Listen, the U.S. is better, stronger, and faster than anywhere else in the world:
http://www.thedailybeast.com/newswee...here-else.html





Listen, the U.S. is better, stronger, and faster than anywhere else in the world:
http://www.thedailybeast.com/newswee...here-else.html
Last edited by eagle2; 08-23-2012 at 12:09 AM.



That article is a cheerleading piece..... This recovery is the worst recovery of all time..... We needed at least 5% year over year growth.... Instead we got this.
gdp fredgraph.png
Daniel Gross is a writer of finance...... He doesn't use many statistics, just success stories..... Another writer could easily write a column detailing the many many people facing forclosure, and job loss.
The country has been looted.
Gross certainly accentuated the positive and totally ignored the long list of negatives. Aside from being four months out of date, his numbers on growth are WRONG. Our current growth rate is NOT 3 %. It is 1.5%. Next Quarter it is predicted to be .5 % and many economists are predicting another recession.
He also just focused on the corporate picture which is admittedly rather good. The problem is that little of that success is filtering down to the rest of us. Wages and living standards are stagnating and even declining. And of course he totally ignores the latest trillion dollar deficit ( 4th in a row isn't it ? ) , the "Fiscal Cliff" , Social Security, Medicare, Medicaid and all the other trillions in unfunded liabilities.
Nice try Eagle. I know you were just trying to cheer us up.





Even though it constitutes pouring cold water on your author's 'glowing' portrait, some fact checking is in order.
Your author repeatedly cites supposed success stories based in increased sales. However, your author deliberately omits the fact that virtually all of his examples, from GM to solar trash compactors to GE gas turbines, are having their sales driven via US taxpayer subsidies !!!
Your author repeatedly cites supposed success stories based on US companies increasing their 'share' of overseas markets. However, your author deliberately omits the fact that virtually all of his examples achieve 'paper profits' from overseas markets by A. increasing use of overseas production facilities which can take advantage of lower labor and benefit costs, low / no regulatory compliance costs, etc. and B. escaping US corporate tax liabilities being leveed on the overseas profits
Arguably, some of the supposed success stories cited by your author are actively contributing to the bankrupting of America, or at least the bankrupting of American taxpayers !!!
As to less distorted examples of success stories i.e. Ford, your author doesn't employ any sort of objective yardstick to back his claims of 'better, stronger, faster'. For an objective yardstick, try comparing Ford to Volkswagen or Hyundai ... both of which make Ford's efforts look pitifully anemic !!! Essentially, Ford's situation only looks good in comparison to GM. Also, Ford's 'success' could just as easily be credited to the Fukishima disaster temporarily knocking Honda, Toyota etc. off balance by disrupting their long supply chain of imported Asian made automotive components.
If there is any 'positive' statement being made by your author, it is arguably this ... Crony Capitalism Works. Well, as long as US taxpayers continue to provide subsidies anyhow !!!
Last edited by Melonie; 08-23-2012 at 11:28 AM.





oh, a PS
I have an 'ethics' problem where investing in Crony Capitalism supported companies is concerned ... because I simply don't feel that 'cashing in' on capital gains and dividends that are actually being ( unknowingly ) funded by current and future US taxpayers is ethically acceptable. Of course there are large numbers of other investors who have no such reservations.





There are some kernals of truth in eagle2's article and in mikef's graph. Our recovery is not a good one. Cause mainly by poor economic decisions from the White House, compounded by intransigence among the GOP's right wing and a very un-healthy dose of avoiding reality from the Democrats left wing. But, I think the seeds have been sown for a major economic expansion. Where the doom and gloom crowd sees a loss of manufacturing, I don't see that in the data. What has happened is we don't have bad manufacturing jobs any more. Manufacturing jobs now require at least post high school technical training and a healthy ability to do math and work a computer. The drudgery of manufacturing is now done by CNC machines. Those bad manufacturing jobs which were both dangerous and dirty have been replaced by equally bad, worse paying retail jobs whose only virtue is a much reduced probability of being injured on the job.
Obama has crippled our banking system by insisting on the weakest form of the Voelker Rule imaginable. (A version that will not have any benefit, I might add.) He did so to maintain the growing power of a few big banks that happened to support his candidacy. Having done so, the banks that should be leading the way out of the recession by lending to small and medium size businesses are not able to because Obama and their leaders decided government guaranteed returns were a better way forward. Well, loaning money to your cronies for 2% and then borrowing it back from them at 4% only assures that the banks make money, not that they will lend money to people who can put it to productive use. Yet, that is what Obama has done and says he will continue doing if re-elected.
To make matters worse, Obama has come up with possibly the worst, most lethargic bureaucracy to address the foreclosure crisis one could imagine. Only a tiny percentage of home loans have been modified with many more borrowers refused for minor or even non-existent paperwork errors. If ever there was a reason to favor smaller government over larger, this is it!
Last, Obama's justice department has refused to prosecute financial crimes and fraud by the too big to fail banks. The Justice Department has cut deal after deal with various banks and brokerages to pay some small fine but not admit wrong doing and not taken a single banking charter. Not one. You cannot tell me that Bernie Madoff, who admitted his crimes, is the only person involved in criminal activity on Wall Street. But, that's where the SEC and Justice Department are. All of these factors make it possible for the bankers and brokers who no longer have any risk, only rewards to stay in the business. In a capitalistic system, the crash of 2008 would have broken up many a bank and many more brokerages. The business would remain, but the corrupt and inept would be swept away leaving the competent and the true risk takers behind to clean up on the now freed up business. Obama made sure that did not happen. So we have left in place his cronies who don't take risks because they don't have to, the gains are pre-figured in for them. The rest of the economy suffers with anemic growth rates while Obama calls this, "the new normal." Or worse, he says that the risk taking business person who puts her entire net worth on the line for the success or failure of a company did not build that. Well guess what Barry, if my business goes under, you won't suffer. I will. Now, who built what?
Z



Of course there are no charges pressed..... The fix is in..... It really is like living in a third world country..... Where everyone knows the govt. and it's agencies are not really looking to inforce the law.... Only in serving those with the money and power..... And the people just scratch their head, and say.... "Well, what are you going to do? Hey I have to run. Dancing with the Stars is on."
As for crimes..... This article has many many documented links to criminal activity by big banks & Wall Street firms..... Take the time.... But make sure you haven't eaten just before you read.
http://www.ritholtz.com/blog/2012/07...l-enterprises/
The country has been looted.





Actually it's worse than living in a third world country. At least if you are living in a third world country you won't be heavily taxed and will be 'left alone' by the gov't !!!Of course there are no charges pressed..... The fix is in..... It really is like living in a third world country.



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