Fed Says Recession Over - Are You Laughing Too?

I guess they think if they say something enough times it will come true?

Fed Says Worst of Recession is Over

The Federal Reserve has suggested that the worst of the US recession is over.
It said that while "economic activity is likely to remain weak for a time", it had begun to "level off".

So many factors point to this being the eye of the hurricane for the financial crisis, the Greater Depression we are living through.

Feel free to add your own but here are a few. Alt-a ARM mortgages from 2004-2005 are going to start resetting this fall. That will knock a bunch of folks out of their houses when their $1400 a month payment for their $500k McMansion increases to $2200 or more.

Retail sales fell in July. Job losses are continuing, despite fed.govs attempts to cook the books by not counting those who have run out of benefits (they still don't have jobs).
July Retail Sales Down, Job Losses Up


Wages are down, raises are non-existent.

There are thousands of foreclosed properties around the country that banks are keeping off the market and hence keeping the bad debt off their books. Hence residential and commercial real estate inventories are being suppressed. There should actually be many more homes on the market, and not selling...

The Fed appears to be buying its own t-bills as China and Japan aren't.

There are the billions of Federal Reserve Notes that are stuck in the banks as they use the stimulus money to cover their own a$$3s rather than free up the credit market as they were "supposed" to do (yeah right). When this cash finally hits the money supply it will most likely cause hyperinflation.

Commercial real estate is about to tank, hard.

Credit card debt defaults are really kicking in.

The stock market rally is nonsense, being largely driven by banks pump and dump. For example, take their stimulus money and write down their bad debt. Then, appearing "profitable" since that debt disappeared into fiat dollars, the banks could issue new stock options further boosting their profit.

Feel free to add other factors. I say the Fed is playing the propaganda game and we've are just now heading over the economic cliff rather then reaching the end of an ugly ride.

I see this all as part of the plot to destroy both the dollar and US sovereignty to make globalization more easily achieved.

i feel the same way... the system is a joke and the media is just adding fuel to the fire.
Retail sales in U.S unexpectedly fall...
All I know is that myself and hundreds of ATSers were expecting a fall in retail sales.


[edit on 13-8-2009 by ddacunha]

Here's an article about the Fed buying Treasuries debt.

The Federal Reserve Bank of New York bought $6.594 billion in Treasurys on Monday, the first of two operations this week.

Fed Buys $6.6 Billion in T Bills

Okay so Treasury needs cash. Treasury gave up ability to mint money to the Fed. Fed is off the gold standard and is running a printing press. They print the fiat dollars and sell them to Treasury at interest. Treasury then auctions the fiat dollars in the form of Tbills. Fed buys the tbills back and makes interest on the money they printed and then bought themselves.

It's like a consumer getting a new credit card every month and moving all their existing debt onto the new card (while still accruing more debt) in a shell game that ends in bankruptcy, unless you own the money printing machine.

I really need one of those "Federal" Reserve printing presses...

I'm so glad the recession is over.... here's some more good news:
U.S home foreclosure set another record for the month of July

Foreclosure activity jumped 7 percent in July from June and 32 percent from a year earlier as one in every 355 households with a loan got a foreclosure filing, RealtyTrac said on Thursday.

"And I thought my jokes were bad"
-Joker, The Dark Knight or was it Obama?

Toxic real estate debt...

Dr. Housing Bubble

Make no mistake, we are going to hit another wave of pain. The commercial real estate market with $3 trillion in debt has some of the most toxic debt in the world. Empty strip malls, vacant medical offices, and parking lots with no cars. We have barely scratched the surface in this market.

The average subprime loan balance is $180,000. There are some 2.4 million loans in the U.S. that carry the proud subprime label. The large majority of these loans have as much likelihood as making it a few more years as city sewage turning into gold.

Modification don’t seem to be working with these particularly noxious loans. In the face rising payments, borrowers don’t have an incentive to keep up with their current payments for homes that are already so horrendously under water, i.e. the loan amount is far above the current value of the property. Bordia says that many of the option ARM loans that do get modified turn delinquent soon after anyway. They’ve crunched some numbers and forecast that 95% of the loans that are slated for modification will eventually default. If you think that sounds bad, get this: They say that 80% of the option ARM loans out there that are ok and up-to-date as of right now will eventually default, too.”

I am laughing, well its more like weeping... but you cant tell the difference these days.

Anyone seen the foreclosure numbers? Yeah, FED is lying through their teeth.

Billions in Bad Loans Still Threaten US Banks

Despite signs that the financial system has stabilized, banks remain threatened by billions of dollars of bad loans on their balance sheets, and more could fail if the economy worsens, a congressional watchdog reports.

In its latest assessment of the $700 billion financial system bailout, the Congressional Oversight Panel warns that banks still hold many risky loans of uncertain value. If unemployment rises sharply or the commercial real estate market collapses -- as many economists fear -- the banking system could again lose its footing, the panel says in a report to be released Tuesday.

"The financial system (remains) vulnerable to the crisis conditions that (the bailout) was meant to fix," the panel wrote in a draft copy of Tuesday's report.

I think a lot of people who watch even the MSM are wising up and calling these people's bluffs now. Here's an article from yesterday over at Fox, and the article isn't what really interested me since I think Bernanke is a complete joke, but the comments section on this article is what really made me laugh. Nobody who read that article bought that the recession is over just because some economist told them so. It actually makes me happy to see people not believing everything they hear on "respected" news websites/stations.

Report: Economists Say Recession Over, Want Bernanke to Stay

Hmmmm... that's strange. Still alot of empty stores around here and commercial lots for sale. More seem to be going out of business too.

Who does the Fed think they are fooling?

reply to post by Sirius20


Here is a great quote from Bernanke that I dug out of those comments.

July 25, 2007 ”US Federal Reserve Chairman Ben Bernanke said last week that he expected “significant financial losses” from failed sub-prime real estate loans but only a limited effect on the economy.”

reply to post by merkaba93


They said it was leveling out.

They were telling the truth.

It is flat lining.

Yeah I am laughing SEE!

I am laughing because my husbands fellow workers are getting ready to strike and walk out of work. WHY you ask?

WELL first his employers had to cut the workers wages by up to 15% (about 95% of the work force got that cut). They just aren't making enough money anymore.

NOW they are saying they are going to have to take yet another 15% (total of 30% loss in wages now mind you) to help cover the cost of the insurance they have to pay for through the union. (which stinks by the way and the coverage is sub par by any standard. we could get better at a free clinic)

YEAH I AM LAUGHING! But later today when I have to pay the eletric bill I am sure I WILL be CRYING and broke yet again!

Forgot to add:
That the wage cuts are in effect when they are actually WORKING. Being they have been laid off an average of two weeks a month. Because the company that has been in business for over 100 years is going broke!

[edit on 13-8-2009 by xoxo stacie]