The Obama administration deception in economic reports.

[Neubarth]

Market still going up and economy Down
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All the economic data has been markedly down, and the stock market has soared into the greatest price to Earnings Bubble in recorded history.

Today, the Obama administration reported that Construction Spending was up 0.8% in April. Now, those of us who have been following the economic data know that that is a blatant lie. Yes, the numbers say that CS is up 0.8%, but there was no explanation to go with the numbers, only a loud proclamation that the Economy is continuing its rebound. Bolshoi!

Construction spending on tools, equipment, materials is all down. The only thing that was up was the cost of fuel, and that went up over 2% to the construction industry, because the price of gasoline and diesel went up by 25% in April. Take that cost of doing business out of the equation, and spending on materials and so on actually went down as expected.

Then the Obama administration ballyhooed the increase in income reported by Washington. The reality is that without the federal handouts in tax season, the actual personal income numbers went down. Should government handouts and one time checks to veterans and people on Social Security be counted as personal income as if it was a continuing monthly thing? I think not. At least a disclaimer should have been issued with the report. People all across the country think the economy is rebounding when the reality is that is is still collapsing.

Obama is the most dishonest politician we have ever had in the Oval Office. He is even worse than Nixon. All this false bravado that he has been using to get the stock market to rally so the at risk banks can sell shares is horribly morally wrong.

 

[Neubarth]

An example of the top stories on the financial sites with headlines driven by the Government News Releases.

Top Stories
GM Drives Into Bankruptcy- AP
General Motors filed for bankruptcy protection Monday as part of the Obama administration's plan to shrink the automaker to a sustainable size and give a majority ownership stake to the federal government. GM's bankruptcy filing is the fourth-largest in U.S. history and the largest for an industrial company. The company said it has $172.81 billion in debt and $82.29 billion in assets.

AP - Wall Street Surges on more signs of recovery- There is no recovery.

AP - The 31-year-old in charge of dismantling GM-

NYT - Manufacturing index beats expectations in May- actually the index is negative.

AP - US construction spending posts surprising gain- Actually is is down 41% if you don't count the increase in costs of fuel. If you do count the fuel costs, it is still down 40%

AP - Judge OKs sale of most Chrysler assets to Fiat- This would normally be seen as a bad thing as jobs will be confirmed as lost.

AP - Morgan, Citi launch Smith Barney joint venture early-

AP - Dow Jones swaps Travelers, Cisco for Citigroup, GM- Some company needs to take the place of each failed one.

 

[wimpy77]

you continue to know absolutely nothing. please educate yourself before you post anything. all you do when you post things like this is show your ignorance.

 

[Neubarth]

you continue to know absolutely nothing. please educate yourself before you post anything. all you do when you post things like this is show your ignorance.

Wimpy, you are so fucking stupid it is unbelievable. Try to find an item in the posts above that is in error. Gawd, what a total dork you make of yourself.

 

[Neubarth]

Wimpy, Come on. I am still waiting to see your reply. Name the economic indicators that shows a strong economic rally.

 

[Toro]

Today, China PMI was 53. That is why the market was up 220 points. Last week, consumer confidence had its biggest jump in over 10 years.

But that doesn't really matter. The market always rises before the economy turns better.

And its the President's job to instill confidence in the economy. I never faulted Bush for saying the economy was sound and I don't fault Obama for being positive either.

Of course, this could be a bear market rally. We'll only know in retrospect. But we may have seen the bottom as well.

 

[MaggieMae]

Wimpy, Come on. I am still waiting to see your reply. Name the economic indicators that shows a strong economic rally.

Obama isn't claiming a strong rally. He has consistently said that a turnaround won't really be seen until at least the end of the year. The fact that it seems to be inching forward, and not continually getting worse is, as he said a "glimmer of hope." He's not lying to you. He's just not able to produce the magical results you people immediately want.

{Get an updated pic of yourself. I was hot in 1986, too.}

 

[Neubarth]

Wimpy, Come on. I am still waiting to see your reply. Name the economic indicators that shows a strong economic rally.

Obama isn't claiming a strong rally. He has consistently said that a turnaround won't really be seen until at least the end of the year. The fact that it seems to be inching forward, and not continually getting worse is, as he said a "glimmer of hope." He's not lying to you. He's just not able to produce the magical results you people immediately want.

{Get an updated pic of yourself. I was hot in 1986, too.}

Maggie, every news release out of Washington has been phrased to mislead people for months now. It is one thing to be positive and another to outright lie about the release. We have never seen lies like the news releases on the past year. It is outrageous in the degree of distortion. Week after week after week after week, every news release has had positive spin even though the actual economic numbers have been atrocious.

So many people have been caught up in the hysteria, people who lost forty percent of their portfolios have bought back in in the past week. They are just going to lose 40% more when the stocks revert to a normal P/E.

When I was a young man a normal P/E was 6 - 8. Even if we were to settle for an average P/E of 12, the S&P500 would have to fall from its present P/E of 63 to 12. That would be about one fifth of present valuation, or about 200. How many of those people who already lost 40% would commit suicide if they lost another 80% on top of it?

 

[Neubarth]

Today, China PMI was 53. That is why the market was up 220 points. Last week, consumer confidence had its biggest jump in over 10 years.

But that doesn't really matter. The market always rises before the economy turns better.

And its the President's job to instill confidence in the economy. I never faulted Bush for saying the economy was sound and I don't fault Obama for being positive either.

Of course, this could be a bear market rally. We'll only know in retrospect. But we may have seen the bottom as well.

Toro, China is still communist with a little capitalism added to spice things up. Their economy is controlled, and they have ordered factory production, so their PMI is artificially up. Sadly, their shipments of goods is not up above 50 (break even). Their wearhouses are starting to overflow with goods so the government is buying whole wearhouses and thus listing all the goods therein as sold. That makes the PMI go up, but the reality is otherwise. Geitner is telling the Chinese to get their own people to consume those excess goods. Unfortunately their culture does not need it, so they just stay in the wearhouses with no buyers. Oh My Gosh! Just think, they might have to shut down more factories. As it is the number of workers in those factories decreased by 1% between April and May. Not a good sign when you consider that 8% or more had disappeared in previous months. The Chinese numbers and all those empty cargo ships that are laid up in varous harbors around the world do not speak of good times a coming.

Consumer confidence is a prodect of the Obama deception. People all over the country think that we are in recovery because of the thousands of misleading news stories, just like those I listed today. Total brainwashing of the populace. Obama has done it and I am in Awe of what he has done so that the banks can sell all those stocks to dupes in order to keep their heads above water..

 

[Neubarth]

Pending Home Sales Rise 6.7 Percent in April- AP


Pending U.S. home sales in April posted the biggest monthly jump in nearly eight years, a sign that home sales are finally coming to life after a long and painful slump.

Stocks rise following home sales data- Reuters


Another news release to confuse investors into believing that we are almost back to normal. No disclaimer for the ignorant investors that mortgage rates were steeered to low 4% in april to try to clear out the glut of homes on the market and that now these homes are not moving at all because interest rates had gone back above 5%. Unbelievable dishonesty, but the idea is to move the market up and up so the banks can sell shares and shares of what could be worthless stock. Since the economy is not improving, this will surely destroy the Obama presidency. I am surprized that the Republicans are not trying to call attention to all the misleading news releases that come out with the data.

I refinanced my $200,000 mortgage at 4.375% and took advantgage of the artificial low.

Geitner and Bernanke were doing everything that they could to get money into the banks. The banks were instructed that they were supposed to sell the low rate mortgages, and in turn sell the new mortgages to the FED. The FED was buying any and all paper (bad or good) and then repackaging these loans into bundles and selling to the few stronger banks out there, like Chase.

My original 6% mortgage was with Chase and now I am back with Chase at 4.375% Thousands of people with money bought the houses on the market as investments and managed to get them with low rate mortgages to boot. Now, they are renting the houses at approximately the mortgage rate and seeing their portfolio grow.

The fact remains that this was a gift to the rich and the increase in home mortgages in April was a one time thing thanks to Obama and the "Friends of Obama" who were trying to get capital into the banks so they will not fail in the ongoing Depression.

Again, I ask people to show me the economic indicators that would indicate that we are not in a Depression that is getting worse, regardless of the insane run up in the stock market.

 

[Neubarth]

Note the horrendous distortion in the Initial Claims numbers this week as compared to last.

Initial claims was reported last week as 623,000.

This week it was reported as 621,000

Now here is the news release from Washington.

U.S. Economy: Jobless Claims Fall, Productivity Rises

June 4 Fewer American workers filed claims for jobless benefits last week, signaling that the worst phase of the employment slump has passed.

Initial applications for unemployment insurance fell by 4,000 to 621,000 in the week ended May 30

^^^^^^^^^^^^^^^^^^^
4000? How do you go from 623 K to 621 K which is essentially the same number and claim that the Worst phase of the employment slump has passed????? That was an obvious lie intended to distort. The fact of the matter is that they pretended that everybody knew that they had fudged the numbers from last week and raised them to 625 K after they bragged about how low they were the week before. They are getting as much out of this distortion shit as they can.

Notice also how they claimed how Productivity rose? They pulled the exact same shit on this one, too in that productivity is a measure of the cost of labor. With employment being cut, the cost of employment does indeed improve. BUT it has nothing to do with the economy improving. Indeed, it says the cost of wages has gone down 1% because of the Depression. Just how stupid do they think people are????

 

[Neubarth]

The distortion in the Non Farm Payroll Report. Wide Swings!

In March it was reported as 663,000 but was revised upward to 699,000.

In Jan it was reported as 590,000 but was revised upward to 655,000.

In Dec it was reported as 524,000 but was revised upward to 577,000

In Nov it was reported as 533,000 but was revised upward to 584,000

In Sep it was reported as 240,000 but was revised upward to 320,000

http://biz.yahoo.com/c/e.html

So now in May it is reported as 345,000. Now, why do I doubt the accuracy of the numbers?

Now, if you do a little quick math, you will see that the numbers do not jive with the continuing unemployment numbers. Continuing unemployment is 9.4% from a continuing unemployment number of 8.9% in April. That is a .5% increase in continuing unemployment or, an increase of approximately 650,000. Somehow, the numbers do not jive. Here are the April numbers: http://biz.yahoo.com/c/ec/200919.html

If you estimate the non farm labor pool as approximately 130,000,000 people out of a population of 310,000,000 then .5 is equal to 650,000.

So, what is it? 345,000 or 650,000? Why, if they are making up numbers for the sheeple don't they try to make them half way believable? It is so obvious to see that the numbers are wrong.

 

[Annie]

AP is seeing some gloom among all the 'good news':

My Way News - ALL BUSINESS: Bond-market rout lifts mortgage cost

ALL BUSINESS: Bond-market rout lifts mortgage cost

Jun 6, 8:39 AM (ET)

By RACHEL BECK

NEW YORK (AP) - The Federal Reserve announced a $1.2 trillion plan three months ago designed to push down mortgage rates and breathe life into the housing market.

But this and other big government spending programs are turning out to have the opposite effect. Rates for mortgages and U.S. Treasury debt are now marching higher as nervous bond investors fret about a resurgence of inflation.

That's the Catch-22 threatening to make an awful housing market potentially worse and keep the economy stuck in a funk. Kick-starting the economy requires higher spending, but rising rates mean fewer Americans will be able to refinance their home loans. And some potential buyers will be shut out of the market by higher monthly payments they won't be able to afford.

To understand how this is all connected, you have to think like a bond trader. Inflation is their enemy because it means the purchasing power of the dollars they receive when bonds eventually are paid off will be diminished. The only question is by how much.
Yields on 10-year Treasury notes, a benchmark for home mortgages and other consumers loans, jumped from 2.5 percent in March around the time of the Fed announcement to as high as 3.7 percent in recent days as signs that efforts to stabilize the financial system and economy were starting to pay off. And 30-year mortgage rates jumped more than a quarter-point this week to 5.29 percent, the highest level since December, Freddie Mac reported.

"If the meltdown continues in the bond market, then mortgage yields will soon be at levels that choke off refinancing activity," said economist Ed Yardeni, who runs his own investment firm. "Even worse, they could abort any necessary recovery in home sales and prices."...

 

[STAND4LIBERTY]

Obama is the most dishonest politician we have ever had in the Oval Office. He is even worse than Nixon.

IMHO that's a bit of a stretch, I don't really believe a thing that comes out of the White House anymore but President Obama really hasn't been in office long enough to take Tricky Dick's heavyweight liar champsionship belt --- YET.

All this false bravado that he has been using to get the stock market to rally so the at risk banks can sell shares is horribly morally wrong.

The false bravado isn't what alarms me, it's the massive expansion of the both the Fed's balance sheet and government spending that this administration is facilitating that does. Of course inflationary policies lead to upturns in the equities markets however the ensuing hangovers are generally fairly nightmarish and when the music stops and the piper must be paid who do you think is going to be left without a chair ? the political elites and their corporate sponsors or the average American?

 

[Neubarth]

Wimpy, Come on. I am still waiting to see your reply. Name the economic indicators that shows a strong economic rally.

Obama isn't claiming a strong rally. He has consistently said that a turnaround won't really be seen until at least the end of the year. The fact that it seems to be inching forward, and not continually getting worse is, as he said a "glimmer of hope." He's not lying to you. He's just not able to produce the magical results you people immediately want.

{Get an updated pic of yourself. I was hot in 1986, too.}

The real unemployment in May. Obama lied!
Quote

The media is regurgitating what the Obama minions feed them. Lie after lie after lie after lie.

Compare the numbers as I have pointed out. Obama's stooges say that unemployment only increased by 345,000 in May.

The Department of Labor said that Unemployment increased 0.5% in May, or 700,000 (Twice what Obama said)

And yet the number of people who filed for Unemployment Benefits in May were over two million 500 thousand (2,500,000)!!!

There is no way in high holy hell that any intelligent person would ever believe the Obama numbers. Nothing but lies!

 

[Mad Scientist]

The real unemployment in May. Obama lied!
The media is regurgitating what the Obama minions feed them. Lie after lie after lie after lie.
There is no way in high holy hell that any intelligent person would ever believe the Obama numbers. Nothing but lies!

I think it's less Obama lying and more Obama has no clue what he's doing.

He's good at "Community Organizing", getting and spending money. After that I'm not sure he understands anything else.