XML FeedsEnd of recession in 2009 NABE economists say, really?
By P Alfonso on May 27, 2009 | In 1.5 The Economy | Send feedback »
Reporting like this is covering the financial news today. It can be found in CNN and Fox News. Wishful thinking I would say. Perhaps we should spell it “wish fools” thinking. Forty five economists from the National Association for Business Economics are predicting that the recession will end in 2009.
One may wonder where these guys got their degrees in economics or whether they have a vested interest in misleading the people. Unfortunately, economists who are predicting common sense are vastly ignored by many. See what the Fed is not telling us and visit this link with Peter Schiff who has consistently predicted correctly, and is forecasting a somber outlook on the economy. Ironically, the vast majority of the media is feeding the people what they want to hear and what the government wants them to believe.
Follow up:
There is a comic connotation when you hear politicians speaking of spending trillions and hundreds of billions of dollars that we don’t have and we cannot get. They keep on talking as if life will go on as usual and the hard choices ahead are not real. For instance, the biggest state in the union, the State of California is bankrupt and has become a beggar. Geithner has said that legally they cannot use the TARP bailout from the Treasury. When California defaults and it will, it will take with them the billions in bonds that they are holding from pension plans. Who is going to tell the people that their retirement funds have vanished? Who in their right mind could believe that the U.S. can make good on all of the obligations that they claim are guaranteed by the Federal Government including the FDIC who recently needed a bailout. If they do, it will not be with real money but with a currency so devalued by inflation that would only be worth a fraction of its original value.
Another example is General Motors who will likely be filing for bankruptcy in a few days. If our government and the UAW have their way, they will virtually own GM. The secure Bond holders who put real money into GM will be left with practically nothing. The UAW will own a big share of the company to secure the pensions but if at the end GM totally fails, they will have nothing left. The Federal Government would own as much as 70% of GM, but since they are also broke, they will be buying it with Monopoly money. The Secured Bond holders see that as cheating. Real money versus fake money, is that cheating or even legal? Our economy is in terrible shape today and it will get worse mainly because our government has long lost its integrity.
How can anyone conceive, that a government that must to indefinitely borrow fifty cents on every dollar that it spends, will financially survive? How can this government sustain its spending spree if it relies on borrowing from lenders that are quickly evaporating? How can a government survive that has stopped being honest to its people? How can a government survive that is no longer trusted by its people? The only end to the Recession that we will see this year is when it is officially declared a Depression. Listen to the real common sense economists and not to these guys that got their degrees to run a banana republic and have become economic advisors.
At the end we will not only have to work our way out to the financial hole but will also have to clean out the banana republic image that will have created.
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