I just came across this post and I just had to laugh. In the post they state that economists now feel that the U.S.A. my be entering another recession. Entering? We’ve been in a recession for the past 3 years. The focus of the article was the sharp decline in the DOW Jones Industrial Average upon the New York Stock Exchange opening today. Read it here – http://yhoo.it/oyKPHB
So let me see if I’ve got this right. As long as the stock market is going up we’re not in a recession; but when the stock market is tanking, then we’re in one. Try to explain that to the 9.2% of Americans that are unemployed. Try to explain that to the people of Greece, Portugal, Ireland, Spain and Italy that are grappling with the budget cuts, austerity measures and crushing debt load. Try to explain that to states like California and Minnesota that are struggling with huge budget deficits.
I think the U.S. government needs to re-calibrate. The economy stinks and it has been stinking since 2008.
And the Federal Reserve better wake up too. Interest rates at 0% – ridiculous. Quantitative easing – nonsense. The only people that benefited from quantitative easing were investment banks, hedge funds, and stock market speculators. Not one job has been created from quantitative easing. The only thing that these programs did was to give the appearance that the economy was improving. All these programs did was to delay the inevitable. After a financial fiasco as big as the one created in 2008, nothing can fill the hole in the U.S. economy until we experience a long and painful re-building period.
Think about it – the people that were working in the financial industries that created this crises – now they work for the government. Sounds like the foxes are guarding the hen house to me. What do you think?