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Re: It's official! Obama's recovery failed
Posted by **No Flies On Frank** on May 2, 2013 at 6:17:44 PM:
In Reply to: Re: It's official! Obama's recovery failed posted by **Hippie J** on May 2, 2013 at 6:14:57 PM:
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*****When President Barack Obama came into office on a whirlwind of popular support in 2009, hopes were high his proactive, government-centric approach to the economy would stem the housing crisis, save the banks and reverse the jobs implosion that resulted in 11.3 million full-time positions being lost between 2007 and 2009.
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*****His left-leaning economic advisors touted the lessons of the Great Depression and were eager to apply those lessons after eight years of the Bush administration's more laissez-faire approach. They bailed out Detroit. They used Treasury funds to encourage mortgage modifications. They launched a $762 billion stimulus package. They used the Federal Deposit Insurance Corp. to backstop bank assets.
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*****And they encouraged the Federal Reserve to open the spigots of cheap money on an unprecedented scale, subsidizing the government's $1 trillion-plus deficits, and buying auto loans, collateralized consumer loans and mortgages.
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*****Yes, the economy started growing again. But the results have been disappointing. And now, there are signs this tepid recovery is faltering as both economic growth and corporate profitability turn lower.
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*****We've seen the weakest recovery of the modern area, with annual growth rate of gross domestic product peaking at a meager 2.8% in 2010 before slowing (compared with a Bush-era peak of 4.1%, and a peak of 5.4% under President Bill Clinton). The economy remains far below its full potential. Industrial production remains below pre-recession levels. And we're still facing a deficit of nearly 6 million full-time jobs -- and nearly 13 million if we account for population growth as well as jobs lost during the recession.
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*****More here
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*****We've gone so far in the hole now we don't know what to do?
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*****Come 2016 and kicking all the Washington DC politicians asses into the street will be a start..
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****How do you know it wouldn't have been worse if they hadn't done any of these things?
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***Any way 'They' would have approached it would not be of any benefit to 'The People' - we only get the short stick, if any at all; these plans have been laid for a century+
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***hj
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**I do think it's strange that private banks are the initial recipients of the monetary stimulus.
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**"How convenient.", I always think as I teach my students macroeconomics. It must be nice to hold securities when the Fed begins its open market operations. Or decides to acquire owners' equity in failing banks to shield the owners and management from previous risky and/or stupid decisions.
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**There actually might be less corruption in the system if the Fed just threw bags of money out of a plane every time it expanded the money supply rather than doing what it does now.
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**Economics is a damn funny field with no easy answers at the macro level. The politics get mushed up into the policies so easily I think.
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*if I may ask, what have you heard, if anything, about the expiration of the Fed's corporate charter this year?
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*hj
Nothing really. Macro isn't my field and I wouldn't know much more than what I read on the internet unless I talk with the macro professors in the department.Followup Messages:
- Re: It's official! Obama's recovery failed - **Hippie J** - May 2, 2013 at 6:21:26 PM
- Re: It's official! Obama's recovery failed - **No Flies On Frank** - May 2, 2013 at 9:43:58 PM
- Re: It's official! Obama's recovery failed - **Hippie J** - May 2, 2013 at 9:56:23 PM
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Last updated on May 2, 2013