than one in every eight homeowners with a mortgage was behind on home loan payments or in some stage of foreclosure at the end of the second quarter, as mounting unemployment aggravated the housing crisis, the Mortgage Bankers Association said on Thursday. The percentage of loans that were in foreclosure or at least one payment past due rose to 13.16 per cent, the highest increase since the MBA began keeping records in 1972 and a jump of more than a percentage point since the first quarter.

Jay Brinkmann, chief economist at the MBA, said signs were growing that mortgage performance is being affected more by unemployment than by the structure of risky home loans, indicating a new stage in the foreclosure crisis that may not be easily addressed by government loan modification programmes. While the proportion of foreclosures started on borrowers with subprime adjustable-rate mortgages fell dramatically in the second quarter, foreclosure starts on traditional prime fixed-rate loans saw a dramatic increase. Prime fixed-rate loans accounted for one in three foreclosure starts at the end of the second quarter. A year ago they accounted for one in five. “There has been a shift in the problem from one driven by the types of loans to one driven by macro problems in the economy and drops in house prices,” said Mr Brinkmann.

But wait a minute, the collectivists will tell you, Obama and the donkey congress are doing things to help us. They passed that stimulus bill didn’t they? Well, check out this example of what the stimulus money is actually doing:

CHICAGO, Aug 20 (Reuters) - While businesses across the United States slash jobs, state and local governments have actually increased employment slightly since the economic recession began in December 2007, according to a report released on Thursday. “As is the typical pattern in recessions, overall state and local government employment continued to grow after the start of the recession, although there has been a small decline since the August 2008 peak,” said Donald J. Boyd, author of the report by the Rockefeller Institute of Government, in a statement.

Total employment in state and local government rose in 30 states, fell in 16 and was unchanged in four during the last year, the report found. Governments have added about 110,000 jobs since the recession began, according to the report by the Rockefeller Institute, which is the public policy research arm of the State University of New York. The recession’s impact on government employment typically lags that of the private sector, Boyd said. “Further employment reductions are almost certainly on the way,” he said

Get that? The stimulus money is disproportionately propping up government - this example is at the state level, but it is no coincidence that in this down economy DC is the city with top job opportunities in the nation, practically all of them government or government related jobs - and by default the democrat’s constituencies, while doing nothing for the private market. It is a giant joke and has had negligible impact on the private sector – the one that actually gets things done – if any. In fact, these collectivists have used close to a trillion of our dollars to help prop up their fiefdom. That’s why this thing is really a patronage bill. And the disgusting thing is that these leftists are not giving up on piling up even more debt on us citizens. To buy votes. But this behavior has consequences. And idiotic lies like this by the left, can’t cover the truth up. We are still heading down, and these leftists are just speeding that downfall up.

Cross posted at Wasting time with Alex

UPDATE: Check out how much worse things are going to get:

WASHINGTON (Reuters) - The Obama administration will raise its 10-year budget deficit projection to approximately $9 trillion from $7.108 trillion in a report next week, a senior administration official told Reuters on Friday. The higher deficit figure, based on updated economic data, brings the White House budget office into line with outside estimates and gives further fuel to President Barack Obama’s opponents, who say his spending plans are too expensive in light of budget shortfalls. The White House took heat for sticking with its $7.108 trillion forecast earlier this year after the Congressional Budget Office forecast that deficits between 2010 and 2019 would total $9.1 trillion.

Get that? Obama plans to add another $9+ trillion dollars to the debt. Many like me scoffed at the idiotic idea democrats whom demonized Bush for it, would do a better job with government spending. I could not believe so many people did not realize that it was the democrat controlled congress, which they held a majority in after the 2006 elections, and which by law decides government spending, that actually allocated all that spending to those budgets in the last 2 years of the Bush administration. Even worse, the media helped the democrats whom had drastically raised deficit spending, on purpose and precisely so they could paint the republicans - which I must say are not without blame - as fiscally irresponsible, create the illusion that they, the democrats, would be more fiscally responsible. What hogwash. Now they project that the democrats will add another $9 trillion, and my belief is that this is still the low end because if they get their way on healthcare that number will likely double, to our deficit! The American people better wake up and hammer these fools, or we will soon be as shitty and broke as those banana collectivist republics that the left so adores and admires. 

Comments

Posted by on 08/21/09 at 11:06 AM from

When people tell me that the economy has recovered I merely ask them why the stock market is still 4000 points down and where is all that money I used to have in my 401(k)?

Posted by on 08/21/09 at 11:12 AM from

When people tell me that the economy has recovered I merely ask them why the stock market is still 4000 points down and where is all that money I used to have in my 401(k)?

All things are relative and time scale is vitally important.  The DJIA is down from its all-time highs, but it’s about 3000 points higher than it was a few months ago.  Likewise, you almost certainly have more money in your 401k now than you did a few months ago, even if you haven’t recouped all of your losses.

Posted by on 08/21/09 at 01:10 PM from

You have to shrink the scale pretty freaking small to call it an improvement.  And the fact that year’s crash was a massive over-adjustment caused by a panic isn’t a good yardstick to use either.

Unemployment is at Carter administration levels, and is getting worse.  The home sales are by vultures picking up undervalued properties.  We have price deflation.

The economy is still screwed big time, what we have is the stock market actually reaching what should have been the true bottom a year ago.

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