Recession is the new normal

[aristotle]

I don't understand those who speak of the US facing a double-dip recession. We never really came out of the awful recession that began in 2008 and continues to this day. Technically, a few economic indicators bumped up a little, here and there. GDP goes up and down. Government is a growth industry, at least on paper. Not much happening in the private sector. Jobs are scarce. Banks are reluctant to lend. New car sales are abysmal. Millions of homes lost to foreclosure sit on the market unsold. A quiet sense of despair blankets much of the American economy.

I submit American business has become so heavily taxed and over-regulated that real economic recovery is not possible unless drastic reversals are made. If we cannot make a swift return to go-go capitalism, then recession is our long term status quo.

For all the trillions of dollars spent in Federal stimulus schemes, the average American is in worse shape than before the government spending madness began. Either we find a way to beat back Big Government or it beats us.

 

[Tennesseahawk]

The Japanese have been in a 20 year recession. Of course they have the highest corporate taxes in the world, with us right behind. Neither have learned much in our respective recessions. Canada and Australia have. Canada is surviving our recession, and Australia is booming.

 

[greg334]

Things can get worse. It isn't that banks are not lending, they are. It isn't that the stock market is not booming, it is.

Many equate the stock market and commodities market to the health of the economy, while others look at jobs. It isn't really either.

What the problem is, is ambiguity with the leadership of this country - from Congress to the president to the regulators. We once had a direction, now we are not sure what's happening. We once had a president (take your pick) who demanded congress to act and push them to act whether good or bad but now we don't have a president who seems to care much about anything but basketball.

As it was talked about the other day on a couple news channels, the financial world is now telling the fed and congress what the problems are in no uncertain terms. The Frank-dodd finance reform act was one thing that was singled out, it was explained a couple times that the law was written in such a way that left the door open for regulators to make the rules as they went on leaving business to stop and wait.

 

[Black Sheep]

Corp. executives and small business owners aren't that much different from individuals in some instances. Nobody wants to invest money into anything when there is so much uncertainty and incompetence in economic policy makers. Businesses keep their cash in the freezer instead of putting it into capital improvements, while the most liberal president in the country's history presses on with his socialist agenda. Individuals, especially those who are unemployed save what money they have and don't buy houses, cars and other durable goods whose manufacture feeds economic recovery. Why hire employees to make cars and washing machines that no one can afford to buy? The only way out of this mess is to defeat Obama next year - the solution is simple. Americans are going to have to vote for his opponent no matter who it is - if they have to hold their nose doing it, so be it.

 

[purgoose10]

Corp. executives and small business owners aren't that much different from individuals in some instances. Nobody wants to invest money into anything when there is so much uncertainty and incompetence in economic policy makers. Businesses keep their cash in the freezer instead of putting it into capital improvements, while the most liberal president in the country's history presses on with his socialist agenda. Individuals, especially those who are unemployed save what money they have and don't buy houses, cars and other durable goods whose manufacture feeds economic recovery. Why hire employees to make cars and washing machines that no one can afford to buy? The only way out of this mess is to defeat Obama next year - the solution is simple. Americans are going to have to vote for his opponent no matter who it is - if they have to hold their nose doing it, so be it.

They said yesterday (on CNN of all places) that 62% of Americans don't like the way Obama is handling things.
And that from a network that just loves the guy.
Hopefully he will be thrown out or at least trip and fall down all those stairs from Air Force one and knock that stupid grin off his face.

 

[Ragman]

Hopefully he will be thrown out or at least trip and fall down all those stairs from Air Force one and knock that stupid grin off his face.

Kind of like-----

 

[greg334]

Businesses keep their cash in the freezer instead of putting it into capital improvements ...

I would think this would hold true if a lot of these companies were not making capital investments in overseas markets but they are.

Ford is making one HUGE investment into the Russian market, they will be producing products for that market like the Transit Van of all things.

GM with help of the US government is moving ahead with their investment to expand more into the Chinese market by adding factory space.

GE, Pfizer, and a number of others are doing the same. It isn't that the money isn't there, it is the ambiguity of what is going to happen here that matters.

One issue that was talked about this morning was health care, a number of companies are holding on to their money to see if the health care is over turned or the public option becomes reality. IF the public option becomes reality, then they may drop their own insurance benefits and save millions.

 

[chefdennis]

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