A RECOVERY TOO FAR

04/23/2009

A RECOVERY TOO FAR


I am not a pessimist, I have said this much again and again.

But when I hear the news media and the politicians talking about a recovery soon I wonder what they are smoking, or better why and how these people are getting away with these lies.

I know I have myself joked about a recovery based on self help book, may be Dr. Phil could offer one. May be the people at the COSMO have some ideas, they keep promising a wonderful sex life for any girl that will be stupid enough to buy their magazine, may be they will suggest someone that has a bigger package then Obama's (that phrase always made me cringe back in the day when everyone was talking about
Obama's package).

No doubt Obama has the biggest package, bigger than any one ever had before, almost twenty times as big as Bush did, (stay focused folks, we are only talking about the stimulus here).

So we are trying, right, our economy is based on credit they say and everyone is trying to "ease" the credit markets, there i the TARP money, there are banks with money to loan to the nice people, with good credit. But there is just not enough nice people with good credit left any more.

Nice people with good credit are losing there jobs, and that is true almost the world over . So nice people with good credit are scared to borrow more even if they could.

With all due respect, the size of Mr Obama's packages, and wishful thinking not withstanding, the downward spiral can not be stopped, decline may be reduced, the speed of decline maybe slowed, but it is the new fact of life in the modern era.

The resultant lower standards of living, is the new fact of life, services economy will stop functioning as the industrial production slows, products, however, will cost more as per unit production costs go up, reducing the demand even further.

Of course we could print more money than we are already doing and spread it around, then we could all be like the Afghans and Saudis and sell our daughters to support our bad habits.




LIFE IS A GAME OF CONNECT THE DOTS, IF YOU DON'T CONNECT ALL THE DOTS OR DON'T CONNECT THEM IN THE RIGHT ORDER YOU NEVER GET THE PICTURE