Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

We're Getting Evidence Of An Economic Breakout From A Very Important Source
BI ^ | 6-8-2014 | Joe Weisenthal

Posted on 06/08/2014 7:49:08 AM PDT by blam

Joe Weisenthal
June 8, 2014

The evidence is piling up that the economy is bursting out of the winter doldrums, as basically all of the May economic data has been hot.

The latest evidence comes from what may be the most important source of all: The credit markets. Specifically, credit expansion is accelerating.

On Friday we got fresh data on bank lending and consumer credit. The below chart shows the year-over-year change in loans and leases from commercial banks (red line) and revolving consumer credit, AKA credit card usage, in the blue line.

What's clear is that both are on an upswing. Both measures made steady gains out of the slump, and then stalled out again. A new credit expansion would be crucial, as it would allow the economy to really gather steam, feeding on itself, and break out of the post-crisis slump.

To those who throw up their hands and say "oh great, more debt and credit, that's just what we need," the response is: well, yeah, credit is the lifeblood of the economy and banks are its beating heart.

(snip)

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: economy; investing; jobs; recovery
From the mental powerhouse, Joe Weisenthal.....
1 posted on 06/08/2014 7:49:09 AM PDT by blam
[ Post Reply | Private Reply | View Replies]

To: blam

At least he’s finally admitting we have had no recovery since Obama took over.


2 posted on 06/08/2014 7:54:09 AM PDT by palmer (There's someone in my lead but it's not me)
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam
Always on the look-out for positive things to publish for Obama....

Here's The Difference In Government Employment Between Obama And Five Past Presidents


3 posted on 06/08/2014 7:54:38 AM PDT by blam
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam
Welcome to the sixth annual "RECOVERY IS RIGHT AROUND THE CORNER" party.

Don't be left out.

The party train is leaving the station so jump on board now.


4 posted on 06/08/2014 7:54:53 AM PDT by Iron Munro (Black skin has morphed into Teflon.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam

>SNORT!<

Yeah...riiiiiiiiiiiiiiiight!


5 posted on 06/08/2014 7:54:58 AM PDT by Jack Hydrazine (Pubbies = national collectivists; Dems = international collectivists; We need a second party!)
[ Post Reply | Private Reply | To 1 | View Replies]

Comment #6 Removed by Moderator

To: blam

The reality side is below:

“The U.S. economy shrinks, but it’s not a big deal.”

Did you see that headline at CNN Money? The publication reported that recently revised numbers from the federal government show the economy shrank during the first quarter, marking the first decline in economic growth in about 3 years. The story then quoted an economist who believes the downturn was brought about by the harsh winter weather and that Q2 should show a sharp uptick, while noting that job growth and sales of durable goods look strong.

The data points listed in the news article were all accurate. But they were also arranged in such a fashion, intentionally or not, that they were consistent with how the Obama Administration would want things presented. The article was also devoid of information that President Obama and his administration would prefer to ignore – things like the fact that CEO confidence has plummeted, and that other economists (besides the one that was quoted) believe that low interest rates are hurting the economy.

I’m sure there was no intended harm here. Acceptance of the Obama Administration’s agendas and assertions is so enmeshed in the culture of journalism that most practitioners, I suspect, have no idea how partisan and absurd their work often appears.

But when the data says that the economy just shrunk, millions of us middle class Americans who reside in “fly over country” tend to take that seriously (whether or not it was “caused” by the weather). For people like me, it’s a “parallel universes” experience when a journalist in New York City looks at facts like these and then tells us that it’s “not a big deal.”

The disconnect between the dominant forces of the American news media and the objective realities of our world have perhaps never been greater than during the era of President Obama. The unwillingness (or inability) among news reporters to either contextualize or to question the Administration’s actions has done our nation a great disservice.

http://www.freerepublic.com/focus/f-news/3165109/posts


7 posted on 06/08/2014 7:57:16 AM PDT by Grampa Dave ( Herr Obama will not divert resources from his war on Americans to help our Veterans!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam
*chuckling!* ..from hip-hop drug dealers.

8 posted on 06/08/2014 7:57:28 AM PDT by skinkinthegrass (The end move in politics is always to pick up a gun..0'Bathhouse/"Rustler" Reid? d8-)
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam

SHE’S GONNA BLOW!!!


9 posted on 06/08/2014 7:57:40 AM PDT by TADSLOS (The Event Horizon has come and gone. Buckle up and hang on.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam

I haven’t seen anything to justify this outlook.

If you take the stock market out of the equation, things look pretty bleak out here in the America where most people have to live.

In order to claim it has begun the “taper” the Fed is now using proxy buyers in Belgium to keep the money printing going but claim it is not.

Either my drinking water is laced with acid, or theirs is.


10 posted on 06/08/2014 7:58:51 AM PDT by ChildOfThe60s ((If you can remember the 60s.....you weren't really there)
[ Post Reply | Private Reply | To 1 | View Replies]

To: palmer

More inane happy talk from the perpetually blue sky manure spreading Business Insider and Joe Wiesenthal. Why anyone reads their crapola is beyond me.


11 posted on 06/08/2014 8:00:27 AM PDT by traderrob6
[ Post Reply | Private Reply | To 2 | View Replies]

To: expat_panama

What do you think?


12 posted on 06/08/2014 8:02:15 AM PDT by Lurkina.n.Learnin
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam

Just how many times have they said the economy is turning around?


13 posted on 06/08/2014 8:03:24 AM PDT by Jack Hydrazine (Pubbies = national collectivists; Dems = international collectivists; We need a second party!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam

Maybe people aren’t able to pay their bills so they’re maxing out their credit cards. Didn’t think of that Joe, did ya? Check back in 90 days and we’ll see how many delinquencies there are. Of course we know you won’t because you’re paid to be a spin doctor and the truth doesn’t interest you.


14 posted on 06/08/2014 8:06:39 AM PDT by jsanders2001
[ Post Reply | Private Reply | To 1 | View Replies]

To: Jack Hydrazine

It’s Recovery Summer v6.0


15 posted on 06/08/2014 8:07:49 AM PDT by Lurkina.n.Learnin
[ Post Reply | Private Reply | To 13 | View Replies]

To: blam

Economy bump for later....


16 posted on 06/08/2014 8:11:33 AM PDT by indthkr
[ Post Reply | Private Reply | To 1 | View Replies]

To: Grampa Dave

True. Thank you.


17 posted on 06/08/2014 8:14:34 AM PDT by Robert A. Cook, PE (I can only donate monthly, but socialists' ABBCNNBCBS continue to lie every day!)
[ Post Reply | Private Reply | To 7 | View Replies]

To: Jack Hydrazine
Just how many times have they said the economy is turning around?

It is turning around. It's doing a 360 and continuing in the same direction (down).

18 posted on 06/08/2014 8:18:28 AM PDT by Disambiguator (#cornedbeef)
[ Post Reply | Private Reply | To 13 | View Replies]

To: blam

I put a fee thousand on my credit card to pay for more ammo and guns. I did my part.


19 posted on 06/08/2014 8:21:42 AM PDT by Bogey78O (We had a good run. Coulda been great still.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam

Anecdoatally, I visited my old old friends in their new home in rural Virginia.

They purchased their new home for cash in early 2013 at a discount. It was intended to be a model home in a new subdivision but the builder had to sell to raise cash. He ceased building in 2013.

This year, he has built 4 new houses. Three are sold.

The availability of money is apparently there and the situation reversed.

What happens in fly over might be foreshadowing the recovery in the disastrous cities. The cities may never really recover.


20 posted on 06/08/2014 8:30:00 AM PDT by bert ((K.E. N.P. N.C. +12 ..... History is a process, not an event)
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam

From a New York Times piece on Joe Weisenthal: “Weisenthal says his own political thinking has shifted ... to the Keynesian view that the government should borrow and spend massively during a recession.”
Enough said.....


21 posted on 06/08/2014 8:36:10 AM PDT by CivilWarguy
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam

Pure horse manure.


22 posted on 06/08/2014 8:52:14 AM PDT by mulligan (I)
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam

What goes up must come down, sooner or later.


23 posted on 06/08/2014 9:08:44 AM PDT by Kenny
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam

I can only speak for myself.

I am paying down debt and getting ready for inflation.

No luxury purchases for me.


24 posted on 06/08/2014 9:45:40 AM PDT by Red in Blue PA (When Injustice becomes Law, Resistance Becomes Duty.-Thomas Jefferson)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Iron Munro

The Recovery is always just over there.....on the horizon.

Keep looking.......


25 posted on 06/08/2014 9:47:52 AM PDT by Red in Blue PA (When Injustice becomes Law, Resistance Becomes Duty.-Thomas Jefferson)
[ Post Reply | Private Reply | To 4 | View Replies]

To: Bogey78O
"I put a fee thousand on my credit card to pay for more ammo and guns. I did my part."

The Coming Crash in Ammunition Prices

"Ammunition supply looks as though it is ready to catch up with demand. Centerfire pistol and rifle cartridges are available on most store shelves. When I walked into a local Wal-Mart this morning, their were over 30 signs on the ammunition case indicating a rollback of prices by 10-15%."

26 posted on 06/08/2014 9:57:13 AM PDT by blam
[ Post Reply | Private Reply | To 19 | View Replies]

To: blam

Yes, I bought only the calibers I was low on because I see it happening with some. Or in the case of one, a caliber for a gun I just bought. You can pick up some 7.62x39 for 20 cents a round compared to 26 cents a round from a few months ago. When I see the current deals I hop on them though I expect them to have better deals down the road.

I have gunbot set up to only flag the lowest of the low.


27 posted on 06/08/2014 10:08:20 AM PDT by Bogey78O (We had a good run. Coulda been great still.)
[ Post Reply | Private Reply | To 26 | View Replies]

To: blam
Over indebted credit junkies got new credit limits, and we're about to celebrate? Meanwhile, let's continue to crush and suppress and steal from responsible savers and pensioners by keep interest rates near zero and forcing yield seekers to invest in over priced stocks or junk bonds for yield.

It is only a matter of time before the Ponzi collapses on itself.

28 posted on 06/08/2014 10:14:29 AM PDT by JustTheTruth
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam

How about, “Here is the change in government employment at all levels of government for the past five presidents”?

Not the same as your headline that implies difference in government employment and something else.

Most government sector jobs have been lost at the state and local level. At least it is a net loss of government sector jobs, so this chart claims, but it says nothing of the massive increase in federal sector employment.

“Bill McBride at Calculated Risk has updated his chart of public sector employment under Obama and the last few Presidents. As you can see, it’s not even close. The public sector (mostly concentrated at the state and local levels) has aggressively shed jobs during the Obama administration. That’s a trend that never happened under recent Presidents.”


29 posted on 06/08/2014 10:39:13 AM PDT by Sequoyah101
[ Post Reply | Private Reply | To 3 | View Replies]

To: Lurkina.n.Learnin; blam
Thanks for the ping.

It's basically a good point that growth in private debt is a good sign, but the focus on yearly changes in private loans and credit since '08 misses the elephant in the room of how total private debt's been growing compared to how it should grow.  Along with that, we need to remember that federal debt's now soaring past stagnant private debt.

OK, so some folks think it's great that Obama's winding back on federal employees -especially for defense.  I'm not impressed.

30 posted on 06/08/2014 12:16:32 PM PDT by expat_panama
[ Post Reply | Private Reply | To 12 | View Replies]

To: blam

But winter is just around the corner. This will wreck yet another “recovery”


31 posted on 06/08/2014 12:30:26 PM PDT by minnesota_bound
[ Post Reply | Private Reply | To 1 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson