This blog post really needs to start with a giant graphic that shows just how our current recession stacks up against other post World War II recessions- in terms of percent job losses relative to peak employment prior to the start of the recession.
Ugly is pretty much all you can say (in front of small children) when you look at the news regarding our economy, and the jobs picture in particular. We’re now into this recession 21 months on, and while our leaders claim things are on the mend, the numbers don’t often lie.
Now, we still have a long way to go, but there’s little debate that the decisions we have made and the steps we have taken have helped stop our economic free fall. – President Obama (Sept. 15th, 2009)
During his September 15th speech to auto workers in Ohio, President Obama touted the cash for clunkers program as giving the auto-industry a much needed boost. No doubt they received a temporary one, but since the program expired, the auto companies have struggled mightily.
Meanwhile, banks are still having major problems too:
The number of U.S. lenders that can’t collect on at least 20 percent of their loans hit an 18-year high, signaling that more bank failures and losses could slow an economic recovery.
People like Marc Faber, Editor and Publisher of the Gloom, Boom & Doom Report feel as if nothing has been solved in the US in the last 6-9 months and that a big economic crisis still looms in the future.
The policy makers in the US, are still in-charge and if you look at what has happened in the US over the last 6-9 months, nothing has been solved. It has been postponed through fiscal and monetary measures, precisely the measures that brought about the crisis in the first place.
Of course, when people like Faber and Schiff are guests on financial TV shows and try to sew the seeds of truth, but they are still continually railed on and laughed at by the pundits and other guests. How many times can guys like Faber and Schiff be right, and Bernanke, Geithner, and the President be wrong before people wake up and see the truth?Published in