Posted on 06/26/2012 6:22:28 AM PDT by SeekAndFind
As President Obama and Republican challenger Mitt Romney get set for what’s likely to be among the most negative presidential campaigns in recent history, each man should ask himself if he really wants to win — because he’ll almost certainly face the grim prospect of another recession.
Sure, it’s always difficult predicting the economic future; that just a couple months ago we all thought (including me on these pages) that we were heading for a sustained recovery, as job growth seemed to have picked up steam and most financial gurus predicted that it was just a matter of time before the strong data translated into meaningful wages and a more vibrant economy.
But now we see just the opposite, at least according to the latest data, and the prediction a slew of market strategists and investors made to me even before last week’s round of bank “downgrades” by the raters at Moody’s Investors Service.
Our low growth and jobs woes can be traced to a number of factors, of course — from Europe’s mess and China’s slowdown to the ongoing assault of higher taxes and increased regulations at the heart of Obama’s economic agenda.
Bottom line: We only limped out of recession, and the limp’s been getting worse the last few months. Now Moody’s actions might just be the final straw that pushes a barely growing economy into negative territory.
First, a little background: A bond rating is a measure of a company’s ability to repay its debt, given what’s known about the company, the economy and the business environment. Moody’s assigns letter grades as part of this assessment, with “AAA” the highest, and “C” for firms that look ready to default on their debt. Last week’s actions against a slew of big banks, including some of the nation’s largest
(Excerpt) Read more at nypost.com ...
each man should ask himself if he really wants to win — because he’ll almost certainly face the grim prospect of another recession.
Oh the world as we know it is going to change in a very big way between 2014-2017. I do not care who the President is. But we do need a guy who will see that the problem is 40-50 years in the making and not just blame it on the last guy.
It’s common for Presidents to take the hard economic knocks early in their term, in the hope things work out better towards the next election.
There’s little choice in the matter now, but Romney may try things which will be beneficial after the short-term pain, whereas O will certainly respond as he always does by pushing for bigger government. Also, Romney might care about a second term; Obama will pull out all of the stops without re-election worries, and he will be more concerned with restructuring society than the economy.
I am assuming that the US Federal Government will suffer the same fate as the present Greek Government.
I am assuming that we have less than 10 years before China stops buying our US Bonds, which are currently used to pay for our Keynesian Welfare system.
As the US Federal Government continues to Nationalize Private Businesses, the Keynesian Fecal Federal Finger of Debt will rapidly increase the politicians desire to cover their financial debts by increasing the Nationalization of Private Businesses.
During this time US Corporate flight to Business-friendly Nations will be swift.
Hence, the expense of a standing Army with very expensive Drones to control the unemployed population, will diminish the ability of these “Public Servant” Federal Politicians to interfere with our State Constitutional Conventions to choose what multi-State Regions will make up the former USA.
Like it or not, the US Federal Government Debt Bubble will burst within the next 10 years as quickly as the Federal Housing Debt Bubble burst in September, 2008.
In 2008 and 2009, only 30 % of the wealth in the World was destroyed.
“WHEN YOUR OUTGO EXCEEDS YOUR INCOME, YOUR UPKEEP WILL BE YOUR DOWNFALL.” (PAUL HARVEY)
This article is 100% wrong. The economy is going to take off the second that the productive members of this society realize Obama has lost the election. Everyone is hoarding capital and suspending any decisions (like hiring) until this happens.
It’s a cinch Obama/the Democrats will do everything they can to sabotage the economy during the lame duck session, assuming they lose in November.
(Regardless of who wins, the next President faces a recession)
Yeah, it’s what I said in 2008. I was a doom and gloomer then and it’s worse than I expected. I am now an apocalyptic doom and gloomer. I have almost no doubt whatsoever that we are approaching WWIII.
A lot of the recession could be mitigated by the government removing uncertainty. For a good number of businesses, even sucky regulations and taxes that are a known quantity are better than not knowing what’s coming down the pike.
You can live with taxes that are unexpectedly low, or regulations that are unexpectedly sensible, but there’s no way to plan for unexpectedly high taxes or unexpectedly stupid regulations - and those can put you out of business faster than Michelle can devour a lobster. You don’t hire people when the government can, and probably will, radically alter your business future at a whim.
Long term, we, as a nation, have significant structural problems and those need to be addressed. But getting us into recovery mode, improving the job market, and even possibly helping out the housing market could be easily accomplished by stability in government.
But if you wanted a boom, then all that needs to be done is demonstrate that the trend will be towards lower taxes and sensible regulation (by actually cutting taxes and slashing regulation) and businesses will be fighting each other to see who can expand faster.
—Oh the world as we know it is going to change in a very big way between 2014-2017.—
It acutally already has, since 2006. And I put the “big changes” at starting in 2012.
Yes, capital most likely will be put to use and if Romney puts a lid on the EPA and we drill baby drill we’ll see a huge boom. Concurrently we need to reduce spending to see a regeneration of the prosperous country too many have taken for granted.
Also if we have a tea party dominated congress we ought to be able to save ourselves IMHO.
Double dip? double dip!?
We NEVER recovered from the FIRST recession!!!
Unemployment has been over 8% since 2008! FOUR YEARS NOW! the ONLY reason the economy hasn’t collapsed is government deficit spending to the tune of about $1,000 Billion every year, financed by money printing from the fed. This can’t go on forever and it won’t.
We are now entering year five of what will be known as the 2nd Great Depression, 2008-?
Sorry, but I feel better now.
There will be a short false recovery before the debt crisis hits full force.
Stop Obamacare, slash Obama’s massive new regulations, strictly enforce illegal immigration laws, build pipelines, open up oil exploration and production, gut the EPA, gut the funding of the arts, slash the spending on parasites, balance the budget, kill funding of worthless green industries, stop bailouts and let bankruptcy laws work, cut taxes, fire worthless czars and other political slugs, and just generally reverse EVERYTHING else Obama has done........and the economy will pull out of the Obama Depression just fine.
I agree. Also, if Romney wins and the hiring and expansion of small businesses begins immediately, bozo will claim he had a hand in it in his last 2+ months.
They are all propping for the election. I believe that 2013-2017 is going to make 2007-2011 seem like a picnic
They are all propping for the election. I believe that 2013-2017 is going to make 2007-2011 seem like a picnic
—I know that you are right and this started in 2007. I hope that we have seen the worst of it. However, the way I look at things and see things would lead me to believe that they are still propping most of this up.—
Most of it? All of it. It is getting worse and will continue to grow exponentially until it is impossible to hide from all but the most gullible. As long as we continue to spend more than we bring in, we are creating the hyperbolic nightmare.
Eventually someone (country) will crack and that is when we reach critical mass. And shortly after that, WWIII begins.
WW III? That is interesting. I see a lot of civil wars breaking out. The disparity in weaponry almost makes large scale world war a joke. It will seem like the whole world is at war.
WW III? That is interesting. I see a lot of civil wars breaking out. The disparity in weaponry almost makes large scale world war a joke. It will seem like the whole world is at war.
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