Obama's Rhetoric Is the Real 'Catastrophe'

[SXSMITH]

Bradley Schiller Says Barack Obama Should Stop Comparing Our Financial Crisis With the Great Depression - WSJ.com

Mr. Obama's analogies to the Great Depression are not only historically inaccurate, they're also dangerous. Repeated warnings from the White House about a coming economic apocalypse aren't likely to raise consumer and investor expectations for the future. In fact, they have contributed to the continuing decline in consumer confidence that is restraining a spending pickup. Beyond that, fearmongering can trigger a political stampede to embrace a "recovery" package that delivers a lot less than it promises.

When you Obamabots wake up and realize what you've done, you'll be acting like this.

[dark_isz]

Interesting opinion there. Let me paraphrase: Obama is wrong for telling us the economy is in bad shape.

So, what should Obama be telling us about the economy? Bald faced lies?

"The fundementals of our economy are strong?"

Also, I may be wrong, but I believe the unemployment rate is calculated differently than it was during the Depression. I am surprised Mr. Schiller failed to mention that in his opinion piece.



Official unemployment rates (including U-6 rate) available at the Bureau of Labor Statistics website:

Table A-12. Alternative measures of labor underutilization

[SXSMITH]

Originally Posted by dark_isz

Interesting opinion there. Let me paraphrase: Obama is wrong for telling us the economy is in bad shape.

So, what should Obama be telling us about the economy? Bald faced lies?

"The fundementals of our economy are strong?"

A leader typically instills confidence in the people he's trying to lead.

Not scaring people into speding a trillion for his pet projects.

He doesn't need to lie. But he should stop saying things are worse than they are.

Or, he can simply scare you into another trillion (or 3) in the coming months.

[bassjones]

There's a great difference between "Worst economy since the Great Depression"; "Economic Crisis"; etc... and "Look, things aren't great right now, but we can turn it around. Not me, but YOU, the American people who have always made this country great. Now is not the time to panic, but the time to reflect on past mistakes and work towards rebuilding our economy to be all that it can be." I'd get on board with the guy who said the latter. The guy who's saying the former is trying to set himself up to be blameless when this horseshit "stimulus" bill drives us INTO the worst economy since the Great Depression.

[SlowGoose]

We hates the Obamases, precious!

[baldheadeddork]

That (very cool) graphic is out of date. U6 went to 13.9% last month.

[dave b]

I think he should confine himself to manipulative cheerleading and sloganeering.

That way, those of us who take comfort in the making of complex issues into easily-remembered (and repeated) bumper stickers will be comforted.

We will then go shopping.

There will be no need to "put away childish things" after all.

db

[baldheadeddork]

Originally Posted by SXSMITH

Bradley Schiller Says Barack Obama Should Stop Comparing Our Financial Crisis With the Great Depression - WSJ.com

Yeah, then there's this point of view:

Decade at Bernie’s
By PAUL KRUGMAN

By now everyone knows the sad tale of Bernard Madoff’s duped investors. They looked at their statements and thought they were rich. But then, one day, they discovered to their horror that their supposed wealth was a figment of someone else’s imagination.

Unfortunately, that’s a pretty good metaphor for what happened to America as a whole in the first decade of the 21st century.

Last week the Federal Reserve released the results of the latest Survey of Consumer Finances, a triennial report on the assets and liabilities of American households. The bottom line is that there has been basically no wealth creation at all since the turn of the millennium: the net worth of the average American household, adjusted for inflation, is lower now than it was in 2001.

At one level this should come as no surprise. For most of the last decade America was a nation of borrowers and spenders, not savers. The personal savings rate dropped from 9 percent in the 1980s to 5 percent in the 1990s, to just 0.6 percent from 2005 to 2007, and household debt grew much faster than personal income. Why should we have expected our net worth to go up?

Yet until very recently Americans believed they were getting richer, because they received statements saying that their houses and stock portfolios were appreciating in value faster than their debts were increasing. And if the belief of many Americans that they could count on capital gains forever sounds naïve, it’s worth remembering just how many influential voices — notably in right-leaning publications like The Wall Street Journal, Forbes and National Review — promoted that belief, and ridiculed those who worried about low savings and high levels of debt.

Then reality struck, and it turned out that the worriers had been right all along. The surge in asset values had been an illusion — but the surge in debt had been all too real.

Anyone who isn't worried about an economic collapse either isn't paying attention, or is so willfully delusional that they shouldn't be trusted to dress themselves.

[dave b]

Krugman knows his shite.

db

[clockworkjon]

Originally Posted by bassjones

There's a great difference between "Worst economy since the Great Depression"; "Economic Crisis"; etc... and "Look, things aren't great right now, but we can turn it around. Not me, but YOU, the American people who have always made this country great. Now is not the time to panic, but the time to reflect on past mistakes and work towards rebuilding our economy to be all that it can be." I'd get on board with the guy who said the latter. The guy who's saying the former is trying to set himself up to be blameless when this horseshit "stimulus" bill drives us INTO the worst economy since the Great Depression.

I agree. Also, its all in how you phrase it. If you go to the doctor, and have a serious illness, should he tell you "Holy shit, you'll probably be fucking dead in 6 months if you don't come up with miracle right now! Don't buy any fucking green bananas if you know what I mean!" or "You have a serious illness, but it can be treated several ways. I can't promise any or all of the treatments will work, but we'll keep trying and not give up."

Neither ways hide the truth, both call attention to the seriousness of the issue. But while one scares the shit out of you and may cause you to act rashly, the other at least give you a reason to keep trying and at least be optimistic about the future.

I talk to clients now that practically have a deathwish just so their family can collect on life insurance. They remember how their parents talked about the Great Depression and it scares the hell out of them. So instead of coming up with a plan to still retire on time or possibly a few years later, they're already giving up.

[ty454]

Originally Posted by dave b

Krugman knows his shite.

db

Krugman's "The Great Unraveling" is next in my pile of doomer books. I'm reading so many doomer books lately that I have wood 24/7. It's a doomer-porn fest.

My favorite quote from my current book is "Americans will wake up to find their economy has evaporated like the morning mist"

Brings a tear to the eye.

[dark_isz]

Originally Posted by baldheadeddork

That (very cool) graphic is out of date. U6 went to 13.9% last month.

I know, I know, sorry.

I did include the link at the end of my post to the official Bureau of Labor Statistics unemployment numbers for the sticklers!

[BigArn]

Originally Posted by baldheadeddork

That (very cool) graphic is out of date. U6 went to 13.9% last month.

Now I heard that we should hit 9% at the end or 2009. And I'm not sure of who said it, but Moodys comes to mind. Again, I heard this on the radio this morning.

[baldheadeddork]

Originally Posted by BigArn

Now I heard that we should hit 9% at the end or 2009. And I'm not sure of who said it, but Moodys comes to mind. Again, I heard this on the radio this morning.

Nine pecent is the concensus estimate for the peak this year. But from the beginning of this, you haven't lost money if you've bet on the over for any estimate from bankruptcies, bank failures, job losses, etc.

I think we'll be closer to 9.75-10. U6 will get damn close to 20.

[baldheadeddork]

Originally Posted by dark_isz

I know, I know, sorry.

I did include the link at the end of my post to the official Bureau of Labor Statistics unemployment numbers for the sticklers!

No apologies - thanks for posting that. I wish my posts were as concise.