Thursday, November 8, 2012

Article of the day


CNBC article, here, titles: "Why US Economy May Be Headed for Another Recession"

The usual suspects including the eurozone crisis, Superstorm Sandy (which flies in the face of Krugman-esque natural-disasters-are-economic-stimulants theory), the imminent fiscal cliff and the lack of "escape velocity" from the previous recession are all present.

Here's the paragraph, however, that caught our eye:

Wall Street has recoiled since President Barack Obama won a second term following the hotly contested election in which Republican Mitt Romney painted the incumbent as anti-business. Stocks plunged more than 2 percent Wednesday and were off again Thursday afternoon, though not as steeply.

Good grief... Wall Street didn't recoil because Mitt Romney painted Obama as anti-business. Wall Street took a dive because Obama spent the past four years proving he was anti-business and now he just got 4 more years to keep proving it. Wall Street doesn't need Mitt Romney to tell them which way does the wind blow.

We realize that this article is a straight news piece and not an Op-Ed but by playing connect the dots in such a misleading and false manner, they are, in effect, editorializing.

Capital will continue to sit on the sidelines continuing to forestall any robust economic recovery because it is freaked out by the unknown as whatever the administration does not get pushed through Congress, they will simply make happen via executive order or via regulation.

That, friends, is not a recipe for a rebounding economy as the man's instincts and ideology have led him to tie up businesses and the private sector as a whole in more regulations and more red tape.

We hate to be gloomy Guses, but there are plenty of indicators out there that we will be facing our own loss decade.



SarahB said...

I don't think an acknowleged recession will happen that fast...too many willing to manipulate at all costs to drag this out the houseing market. But by about 2014 its gonna set in hard. His own healthcare program will make it so.

Doo Doo Econ said...

Who in their right mind would start a business now?

K T Cat said...

Whoa there, pardner! There's a recession coming? Who knew? Too bad they didn't find out until today.

Anonymous said...

A friend likened this election to the Israeli children clamoring for a king. The Lord saith, “You may have a king but there will be consequences.” Dad

B-Daddy said...

I wish it was only as bad as what happened to the Israelites. In the first book of Samuel, chapter 8, God promised.

11 He said, “This is what the king who will reign over you will claim as his rights: He will take your sons and make them serve with his chariots and horses, and they will run in front of his chariots. 12 Some he will assign to be commanders of thousands and commanders of fifties, and others to plow his ground and reap his harvest, and still others to make weapons of war and equipment for his chariots. 13 He will take your daughters to be perfumers and cooks and bakers. 14 He will take the best of your fields and vineyards and olive groves and give them to his attendants. 15 He will take a tenth of your grain and of your vintage and give it to his officials and attendants. 16 Your male and female servants and the best of your cattle and donkeys he will take for his own use. 17 He will take a tenth of your flocks, and you yourselves will become his slaves. 18 When that day comes, you will cry out for relief from the king you have chosen, but the LORD will not answer you in that day.”

So endeth the lesson for the day. Hey, its Sunday.