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Posts Tagged ‘economic stimulus’

Retail analyst: “Obama depression continues to explode”

July 11, 2011 Leave a comment

Even the dollar stores aren’t immune to the failures of Keynesianism on steroids, porkulus, Obamanomics and Decmocratic economic stewardship:

While the demand at stores like the 99-Cent Store or Dollar Tree is still relatively high, the biggest chains in the nation have fallen short of Wall Street’s expectations for several months, a trend that may prove even more ominous for the economy at large.

“I think what’s going on in those stores is that we are in a depression for 80 percent of Americans,” top retail analyst Howard Davidowitz told KNX 1070.

America’s three largest discount chains — Dollar General Corp., Family Dollar Stores Inc. and Dollar Tree Inc. —  all recently missed their quarterly earnings targets.

Davidowitz pointed to the weakness of the dollar and a gloomy consumer outlook as some of the factors behind the stores’ slump.
“In other words, the economy is continuing to be worse, the Obama depression continues to explode,” he added.

Here’s hoping Peggy Joseph was able to get her mortgage and gas money before the cash runs out.

Fed: Economy “decelerating”

September 9, 2010 Leave a comment

The Fed’s latest Beige Book report is out and shows an economic pulse that’s barely beating:

The U.S. economy continued growing this summer but “with widespread signs of deceleration,” according to a new report on business conditions around the country.

The Federal Reserve’s “beige book,” an eight-times-a-year compilation of anecdotal information from companies in the 12 Fed districts, offers a portrait of an uncertain economic moment in which growth has slowed in much of the United States.

“Economic growth at a modest pace was the most common characterization of overall conditions,” said the report, released Wednesday afternoon and based on interviews with businesspeople from mid-July through the end of August. However, five of the regional Fed banks east of the Mississippi River “highlighted mixed conditions or deceleration in overall economic activity.”

[…]

The anecdotal information contained in the beige book is consistent with a slew of economic reports showing that the burst of growth in late 2009 and early 2010 has not persisted through the summer, as the impact of businesses rebuilding their inventories and fiscal stimulus fades.

Therein lies the failure of Keynesian government spending used to stimulate demand.  It generally is a one-time shot in the arm and does little to promote sustainable long-term growth.

Existing home sales lowest since 1995

August 25, 2010 Leave a comment

Yikes:

Sales of previously owned U.S. homes took a record plunge in July to their slowest pace in 15 years, underlining the housing market’s struggle to find its footing without government aid.

Tuesday’s report from the National Association of Realtors, which was much worse than market expectations, was the latest data that indicated economic activity continued to slacken into the third quarter.

The NAR said overall sales were at their lowest since it started the existing-home sales data series in 1999, with single-family home sales that account for most business at their lowest since 1995. Association chief economist Lawrence Yun characterized overall sales as the softest since 1995.

The dismal sales report came as Chicago Federal Reserve President Charles Evans warned the risk of a double-dip recession was higher than six months ago. He doubted that output will actually shrink but said recovery will be modest.

“It is becoming abundantly clear that the housing market is undermining the already faltering wider economic recovery. With the increasingly inevitable double-dip in prices yet to come, things could yet get a lot worse,” said Paul Dales, a U.S. economist at Capital Economics in Toronto.

How bad was this report?  Very bad:

This is a really, really bad report. The awfulness of July’s sales were a little exaggerated due to all of the demand having been pulled forward form the buyer credit. But it’s unclear how many months of demand were captured early by the credit, so it’s hard to know when its effect will wear off.

Bah!  It’s all good.  Joe Biden, the Veep in charge of overseeing economic stimulus says we’re on the right track.

Of course the stimulus was a bust

June 8, 2010 Leave a comment

So much for the American Recovery and Reinvestment Act of 2009:

Last Friday’s Department of Labor jobs report, which showed private sector job creation fell by 190,000 between April and May of this year […]

In total the U.S. economy has now lost a net of 2.2 million jobs since President Barack Obama signed his stimulus bill, and his administration is now 7.2 million jobs short of what he promised his $862 billion stimulus would help create by 2010.

This morning on MSNBC, former Rep. Joe Scarborough (R-FL) pressed prominent Keynesian economist and director of the Earth Institute at Columbia University Jeffrey Sachs on whether it was too early to declare President Obama’s stimulus a failure. Scarborough had to ask the question twice, but Sachs finally relented: “It did fail.”

The one thing that sticks out in the early days of the Obama administration and its push for the stimulus bill was the focus on jobs.  Remember all the talk of “shovel ready” jobs that were part of public works projects that just needed that boost of Federal cash to get them off the ground?

Remember the Vice-President running around the country lying about the number of jobs “created or saved” on such-and-such project?

Meanwhile, the most glaring aspect of this bogus “recovery” is the lack of any job creation at all.   And they continue to lie about job creation and the “success” of the stimulus.

Smoke and mirrors, people.  Smoke and mirrors.

The Who’s Your Daddy stimulus plan

March 6, 2010 Leave a comment

In trying to help the struggling town of Moraine, Ohio, the Obama administration doesn’t bring incentives for job growth.  Instead it sends a political emissary reminding them simply: “Who’s your daddy?”

In the weeks between Barack Obama’s election and his inauguration, General Motors closed the last big factory in Moraine, a four-million-square-foot plant that churned out S.U.V.’s.

The president never sought to reopen the factory, even after the federal government became controlling shareholder in G.M. during the auto bailout. What he has done instead is try to ease some of the pain by sending an ambassador as a salve for the community’s wounds.

The ambassador, Edward B. Montgomery, executive director of the White House Council on Automotive Communities and Workers, has made 23 trips so far to troubled cities like Moraine. In lightning forays, he flies out of Washington in the morning, offers hope and aid, and returns to the capital in the evening. He concedes that he is not bringing jobs, but acting as a facilitator to help pummeled communities gain access to various government funds.

During that visit, he told a gathering of local and state officials, “there may be some nontraditional, untapped sources of federal funds that we can help you tap.” He travels with an entourage of a dozen top officers from federal agencies, each with money to offer and an explanation of how to tap the funds.

“We are a means of coordinating across the agencies,” Mr. Montgomery explained, “and improving access to funding.”

On his travels he has helped to channel millions of dollars from the stimulus package and other government pools. He does not know, he says, just how many millions. At many of the stops, particularly in Ohio, which went for George W. Bush in 2004 and just barely for Obama in the last presidential election, there is an implicit political message in this largess.

It goes something like this: Stick with the president and the Democratic Party, and while we cannot bring back mass production with its large-scale employment, we can help you in the transition to other sources of income and jobs.

The stimulus package has failed to generate jobs to most areas of the country, let alone those hardest hit like towns that are dependent on an American manufacturing sector that is fading fast. 

The administration is not providing the economic incentives required to revitalize the economy, namely across the board tax cuts for business.

Instead, they’re sending political bureaucrats whose only expertise is wading through the red tape necessary to tap Federal funds.  Funds which apparently, are being used to bribe for Democratic votes.