Why The Economy is Better than You Think

[Nate Peele]

It is about time the McCain campaign set the record straight. If you haven’t read today’s Bloomberg you need to check out McCain adviser Kevin Hassett of the American Enterprise Institute’s column calling out the press for “politically motivated pessimism”. According to Hassett:

The bias has an easy explanation. Yale University economist Ray Fair has shown that a weak economy hurts the incumbent party. If a Democratic-leaning press can convince everyone that the economy is in recession, then it can influence the election.

Truer words have never been spoken. What the left wing biased mainstream media is doing is acting like gas is way overpriced at $4.25 per gallon or that the recent 5.5 percent unemployment rate is bad. They love acting like there’s a mortgage crisis, but all America really needs is a little bit of gumption and hardwork. I can tell you that the economy is doing great thanks to the Bush tax cuts and this is coming from a guy who only gets 9 miles a gallon. Don’t let the media tell you otherwise. In the words of the immortal Bobby McPherin, “Don’t worry be happy.”

 

[jreeves]

It is about time the McCain campaign set the record straight. If you haven’t read today’s Bloomberg you need to check out McCain adviser Kevin Hassett of the American Enterprise Institute’s column calling out the press for “politically motivated pessimism”. According to Hassett:

The bias has an easy explanation. Yale University economist Ray Fair has shown that a weak economy hurts the incumbent party. If a Democratic-leaning press can convince everyone that the economy is in recession, then it can influence the election.

Truer words have never been spoken. What the left wing biased mainstream media is doing is acting like gas is way overpriced at $4.25 per gallon or that the recent 5.5 percent unemployment rate is bad. They love acting like there’s a mortgage crisis, but all America really needs is a little bit of gumption and hardwork. I can tell you that the economy is doing great thanks to the Bush tax cuts and this is coming from a guy who only gets 9 miles a gallon. Don’t let the media tell you otherwise. In the words of the immortal Bobby McPherin, “Don’t worry be happy.”

I believe you have to provide the source if you are going to provide a quote?

 

[Toro]

I believe you have to provide the source if you are going to provide a quote?

Right here.

That is exactly something Hassett would say.

Bloomberg.com: Opinion

 

[jreeves]

Right here.

That is exactly something Hassett would say.

Bloomberg.com: Opinion

I think the point of the article was that things aren't as dire as is being potrayed in the media. We are not headed for a depression. It is even highly questionable if we are in a recession by the classic definition. I don't think he was arguing people aren't feeling a pinch, but that it isn't as dire as some would like you to believe.

 

[Nate Peele]

I believe you have to provide the source if you are going to provide a quote?

I'm sorry, that's what I meant when I said If you haven’t read today’s Bloomberg you need to check out McCain adviser Kevin Hassett of the American Enterprise Institute’s column calling out the press for “politically motivated pessimism”.

 

[Nate Peele]

I think the point of the article was that things aren't as dire as is being potrayed in the media. We are not headed for a depression. It is even highly questionable if we are in a recession by the classic definition. I don't think he was arguing people aren't feeling a pinch, but that it isn't as dire as some would like you to believe.

Exactly my point. There are a few isolated examples of people having hard times of it (usually cause they're lazy), but the economy is doing great for the most part.

 

[jreeves]

Exactly my point. There are a few isolated examples of people having hard times of it (usually cause they're lazy), but the economy is doing great for the most part.

I wouldn't say great, but definetly not headed for a depression as some would have you believe. Did you actually read the article or are you going to portray it as saying the article states the economy is in "great" condition?
The point of the article is....

The idea that the U.S. is in a terrible recession that may turn into a depression has spread like a malicious computer virus.

Is false

 

[Diuretic]

I'm sorry, that's what I meant when I said If you haven’t read today’s Bloomberg you need to check out McCain adviser Kevin Hassett of the American Enterprise Institute’s column calling out the press for “politically motivated pessimism”.

So, none of this is really happening right?

Jeez that's a relief, I was started to get worried!

 

[Diuretic]

I wouldn't say great, but definetly not headed for a depression as some would have you believe. Did you actually read the article or are you going to portray it as saying the article states the economy is in "great" condition?
The point of the article is....

The idea that the U.S. is in a terrible recession that may turn into a depression has spread like a malicious computer virus.

Is false

I'm far from being an economist (as I've mentioned a number of times) but my understanding was that being in a recession can be okay provided it triggers corrective action. But to trigger corrective action there's a requirement to be aware of the recession. Again, just my impression, but I understood also that it takes a while for the signs of recession to be recognised, it's usually well into recession that anyone notices and begins to take the required corrective action. So it seems to me also that (a) if someone doesn't notice or (b) they notice but ignore it for political reasons, proclaiming the lie that "the economy is in great shape" that that may just create the right conditions for an outright depression.

 

[Toro]

I think the point of the article was that things aren't as dire as is being potrayed in the media. We are not headed for a depression. It is even highly questionable if we are in a recession by the classic definition. I don't think he was arguing people aren't feeling a pinch, but that it isn't as dire as some would like you to believe.

We are not going into a depression, that is for sure. And the whether or not we are technically in a recession - which is defined as a significant contraction in a wide array of economic indicators by the National Bureau of Economic Research - or just stagnating is up for debate.

However, what is not up for debate is how the consumer is feeling. The University of Michigan and the Conference Boards indices of consumer confidence is at lows not seen since the early 1990s. The consumer is seeing foreclosures not seen in nearly two decades. The consumer is seeing his/her home drop in price unseen since The Great Depression. The consumer is seeing inflation. The consumer is seeing stagnation or decline in his/her income after inflation. The consumer has seen an acceleration in credit card debt as they put more and more of their day to day items on credit.

This is what the press is reflecting. The economy may or may not be in a technical recession. But the economy has grown by less than 1% annualized the last two quarters - the slowest since 2001 - which means that since the population grows 2% per year, per capita output is falling. And because after-tax disposable income relative to GDP is at its lowest in decades and has been declining, consumers are feeling it even more.

 

[editec]

The economy is what it is.

What you call the state of our economy is completely irrelevant.

I think this guy is somewhat nuts, personally.

Imagining that economic reports are some kind of liberal biased media conspiracy is of course, partisan insanity.

Unemployment is up, inflation is up, the stock market is down, energy prices are spiking, and the net worth of most people (which is tied to the value of their homes, their only real investment) is down, thus adding to the liquidity crises.

Something like 2,000,000 households are facing losing their homes in the next year or so.

With something like half the American households in pretty serious financial straits, I think we're entering a period of obvious stagflation.

The problems we have have nothing to do with the upcoming election and everything to do with decades of stupid short sighted economic and tax policies.

 

[Nate Peele]

I'm getting so tired of seeing stories about how high gas prices are. I don't even think people would think that they were high if the nightly news wasn't constantly telling them that the price is so high. The same with unemployment.

 

[editec]

I don't even think people would think that they were high if the nightly news wasn't constantly telling them that the price is so high. The same with unemployment.

And if you click your heels together three times and repeat "There's no place like home. There's no place like home. There's no place like home" you'll be whisked back to Kansas, too.

I may have to sell my home because I may not be able to heat it this winter.

I can assure you that I do not need to read that fact in the papers to know that it isn't a good thing. sport.

If this energy spike isn't going to effect you in such a dramatic way, bully for you.

But for about half of your fellow American citizens this is not a minor problem.

Inevitably their pain will become YOUR pain.

 

[wayne]

Facts are facts, what is, is and wishful thinking will not make it go away. That fact is that prices are gong up and people are hurting and it is almost all because of the cost of oil, but I cannot blame Bush for that he tried to encourage domestic production. But, liberal democrat environmentalist blocked him; the same people that want to blame him now for the problem. However that is the past I can blame him for not calling for an end to speculating on oil. However, none of this reflects on Mc Cain he goes his own way.

 

[jillian]

Facts are facts, what is, is and wishful thinking want make it go away. That fact is that prices are gong up and people are hurting and it is almost all because of the cost of oil, but I cannot blame Bush for that he tried to encourage domestic production. But, liberal democrat environmentalist blocked him; the same people that want to blame him now for the problem. However that is the past I can blame him for not calling for an end to speculating on oil. However, none of this reflects on Mc Cain he goes his own way.

It has nothing to do with production. It has to do with speculators and price gouging.

But I wonder how much $$ has gone into Dick Cheney's blind trust from his oil intersts.....

 

[Paulie]

I'm not sure what's so scary about a recession.

They're a necessary economic occurance to clear out all the problems within the market.

Trying to tinker with interest rates, and printing more money to bail out banks and try to "save" the country from a recession is only going to make it worse.

I'm not sure how anyone can look at the current debt situation in this country and think that no matter what, we'll all be ok, because our favorite presidential candidate's "advisor" says so.

You want to keep putting a band-aid on a severed limb, be my guest. I'll be preparing for the worst, hoping for the best, and feeling pretty good about it in between because I wasn't ignorant to the possibilities.

And let's turn it into a partisan issue, too. That always makes things better in this country.

Like the so-called liberal media is the only place you'll hear the bad news.

I suggest you listen to a man named Peter Schiff. He's predicted everything that's happened to our economy for the last 15+ years, while the MSM pretended nothing was wrong until it was too obvious to ignore any longer.

 

[jreeves]

We are not going into a depression, that is for sure. And the whether or not we are technically in a recession - which is defined as a significant contraction in a wide array of economic indicators by the National Bureau of Economic Research - or just stagnating is up for debate.

However, what is not up for debate is how the consumer is feeling. The University of Michigan and the Conference Boards indices of consumer confidence is at lows not seen since the early 1990s. The consumer is seeing foreclosures not seen in nearly two decades. The consumer is seeing his/her home drop in price unseen since The Great Depression. The consumer is seeing inflation. The consumer is seeing stagnation or decline in his/her income after inflation. The consumer has seen an acceleration in credit card debt as they put more and more of their day to day items on credit.

This is what the press is reflecting. The economy may or may not be in a technical recession. But the economy has grown by less than 1% annualized the last two quarters - the slowest since 2001 - which means that since the population grows 2% per year, per capita output is falling. And because after-tax disposable income relative to GDP is at its lowest in decades and has been declining, consumers are feeling it even more.

What goes up, must come down. Real Estate prices on a whole until recently have been exploding. The housing market was due to see a drop.

This 'almost recession' or 'recession' will be over by the end of this year or early next year(no matter who wins the presidency). That picture is not being portrayed to the American public like the doom and gloom of a 'near depression' or 'terrible recession'. Even though it has been meager growth it has been growth.

 

[jillian]

riiiiiiiiiiiiiiiiiiiiiiiiiight.... the recession is a vast, left-wing conspiracy...

 

[jreeves]

riiiiiiiiiiiiiiiiiiiiiiiiiight.... the recession is a vast, left-wing conspiracy...

riiiiiiiiight way to read what you want...that's not what I said.

 

[editec]

What goes up, must come down. Real Estate prices on a whole until recently have been exploding. The housing market was due to see a drop.

Exactly right.

Median housing prices must, sooner or later, bear some some relation to the median salary.

What happened is that the easy money available drove up the price of housing beyond the median salary's ability to repay the loans.

The median price for homes should hover at 100 - 200% of the median family income, tops.

Look at the numbers for 2006...

In 2006, the median annual household income was $48,201.00 according to the US Census Bureau.[3]

source: Wikipedia

Median house price in U.S. in 2006? $217,900

The median price of housing was bound to fall.

The bubble burst because the rising prices of housing were simply unsustainable.