Recession Ending

[rickoff]

A grim outlook, according to Roger Altman

The tax cuts of the last decade, combined with this year’s tremendous federal spending binge, are creating a “fearsome” fiscal crisis, the worst budget deficit that that U.S. has faced in 75 years, says former Clinton administration Deputy Treasury Secretary Roger Altman.

“America's fiscal dilemma is unprecedented,” writes Altman.
“All the data are signaling weakness. Consumer spending, which represents 70 percent of gross domestic product, and employment are especially downbeat. Joblessness, having hit a 26-year high, will not improve much through 2010. The pace of recovery, therefore, will be painfully slow.”
Through 2019, private forecasts predict deficits averaging approximately $1 trillion a year. Then, the federal deficit will represent 6.5 percent of GDP.
The national debt will also hit “nearly 85 percent of GDP,” writes Altman. “Annual interest costs on it would exceed the U.S. defense budget and the whole category of discretionary spending.”

Does this sound like a recession ending?

[Vortex]

"I am not overly concerned," Greenspan said ..
Yep, no concerns ..

Rick said: "Does this sound like a recession ending?"

Don't forget Act II ... same play book, same play.
The increase of interest rates to prevent inflation
from all that spend spend spending.
Remember, ALL "money" that exists, exists only because it was LOANED ..
thus a huge sucking sound shall be heard as the money begins to
be retracted due to lack of loaned money as interest rates are raised.
The interest increases will cause much more of the same .. just FASTER.
But on the bright side of things, our trade deficit will shrink even more.

yes, I agree, one can barter for things ...
I know not of a corporation: Water, Sewer, Electric, Telephone, Gas,
Insurance, Property Taxes, State inspections, State Licenses,
Traffic Tickets, Lawyers, Drugs, Hospitals, etc.
that will BARTER their services or products.

[future pather]

(trying to delete double post.)

[future pather]

yes, I agree, one can barter for things ...
I know not of a corporation: Water, Sewer, Electric, Telephone, Gas,
Insurance, Property Taxes, State inspections, State Licenses,
Traffic Tickets, Lawyers, Drugs, Hospitals, etc.
that will BARTER their services or products.

Well then stop complaining and start one. My point being you either want the casino or not, or you're willing to start your own.

If you can't step up then stop spending all your time *****ing, lol.

These things are successful for a reason. Bc we all use them. So don't turn around and be mad. I am grateful I am able to have obtained mortgages.

Not that attempts shouldn't be made to stop corruption.

And I see that being done on many fronts right now. . .which is why people like me see things only getting better for the economy. For exampleI think "it's on" (lol) right now bt the bankers and our federal gov:

Oct. 16 (Bloomberg) -- White House officials say they are growing frustrated that the banking industry is fighting President Barack Obama’s plan to overhaul financial regulations after taxpayer bailouts helped firms restore profits and near- record compensation for executives.

Their anger is directed even at firms such as New York’s JPMorgan Chase & Co. and Goldman Sachs Group Inc. that have paid back their government assistance and reported a surge in third- quarter earnings this week. The issue, according to administration officials, is the industry is generally on sound footing because of government help and lobbying against Obama’s regulatory plans goes against the nation’s long-term interest.

“We are disappointed by the lobbying of anyone in the financial industry against regulatory reform, considering the obvious need for change on that front,” Valerie Jarrett, a senior adviser to Obama, said.

Wall Street regulation is scheduled to be among the topics when Jarrett, Obama adviser David Axelrod and White House Chief of Staff Rahm Emanuel appear on Sunday news talk shows Oct. 18.

The administration is mounting a counteroffensive by pointing to a disconnect between Wall Street and the rest of the country: while some big banks report compensation plans and profits at pre-crisis levels, the unemployment rate rose to 9.8 percent last month and home foreclosures jumped 29.2 percent from a year earlier.

Messengers

The tougher message is being repeated from the president on down.

Now is the time for “firm rules of the road so that banks can’t game the system and the financial crisis on Wall Street doesn’t end up hurting folks on Main Street,” Obama said last night at a Democratic Party fundraiser in San Francisco. .. .

Obama Administration Pushes Back at Bank Lobbying on Regulation - Yahoo! News

[rickoff]

Wall Street regulation is scheduled to be among the topics when Jarrett, Obama adviser David Axelrod and White House Chief of Staff Rahm Emanuel appear on Sunday news talk shows Oct. 18.

Well, that certainly is comforting to hear. Rahm Emmanuel has a background as an investment banker, working for Wasserstein Perella. In 1990 he became managing director of the bank's Chicago office. During his 2 and 1/2 year term in that capacity, he was paid 16.2 million dollars. At the same time, he was named to the Board of Directors of Freddie Mac (remember the recent Freddie Mac scandal?), and made another $320,000 in that capacity.
"During his time on the board, Freddie Mac was plagued with scandals involving campaign contributions and accounting irregularities. The Obama Administration rejected a request under the Freedom of Information Act to review Freddie Mac board minutes and correspondence during Emanuel's time as a director." - Wikipedia


Hmmm, if that doesn't sound like a cover-up, then I don't know what does. But what the heck, I'm sure we can believe that Rahm is all for reigning in big banker abuse, right?


As to David Axelrod: David is the "A" partner in ASK Public Strategies, a firm that, "discreetly plots strategy and advertising campaigns for corporate clients to tilt public opinion their way"... " the firm helped set up front organizations that were listed as sponsors of public-issue ads." - Business Week, March 14, 2008

In other words, ASK set up what appeared to the public to be grassroots campaigns for worthy causes, while in actuality they were corporate schemes to make money while obtaining widespread public support to carry out their agenda. One of ASK's clients, ComEd, an electric company, paid ASK $15 million to run a scam for them that resulted in the public's willingness to pay much higher rates for service.

In the latest Axelrod scandal: "Critics of President Obama’s health-care overhaul are zeroing in on his senior adviser David Axelrod, whose former partners at a Chicago-based firm are the beneficiaries of huge ad buys — now at $24 million and counting — by White House allies in the reform fight. The unwelcome scrutiny.... comes at an inopportune time as Obama seeks to shore up support for health care reform. It revolves around two separate $12 million ad campaigns advocating Obama’s health care plan that were produced and placed partly by AKPD Message and Media, a firm founded by Axelrod that employs his son and still owes Axelrod $2 million." - David Axelrod's ties targeted in health fight - Kenneth P. Vogel - POLITICO.com

Surely, though, Axelrod must be a fine upstanding man who is dedicated to toppling the corporate bankers, and promoting the interests of the people, right? Why else would he be Obama's top advisor?

I'm sure that both Emmanuel and Axelrod will have some polished answers ready for the October 18 talk shows, as will Obama. All three are accomplished and masterful spin doctors. Knowing how the mainstream media works, I seriously doubt that any questions regarding the topics I have covered here will ever be brought up during the broadcast.

Rick

[rickoff]

Fundraiser?

Now is the time for “firm rules of the road so that banks can’t game the system and the financial crisis on Wall Street doesn’t end up hurting folks on Main Street,” Obama said last night at a Democratic Party fundraiser in San Francisco.

Hmmm, I wonder who was the organizer for that fundraiser? Could it possibly be Robert Wolf, the CEO of UBS Americas, the Swiss banking giant that got off with a mere slap in the hand from the Obama administration, and now faces no further prosecution for their scandalous and illegal activities in directly assisting wealthy clients in their efforts to evade paying taxes? The UBS CEO was a top fundraising organizer in NY City for Obama's presidential campaign, after all, so it makes sense that Obama might hope to make good use of his close relationship with the banker once again.

Incidentally, the words you quoted above, as spoken by Obama, were obviously spoken to a group of wealthy individuals that included bankers, brokers, and others involved in the financial sector. The people from Main Street don't get invited to these political fundraisers, which often charge thousands of dollars for a seat at a fundraising dinner affair. Do you really think these folks give a hoot about people on Main Street being hurt by Wall Street? The talk may sound tough, but it's just media spin. Remember - actions speak louder than words, and when Obama had the opportunity to bring the hammer of justice down heavily against UBS, he failed to do so. His words are just hot air and rhetoric. He says the words that he knows the public wants to hear, and many - like you - will actually believe him. It's sad, but it doesn't surprise me.

Rick

[wpage]

Time will tell

Certainly we are not close to being out of the woods with the economy. The current administrations moves up till now have been risky and novel.
It will be interesting to see how this shakes out. The politics of all this never
ceases to amaze...

[aljhoa]

Time will tell

Certainly we are not close to being out of the woods with the economy. The current administrations moves up till now have been risky and novel.
It will be interesting to see how this shakes out. The politics of all this never
ceases to amaze...

"In the face of total global economic collapse, the prospects of a massive international war are increasing. Historically, periods of imperial decline and economic crisis are marked by increased international violence and war. The decline of the great European empires was marked by World War I and World War II, with the Great Depression taking place in the intermediary period."
An Imperial Strategy for a New World Order: The Origins of World War III
Al

[rickoff]

Forgot to mention....

Quote:
Originally Posted by future pather
Wall Street regulation is scheduled to be among the topics when Jarrett, Obama adviser David Axelrod and White House Chief of Staff Rahm Emanuel appear on Sunday news talk shows Oct. 18.

I see that I forgot to mention Valerie Jarrett in my previous post regarding the above quote. The following example should be enough to demonstrate that Jarrett is not concerned about people on Main Street. In fact, after earning well in excess of a million dollars income in 2008, Jarrett is completely out of touch with the reality that us "po folk" live with every day.

Obama Advisor Valerie Jarrett (D-IL): CBS News once called Chicago politician Valerie Jarrett "the other side of Barack Obama's brain." Residents of a housing project in Chicago simply know her as "slumlord." Jarrett is the former manager of Grove Parc Plaza, a controversial low-income housing project located in Obama's former state senate district. According to the Boston Globe, the housing complex was considered "uninhabitable by unfixed problems, such as collapsed roofs and fire damage... In 2006, federal inspectors graded the condition of the complex an 11 on a 100-point scale - a score so bad the buildings now face demolition." According to documents uncovered by Judicial Watch, Jarrett is also linked to a series of other shady real estate scandals involving convicted felon and former Obama fundraiser Antoin "Tony" Rezko. - Judicial Watch Judicial Watch

In addition, having served as chairman of the Chicago Stock Exchange from 2004-2007, it is highly unlikely that she would be in favor of any kind of meaningful regulation of Wall Street activities.

Rick

[Aaron]

economy

It always seems to be the fox guarding the hen house kind of thing. Just like when George Bush was going to investigate himself!

There is no way any of these people will allow themselves to be regulated in any real or meaningful way. It is nothing but a language game.

I'm for banning the the federal reserve and irs and erasing 100% debt as being completely illegal and turning the money business back to the treasury under the power of congress under the power of the people. Until this big move is made, all we're doing is reshuffling around a broken house on a bogus foundation.

Unemployment is apparently around 20% from what I can gather from all the available information and even if there are less unemployment applications in any one week compared to the one before, the TOTAL NUMBER of unemployed people is RISING. Any decrease in the % of applications isn't a decrease in quantity of unemployed people, just a slight slow down of the number of unemployed people that is growing.

Personally, I don't allow the economic situation to dictate what my own mindset will be as far as my ability to generate income but I do believe in paying attention. Eternal vigilance always!

[rickoff]

I'm for banning the the federal reserve and irs and erasing 100% debt as being completely illegal and turning the money business back to the treasury under the power of congress under the power of the people.

Right, Aaron, that is the only way we can save our country from ruination. I'm sure the Fed has seen this coming as an inevitable eventuality, and no doubt that is why they ensured that one of their own (Tim Geithner, former director of the Federal Reserve Bank of New York) was installed as Secretary of the Treasury in the Obama administration. In this position, he wields great power over monetary policies, and has been given sole discretion (no Congressional approval needed) as to how the massive banking bailout bill funds are used. Note also that Geithner was the one who proposed the establishment of "bad banks" that would buy and hold toxic assets (basically worthless investments that no one wanted) which of course the US taxpayers would end up footing the bill for.

The fact that Geithner was confirmed for the Secretary of the Treasury position is a slap in the face to all working class US citizens who pay their fair share of taxes. It was known, and brought up during the confirmation hearings, that Geithner had failed to pay $35,000 in self employment taxes for several years. It was also noted that he had failed to pay taxes in some previous years, but that the statute of limitation had expired. Geithner felt no obligation to pay any of his outstanding tax obligations until being appointed as Treasury Secretary by Obama. Amazingly, while Geithner's IRS settlement paid the taxes owed, plus $15,000 in interest, no fines or penalties were levied against him for this blatant tax evasion! Any of us common folk would surely have gone to prison for several years had we cheated on our taxes to the extent that Geithner did. Geithner's claim, at the confirmation hearing, that his non-payment of taxes was simply the result of "unintentional errors" was an outright lie, and this fact is borne out by the following quote:

"Geithner said at the hearing that he was always under the impression that he was an employee, not a self-employed contractor, while he served as director of the Policy Development and Review Department of the IMF. Geithner's comments are contradicted by the Senate report that showed he was not only informed of his status, but that he actively applied for the allowance."[35] - Wikipedia

Even after the Fed is abolished, we don't want money turned back to the Treasury Department while Geithner is in control. He, and any other corrupt individuals who head the Treasury must be thrown out and replaced by men of integrity who understand that they work for the people, not for the power hungry and corrupt bankers and corporations.

Rick

[Vortex]

Just some more numbers about the recovery.
Chart Source Link: Wikinvest News - The Baltic Dry Index And The Markets: Forget The Correlation Myth

The article wants you to believe "the market" lives and breathes independent from the reality of real goods or products and
I agree in that respect.
The markets have always been controlled by those with unlimited (out of thin-air) funds.

Below is a chart of
Capacity Utilization: Total Industry
Source: Board of Governors of the Federal Reserve System


WATCH THESE !! VIDEOS !!
On the Edge with . . . Michael Hudson (1/2)
Latvia's housing prices has dropped 75%.
On the Edge with . . . Michael Hudson (2/2)
Latvia (the country) is being told by the banksters to close hospitals, etc.. they can't afford them.
So Latvia has passed a law that home owners can just drop off the house
keys and WALK-AWAY from the mortgage.
Iceland housing prices have fallen 75% also.
Government Bail-outs were planned world wide, years in advance ..

chart of the Baltic Dry Index
This is an index that tracks the activity of global shipping rates, and is a proxy for how robust the global economy is.



They point to productivity gains as recession turn around,
which has nothing to do with a recovery.
Productivity gains amounts to people working longer / harder / cheaper
hours for fear of losing their jobs ..
See factory Capacity Utilization chart above for the real story.

3000 YEARS OF DEBT HANDLED, works every time .. No SWEAT
Michael references Biblical law about debt
Six Minutes with the Renegade Economist - Michael Hudson Special...

[carbideTip]

YouTube - BILL MOYERS JOURNAL | Rep. Marcy Kaptur and Simon Johnson | PBS

[Aaron]

BILL MOYERS JOURNAL | Rep. Marcy Kaptur and Simon Johnson | PBS

Great video! Bill Moyers and another 5 star interview!
YouTube - BILL MOYERS JOURNAL | Rep. Marcy Kaptur and Simon Johnson | PBS

[d3adp00l]

FP are you fricken HIGH! or just braindead?

I am grateful I am able to have obtained mortgages.

Let me make something clear to you. Mortgages are a result of the fiat currency, and inflation, and taxes, and a few other things.

I am sure about now you are saying BS.

Well like I said let me show you something. You got a mortgage why? Because you couldnt pay cash for your home. Well I ask myself why couldn't you? Because the price is so high, but why is the price so high? Well the obvious answer is because thats what it costs to build it right? WRONG!!!!

a 2000 sqft house costs around 50,000.00 to build, and thats paying for taxes on the labor and material.

Well what about land? Well its worth what you will pay for it. So you are convinced by someone that it is whatever it is.

Convince, is the root for the expression "CON'ed"

You see since the banks have given you access to a loan, you can, and will pay more for something, just because you have the ability to do it.

You see not that long ago people didnt get mortgages. Please do some history studing on mortgages, it won't be easy since they don't want you to know that not that long ago people didnt get them, they want you to think thats its just the normal way of life, and you should just fall in line. Again you've been CON'ed

Then take that mortgage history and look at the home price increase.

Lets put it this way, you have a home for sale, and there are two people who want to by it. One has cash in hand, but another has a bank loan, and is offering a little more. Who are you selling your home to?

I know the answer, well the guy with the cash, goes to the bank and says, hey loan me a couple extra bucks, and then he comes back and offers more?

So you sell it. Your nieghbor looks in the public records and sees how much your house sold for, and he thinks his house is better than yours, and therefore sells his for even more.

Its called a speculative market, and it is evil, and the banks love it, because it puts everyone in debt to them. This is the same thing for the stock market.

Speculative markets should be banned, they exist only for the benefit of the greedy.

And the dollar? they won't raise the interest rate, they will let the inflation hit. then you will accept a new currency.

People need to stop acting like greedy children, a child will eat all the candy in the halloween bag, even if its bad for them.

JUST CAUSE YOU WANT SOMETHING AND CAN DO SOMETHING DOESNT MEAN YOU SHOULD!!!

Be an adult think in long term consequence to your actions.

Oh wait that doesnt fit in todays humanistic ID centered world view, I am sorry