Post by The Great Aztec Joe on Aug 4, 2010 6:57:38 GMT -8
The Economic COLLAPSE Will Be Like A Slow Motion Falling House of Cards.
The Commerce Department recently confirmed what I have been telling you for years. The economy is in a continually deteriorating state. Everybody can now see that there is no growth momentum. Be prepared for a protracted Bear Market.
Last Friday the Commerce Department reported that our GDP grew at an Dismal Annual rate of 2.4 percent in the second quarter. Remember that is a projected Annual Rate. That has fallen from 3.7 percent in the first quarter and 5 percent in the fourth quarter of 2009. Remember this is AFTER Obama injected a trillion dollars into the economy. It is obviously having a little effect for the good, but the reality is that we are collapsing in spite of all that government spending.
Why?
Take a look at state and local government spending. As these stressed-out governments try to deal with their own river of red ink, spending is decreasing at a rapid clip. The Federal Government increase in spending is being offset by State and local Government decreases in spending because of decreasing tax revenue.
We are now seeing inventory buildup. Manufacturing looked good while we were restocking shelves and warehouses, but now the products are piling up. So unless consumers go on a wild spending spree, businesses won't be restocking their shelves in the foreseeable future.
Foreclosures are still continuing and in some parts of the country are increasing. Now it isn't the bamboozled minorities who can't pay their mortgages, it is the people who are out of work who can not pay. They have used up their savings and simply can not make another payment.
How can this be? We should be adding 200,000 a month to the Labor Force if our economy was solvent. Unfortunately, it isn't, and we have been dropping Millions of people off of the Labor Force. These millions are now in various stages of default on their mortgages. And now Geitner has been saying that Unemployment may even go up in the near future. Well, at least he is trying to be honest.
Can you see those slow motion cards falling one by one by one
Now for an ugly reality. GDP figures for the past three years were revised — downward in seven of the 12 quarters — because consumer spending grew slower and home building fell harder than had been estimated. This means, without doubt, that the recession is far worse than government officials are telling us. Those cards keep on falling.
The Commerce Department recently confirmed what I have been telling you for years. The economy is in a continually deteriorating state. Everybody can now see that there is no growth momentum. Be prepared for a protracted Bear Market.
Last Friday the Commerce Department reported that our GDP grew at an Dismal Annual rate of 2.4 percent in the second quarter. Remember that is a projected Annual Rate. That has fallen from 3.7 percent in the first quarter and 5 percent in the fourth quarter of 2009. Remember this is AFTER Obama injected a trillion dollars into the economy. It is obviously having a little effect for the good, but the reality is that we are collapsing in spite of all that government spending.
Why?
Take a look at state and local government spending. As these stressed-out governments try to deal with their own river of red ink, spending is decreasing at a rapid clip. The Federal Government increase in spending is being offset by State and local Government decreases in spending because of decreasing tax revenue.
We are now seeing inventory buildup. Manufacturing looked good while we were restocking shelves and warehouses, but now the products are piling up. So unless consumers go on a wild spending spree, businesses won't be restocking their shelves in the foreseeable future.
Foreclosures are still continuing and in some parts of the country are increasing. Now it isn't the bamboozled minorities who can't pay their mortgages, it is the people who are out of work who can not pay. They have used up their savings and simply can not make another payment.
How can this be? We should be adding 200,000 a month to the Labor Force if our economy was solvent. Unfortunately, it isn't, and we have been dropping Millions of people off of the Labor Force. These millions are now in various stages of default on their mortgages. And now Geitner has been saying that Unemployment may even go up in the near future. Well, at least he is trying to be honest.
Can you see those slow motion cards falling one by one by one
Now for an ugly reality. GDP figures for the past three years were revised — downward in seven of the 12 quarters — because consumer spending grew slower and home building fell harder than had been estimated. This means, without doubt, that the recession is far worse than government officials are telling us. Those cards keep on falling.