The economy is booming, right?

Catching up on the news after a month wasted not buying a house, I was fascinated to find the  MSM touting the great Obama economic recovery. The DOJ industrial average is over a record busting 1700, something like 280,000 jobs were added in June, and unemployment is almost down to 6%. Wow! What’s not to like?

Well, this humble observer of the asylum we all have to live has to ask: if the economy is doing so well, why do we have record numbers of people on welfare, why do we have millions less Americans working today than were working in 2007, why can’t recent college graduates find jobs, and why did the GDP fall 2.9% into negative territory in the first quarter of 2014? Something isn’t adding up. Let’s take a closer look.

Jason Furman at WaPo says the 2888,000 jobs added in June concludes the best six months since the late 1990’s. But, Zero Hedge took a closer look and tells us the Bureau of Labor Statistics reported that part-time jobs increased 799K in June while we lost 5333K full-time jobs. Our economy lost a half a million full-time jobs and all the media wants to talk about is the gain in part-time jobs!

I’m not going to waste much time talking about the so-called unemployment number. We all know that the BLS does not count those that have given up looking for work and anyone working one hour per week is counted as employed.

But, what  about the 1700+ Dow Jones? That number can’t be fudged. I suggest you read this New York Post article. Wall Street in general and the Wall Street bankers in particular have been the only beneficiaries Federal Reserves Quantitative Easing policies, especially the Zero Interest Rate Policy (ZIRP). The big corporations have used the cheap money to buy back their stocks to make their earnings per share to look better. They’ve held wages down and outsourced everything they could. But, the Dow did not reach its new record because the corporations are selling record amounts of their goods and services. S&P 500 sales, according to the linked article, were $2.65 billion in the first quarter of 2008 when the Great Recession was in full bloom and now after five years of the Obama recovery the S&P 500 sales for the first  quarter of 2014 were only $2. 49 billion. There is nothing rational about today’s stock market!

The game was rigged from the moment the government decided to bail out the Wall Street bankers in 2008 and put the screws to America’s middle class savers and the retired. 99% of Americans would have been better off if, in 2008, the Fed and all the Boys and Girls, in Washington had just sat on their hands and did nothing. But, a small handful of people have benefited enormously from the Fed’s policies. The 1%of the One-Percenters still have Mr. Bernanke on their Christmas card list and now Ms. Yellen, as well.

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God bless America!

Well, that’s what I’m  thinking. What are your thoughts?

 

 

 

 

 

 

 

 

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12 thoughts on “The economy is booming, right?

  1. Orwell’s Ministry of Truth rules the day — except that those of us here not in the ivory towers should know better than to believe the government propaganda. I know what I see — even here in the prosperous D.C. area. And, on a personal level, the family who leases a house from me are now three months behind in the rent. Damn. It’s hard to evict them: they are close relatives.

  2. There are serious systemic structural problems in the economy today. To even imply the “Bail Out” did anything to either cause or contribute to these problems would be like blaming just the part of the edge of the Ice Berg that hit the Titanic for it’s sinking, but not the Ice Berg itself.

    Silliness.

    We haven’t invested in developing this country for decades and the country is sinking because of it. And that’s an Ice Berg that is easily navigated around. But cheap, short-sighted, angry, anti-government, anti-responsible, spoiled rotten conservatives are the drunk skippers on the wheel tacking right into the next boom and bust. They hate all their fellow Americans, so they just don’t care about them. Why would they want to do anything for their country?

    JMJ

    1. Jersey, you have got to send me some of whatever you smoking. Your man had both housssses of congress for two years and he had $800 billion in stimulus to spend as he saw fit (which remained as part of the baseline budget ever since) and you want to whime about those rotten conservatives? Really? Come on, Jersey, I know you can do better than that.

      1. The President was able to accomplish quite a bit in those first two years, but only a moron would think “he had $800 billion in stimulus to spend as he saw fit.” That’s not even revisionist history. It’s just retarded.

        JMJ

  3. Yes, the bailout was designed to help Wall Street in order to make it look as though the economy was improving. I remember when Bush was president and the stock market went over 10,000 for the first time. The Dems were saying this was just a number and it did not matter because all it showed was that the rich were getting richer while the rest of us were struggling. Suddenly now they are using the stock market as “proof” the economy is improving, funny how that works!

  4. You beat me to the punch…
    I’m tardy, but will upload my interpretation of last week’s jobs report later today.

    You touched on the great goblin living in the closet… Fed QE policy and who is benefiting from it. What I worry about most is where all those trillions of giveaway dollars are leading us.

    It is still artificially keeping Treasury bond yields at historic record lows while selling more bonds is used to pay interest on a debt that those sales themselves are making grow bigger! Banks save their real cash while using QE as a guaranteed hedge against losses in a future financial fall.

    Some day, robbing Peter to pay Paul will fail. Even heaven won’t help us when that happens.

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