Recovery? Think Again..and again..and..

Most of you are well aware that we're in for more economic troubles in the very near future, but this article pretty much sinks any hope you may have been harboring that recovery is just around the corner...Please, for those of you with your heads in the sand, please read and digest..The more people who are prepared, the better off we all are in the long run..

Source

The winds of hope and change swept our financial markets this week. The ‘green shoots’ were supposedly growing everywhere, I even saw one sprout up on Kudlow’s eyebrow. Alas it was just a booger as the reality of our economic conditions met the expectations and concerns of everyone around the world.

Somebody dropped a Hercules full of paraquat on Bernanke’s green shoots.

If you don't appreciate John Galt's humor, he gets a little more serious here:

Don’t smoke the shoots boys and girls as America is about to witness the consequences of using scotch tape to patch a severed leg. It does not work. You can not ask the idiots who helped design this mess to repair it. That is why the consequences of designing and implementing the TARP, TALF and other government programs has not been measured nor anticipated. That is why the impact of the idea of a pre-designed bankruptcy of Chrysler and apparently soon General Motors has not been taken into account. When the disaster that strikes over the next 30 days the follow up disaster had best be prevented once and for all or the risk of a complete collapse of our economic and political system could occur. The Fed, Treasury and Obama administration get one shot and one shot only. A miscalculation could be a disaster from which the “West” as we know it will never recover in our lifetimes.

Please disseminate this to all the ostriches that you know and love....he goes on to show us raw economic charts....and they will astound you if your only source of economic news comes from CNBC or the rest of the bubblevision talking heads...

Ouch...this chart is really, REALLY tough to look at:

Yes, you’re reading that correctly; earnings adjusted for inflation are below 1937 levels. Anyone care to take a quick trip back into memory lane and remember that period being known as the “other shoe” which dropped and killed the American spirit until the war began? It was that bad then and it will be that bad here and now before you can say “Rooseveltian” or worse.

The US automotive industry was one of the few Manufacturing sectors left on US soil. It seems almost everything else has been outsourced to South America and Asia.

Neither Obama nor Bush had any intention of saving or fixing an industry that actually makes something in the United States.

Bush and his anti-union minions wanted to crush the unions, and to do that they were prepared to let Chrysler and GM fail.

Obama, and his pro-union communist minions, are doing everything they can to save the Unions and as a consequence, they are selling the automotive industry to Europe for nothing and giving the corporations to the UAW.

Problem is that neither actually cares about the economy or the people who actually work for these companies.

Now that Chrysler and GM are in (or about to be in) bankrutcy, all bets are off. There will be massive job losses as a consequence of these latest failures, and those green shoots will whilt faster than grass in a drought.

reply to post by RolandBrichter


That chart is the most frightening thing I has seen since Saw IV.

Insert second line here

Originally posted by finemanm

Obama, and his pro-union communist minions, are doing everything they can to save the Unions and as a consequence, they are selling the automotive industry to Europe for nothing and giving the corporations to the UAW.

Let's not forget about good 'ole China...I have a friend in GM upper management who has been in China now for 5 years...he's very vague when I try to pin him down on why he's there....

Originally posted by finemanm
The US automotive industry was one of the few Manufacturing sectors left on US soil. It seems almost everything else has been outsourced to South America and Asia.

Yup - america doesn't actually produce much of anything anymore. We are a nation of lawyers and bankers and entertainers and athletes. Useless non-productive parasites.

What I find frightening is the fact that there are States within our Union that are in such bad shape they can not do anything at the moment. Take California for example.


California risks "insolvency" amid budget woes: government

SACRAMENTO, California (Reuters) - California Gov. Arnold Schwarzenegger said on Thursday the state "faces insolvency within weeks" and he will put new policies on hold until there is a deal to close the budget gap, which will top $40 billion over the current and next fiscal year.

"It doesn't make any sense to talk about education, infrastructure, water, health care reform and all these things when we have this huge budget deficit," Schwarzenegger said in his annual state of the state speech.

The Republican governor and Democrat-led legislature are at adds over how to fill the current year's budget shortfall and are poised for a struggle to balance the budget for the state's next fiscal year, which begins in July.

"The reality is that our state is incapacitated until we resolve the budget crisis," Schwarzenegger said.

"The truth is that California is in a state of emergency," he added. "Addressing this emergency is the first and greatest thing we must do for the people. The $42 billion deficit is a rock upon our chest and we cannot breathe until we get it off."

Schwarzenegger's speech stood in sharp contrast to his previous state of the state addresses. It was short, blunt and focused on the urgent task of balancing the state's books.

Reuters

They will bailout a bank but they can not and will not help a State of the United States.

Edit: There's a thread on ATS if you feel like reading it. ATS Thread

[edit on 5/17/2009 by Tentickles]

reply to post by Tentickles



Posted a similar thread regarding California...

www.abovetopsecret.com...

It's my contention that the events in Ca will soon be coming to a theater near you...

Originally posted by RolandBrichter
Ouch...this chart is really, REALLY tough to look at:

Earnings tripled in less than 5 years. That is unsustainable, not to mention, questionable. The post 9-11 cycle was almost like an orchestrated recovery.

reply to post by titian



Yup, and this rediculous short squeeze is kept rolling along it's merry way....Hello bond dislocation

reply to post by RolandBrichter


I can only laugh. Instead of focusing on all the doom and gloom you should be focusing on what those charts really tell you. We have hit bottom! Every valley on those charts represents a big turn in the economy. Since this dip is the largest (or so he says) then the ensuing recovery should also be the largest.

Also note how much higher our manufacturing base and productivity relative to historical norms even after accounting for the dips the past few years.

Don't let the doom and gloom keep you from benefiting from the largest recovery in our history.

great article, thanks for posting

they've managed to lull people into a false sense of security but we all know the joyride is going to crash and burn

Originally posted by disgustedbyhumanity
reply to post by RolandBrichter

 

I can only laugh. Instead of focusing on all the doom and gloom you should be focusing on what those charts really tell you. We have hit bottom! Every valley on those charts represents a big turn in the economy. Since this dip is the largest (or so he says) then the ensuing recovery should also be the largest.

Also note how much higher our manufacturing base and productivity relative to historical norms even after accounting for the dips the past few years.

Don't let the doom and gloom keep you from benefiting from the largest recovery in our history.

No chance....absolutely NO chance that we are anywhere near a bottom

WHERE is the recovery going to come from???? What sector is poised to lead us out??? Banking?(oh please) Construction? Tech? Consumers??? As you probably know, 70% of our GDP is from personal consumption...which was largely propped up by DEBT....No, I'm afraid you're in for a little surprise, as your economic Titanic hasn't even hit the iceberg yet

BTW, I don't look at this as "gloom and doom"..reality can sometimes suck ...and it's always prudent to prepare for high percentage crash possibilities (and even prosper) ..

Part of me thinks you must be half kidding, and you're just drawing me out for sport, and I really hope for your sake, that is the case...If not, PLEASE take a closer look at where you get your information from...you're being grossly misled