No False Moves Or the Economy Gets It, See?

Hang onto your protective head gear. It could be recession time again. Financial Times:

"Unless we are missing something the US is one false move away from a recession," says Jim Reid, strategist at Deutsche Bank, who has warned the US could be approaching a "1937 moment" - when authorities removed post-Depression stimuli from still-fragile markets and triggered another recession. This risk, he says, has in fact only been magnified in the markets' eyes by agreement on raising the US debt ceiling.

  • mattpd

    the president likes to say that he has to do more than one thing at once. Unfortunately it seems like congress cannot. Nor can the political press cover more thing than once.

    You do not have to be a “strategist” at Deutsche bank to know that while everything was hyperfocused on the long drawn out debt deal, no attention was paid to helping to create conditions that aid economic recovery. Yeah sure, stopping the car before going off the cliff counts some, but that was preventing a worse disaster, not getting back into the plus column.

    August is a wash, what with vacations. Given the obstructionist nature of the republicans nothing is going to get done anyway. But I’d sure like to have them sit there and do nothing, all the while having them pissed off for being there.

    Congress feel the pain too. Like if we lose x number of jobs per year, they need to lose x percent of staff. If the old adage of a recession is when your friend loses a job, a depression is when you lose your job… well, I think congress is experiencing boom times, because i don’t believe they’ve cut any staff.

  • MrDHalen

    I personally don’t see our economy recovering until we start recovering the billions being horded by multi-national corporations. We also need to end both wars and let the Bush tax cuts expire. The only other way I see out, is a new technology that could spark mass employment and investment.

    Another stimulus would be great, but would only be a short term fix like the last one. Our government is in need of more revenue because unlike the corporations that are currently sitting on it, the government dumps tax money right back into our economy. (Except for when it uses it for needless war!)

    • Scopedog

      “Another stimulus would be great, but would only be a short term fix like the last one. ”

      Well…that would be nice, but getting this through a TP/Repub controlled House and a Senate with a filibuster-happy Republican minority is going to be more difficult than penning a sequel to TITANIC.

      In other words–it won’t happen, due to the factors I mentioned.

  • mrbrink

    The Republican party are job killers. Since the Republican party took over the House of Representatives we’ve seen diminishing GDP, acts and threats of credit downgrade for the first time in our history, an open assault on the American worker from state to federal, Dow Jones on the slide, slowed job growth, no jobs bills, record corporate profits, staring down the barrel of a double dip recession two years after they passed off executive power in the worst economic conditions since the Great Depression.

    Who signed on for this crap again?! Who let this happen?

    Yeah, John Boehner bragged that he got 98% of what he demanded in the debt deal.

    No Balanced Budget Amendment, but a weaker economy and a war on the American worker?

    “So be it.”

    This is what the GOP calls a focus on “job creating?”

    Nothing of fact qualifies their power. They break and call it broken.

    Job killers. The GOP are job killers and they’re bad for business and economic equality.

    The numbers don’t lie.

    8 million jobs lost under Bush. He inherited a budget surplus with CBO projections of a $5.6 trillion surplus by this year. He handed off a $1.3 trillion deficit and projections of an $8 trillion deficit over ten years

    “Fix it, Negro boy!”

    The Republican party are job killers. Say it loud.

  • Ned F

    Bwaa ha ha, the plan to get the Kenyan Socialist out of the White House is nearly complete!

    Stocks Sink As Market Fears Mount

    Investors are spooked by the prospect of even modest bederal budget cuts in an anemic recovery

    Two years after the last recession ended, Wall Street is showing rising fear that the U.S. economy could be headed for a new downturn….Despite some relief that Washington could forge an eleventh-hour compromise on the debt ceiling, analysts said the prospect of even modest federal budget cuts in an anemic economy was spooking markets.

  • And yet my personal economy will be looking up once I start selling my “told ya so” t-shirts.

  • incredulous72

    Those that don’t learn from the past are doomed to repeat it.