Special Report
Apocalypse When?
Obamanomics approaches the brink of disaster.
(Page 2 of 2)
• Gold reached its highest price in six months Tuesday, and silver hit a 13-month high. Oil prices also spiked more than 4 percent, and the dollar hit a new low for the year against the euro.
• A Federal Reserve report Tuesday showed consumers cutting back on credit, widely interpreted as a sign of weakening consumer demand.
Such gloomy evidence hardly testifies to the “transformative” power that Joe Biden attributed to the stimulus. But there can be no doubt the administration has succeeded in “changing the conversation.” With so many troubling omens, some analysts are now predicting a “W-shaped” recovery — a so-called “double-dip” recession with another significant downturn before the economy bottoms out and begins a genuine recovery.
Those who put little faith in Biden’s economic acumen are watching for the second dip of that “W,” perhaps as painful as last fall’s collapse that led Democrats to enact the $787 billion stimulus. However severe the financial damage of another downturn, one certain effect can be easily predicted — the final bankruptcy of Obama’s economic credibility.
About the Author
Robert Stacy McCain is co-author (with Lynn Vincent) of Donkey Cons: Sex, Crime, and Corruption in the Democratic Party (Nelson Current). He blogs at The Other McCain.
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Robert Rosencrans| 9.9.09 @ 7:57AM
The ultimate hangover of all government spending is inflation. Can't wait for that!
Pingback| 9.9.09 @ 8:23AM
Twitter Trackbacks for The American Spectator : Apocalypse When? [spectator.org] on links to this page. Here’s an excerpt:
Tim| 9.9.09 @ 8:55AM
If we can't trust Joe Biden...
Grzmlyk| 9.9.09 @ 9:55AM
You guys! SHUT UP!
Didn't Bob tell you all would be sunny and rosy again by the end of the year (for those keeping score, that's 113 days from today)?
Didn't Bob assure us that GDP ONLY goes up, up, up and effective tax rates never change?
DEBATE OVER. Move on, RS McCain and your merry band of right-wing ideologues. There's nothing to see here.
Gill O’Teen ✝✡| 9.9.09 @ 10:59AM
I have admitted numerous times that I don’t understand the stock market. Official unemployment hits 9.7% and is projected to exceed 10%, there were more than 200,000 new unemployment claims last week, let me emphasize: new unemployment claims, but because some obumacrat predicted more than that, and we know just how dead-on accurate their projections are, this news is taken as a good sign that Buy-den’s recovery is underway. The ancient Greek genius Zeno composed a riddle known today as “The Paradox of the Tortoise and Achilles,” which illustrates why the speedier Achilles cannot beat the slower tortoise in a race. Once it was explained to him the shell-shocked hero conceded the bet. Those interested can find the tale at [http://www.mathacademy.com/pr/prime/articles/zeno_tort/index.asp]. This same site has a different version of the same riddle, which I am blatantly ripping off here. After all, in the age of the golden calf, it’s perfectly acceptable to plagiarize another’s work. “Suppose I wish to cross the room. First, of course, I must cover half the distance. Then, I must cover half the remaining distance. Then, I must cover half the remaining distance. Then I must cover half the remaining distance . . . and so on forever. The consequence is that I can never get to the other side of the room.” Graphically, this is a simple equation written as f(x) = 0.5*x where x = the remaining distance. The tortoise postulated that x can never reach zero, so Achilles can not beat him in any race in which the tortoise is given a head start, I cannot walk to the opposite wall and My Better Half cannot bonk me on the head with a skillet. This is the obumarrhoid economic model. But the Chinese are much more clever than the Achilles of this tale. They are buying gold as a hedge against the obumassiah duller. The Duller Index is fast approaching 74. If it falls below that our economy will be all wee weed up for generations. obumacare plus cap and trade will destroy this country to the point of collapse. Welcome to hype and chains.
Gill O’Teen ✝✡
gill.Oteen07041776@gmail.com
Don’t Tread on Me!!
Pingback| 9.9.09 @ 11:49AM
The Fundamentals Look Really Bad, But Maybe They’re the Wrong Fundamentals links to this page. Here’s an excerpt:
texas male| 9.9.09 @ 12:50PM
{{nearly half of U.S. mortgage borrowers -- would be "underwater," owing more on their mortgages than their homes are worth.}}}
This fact is irrelavent to people who do not buy homes as an investment opportunity. If you are buying a home for residence and ownership....now is a GREAT time to buy.
Oldefarte| 9.9.09 @ 1:28PM
This country is in severe financial hades, and anyone saying otherwise [including this moronic VP] is simply stupid! There is nothing in the federal so-called/ill-named 'stimulus' that will stimulate; since it is nothing but WELFARE. The income-multiplyer effect of tax cuts is not there, as governmental welfare/benefits do not create layered jobs/increased income. It was/is a waste of taxpayer money, and future generations will be left with the bill for same. The only 'hope' for America is the upcoming 2010 and 2012 elections, from which American taxpayers can defeat/eliminate any/all Obama change agents/politicians and hopefully get America back on the road to financial recovery thereafter!!!!!!
Scott Martin| 9.9.09 @ 2:14PM
Sure this economy is "transformative". It is transforming the middle class into the welfare class, just as Obama and his liberal allies want.
Pete| 9.9.09 @ 2:29PM
but...but...this AP article says everything is fine.
http://finance.yahoo.com/news/.....8.html?x=0
Tim| 9.9.09 @ 3:22PM
"Kudos for bringing the public back to the Republican party. It's high time the public realized we conservatives aren't all Johnny-hatemongers and Charlie Bible-thumps, or even, God forbid, George Bushes."
-Sideshow Bob
Christopher Scott| 9.9.09 @ 4:52PM
What are some historic examples of a W shaped recession? My general impression of the economy from my extensive dealings with business people around the Mid-Atlantic Region is that the economy is bottoming out. I don't see a recovery, but I also don't see a further worsening of the economy.
The stock market is relatively bullish on the economy at the moment. The DJIA has rallied from approximately 6,500 in March to approximately 9,500 in September. Such a rally indicates that the market does not expect a W shaped recovery and it is usually viewed as a leading indicator for the economy. I would like to see the DJIA at its October 2007 of approximately 14,000 but that is not in the cards because the Democrats will be enacting higher taxes and increased regulation of our economy. I think we are likely to have a very slow recovery that will be quite similar to the slow recovery we experienced from 1991 through early 1996.
We would already in a strong recovery if the government had declared an individual income tax holiday for 2009. That would cost the government about the same amount of money as all of its stimulus plans. This is the true cost of adopting liberal policies in fighting a financial panic.
Gill O’Teen ✝✡| 9.9.09 @ 5:33PM
Christopher Scott, I don’t share your optimism. It’s going to get very bad indeed. I erred in my 10:59 AM post that the Duller Index was fast approaching 74. The number I meant to use is 77. Everyday after the market closes I check the closing prices of the Dow, Nasdaq and S&P. Then I check the closing prices of gold, silver, platinum and palladium. Then I check the exchange rates of the duller against other currencies. Unlike the stock market, the international currency and commodities markets never close, but I try to get their price between 4 & 5 PM EDT every day Wall Street is open. The best single indicator of how the duller is performing on the international exchange is the Duller Index. I use the value listed at Bloomberg [http://www.bloomberg.com/apps/quote?ticker=DXY:IND]. Today, when I checked the DI was 76.99, it’s lowest point since I began tracking. This is not good. obumah’s overspending and wanton printing of cash is causing an international loss of confidence in the American economy. It will of necessity lead to out of control inflation. And unemployment is on a constant upswing. It’s like the geniuses in charge confused the graphs. They look at the unemployment trend and think they see the duller index and vice versa. Actually, if tax-cheat timmy couldn’t even file a correct tax return using Turbo Tax, I doubt he even knows what the duller index is. Remember how wonderful life was during the Carter era. The U.N. recently called for a new international currency to replace the duller as the preferred medium of exchange. This idea is advocated by the Chinese who just happen to own a huge chunk of obumah’s debt. By the way, the four metals I track all closed at new high points today back to when I began tracking them on January 16. While it’s a good thing for those owning these commodities, it’s not a good sign for our economy because instead of investing in business, investors are putting their trust in hard assets.
Gill O’Teen ✝✡
gill.Oteen07041776@gmail.com
Don’t Tread on Me!!
Ken (Old Texican)| 9.9.09 @ 6:20PM
So what are you folks going to do? ...bitch about the lack of lifeboats while the darned ship sinks?
http:judgeroy.wordpress.com
OOPS Ken (Old Texican)| 9.9.09 @ 6:22PM
OOPS!
I screwed up the url. Try this:
http://judgeroy.wordpress.com
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Bob| 9.10.09 @ 1:13PM
As I've said before, you will not see job increases until the end of this year or beginning of next. We are now in what is known as the "jobless recovery" period. It always happens after a recession which is why jobs are a lagging indicator. Again, as I've said on several occasions, inflation will not rise significantly as it is a relative marker -- other countries, especially China, have put even more stimulus directly into their economies.
The electorate will not "feel" a recovery until job increases have occurred for 3-6 months (just in time for the 2010 elections).
How do I know these things? I look at charts and data, something few people here know how to do (especially people like RSM who doesn't know beans about economics).
As someone else mentioned, this recovery is likely to be "W" shaped, and not "V" shaped. Most recoveries are "W" shaped.
By the way, how many of you have been duped by Ken who takes your money and won't even tell you who he is? Sounds like a "little Madoff" to me.
jodetoad| 9.10.09 @ 1:15PM
With major disasters looming in both FHA and commercial real estate, even though I'm not an economics whiz, I am alarmed.
Pingback| 9.10.09 @ 4:15PM
» Financial News Update – 09/10/09 NoisyRoom.net: Where liberty dwells, there is my links to this page. Here’s an excerpt:
Everett Bennett, Jr. | 9.11.09 @ 9:44AM
Make no mistake, Democrats and Republicans both have had chances to 'fix' our debt problems. It is time for all members of Congress to go! Time for a revolution! It is time to run the Socialists, Communists, Marists out of this country as well!
Don| 9.11.09 @ 11:04AM
I just hope we can avoid Carter-like inflation. I doubt it at this point.
Short the dollar. Buy gold or Euros. The nimrods running this show will try to inflate our way out of this deficit.
It's like a Macy's sale. Double the prices this week and have a half off sale next week. Double the dollars in circulation and --- Voila! I just cut the deficit in half!
Richard Baker| 9.13.09 @ 7:39AM
The ultimate solution will be to run off these devotees of Marx and Engels's economics. The gulf between capitalism and M&E's philosophy is so vast that the destruction of one will have to occur. Sorta like matter and anti-matter, coexistence is ultimately impossible.