The Recession is Here, Is a Depression in the Offing?
Is the "D" word in the offing?
I have been uncharacteristically plucky about the economy—until today. I have been looking at signs such as low oil (which has declined by $90 per barrel since the summer) lower-cost housing (as a result of the housing slump) and the marginal increase in the availability of credit this past month and thinking: "OK, when's the turnaround going to start?"
I earlier believed it would start in Q1 or Q2 of '09. Now I'm thinking it could be years.
The economic environment is morphing so quickly, it's difficult if not impossible to take in all the bad news. A month or more ago there was a looming U.S. recession, but not a worldwide recession. A month ago, many, many more Americans were employed. A month ago—OK, two months ago—consumers hadn't ground spending to a halt.
On the other hand, I've been waiting for the Bush recession to kick in ever since he drove up the federal deficit to record levels, launched a ridiculously expensive war for apparently no good reason, cut taxes and boosted domestic spending wantonly.
Now it's here. Since it came later than I anticipated, I guess I don't have to feel so poorly about it also being much bigger than expected.
Is the "D" word now looming—Depression? I fear so. One person might be feeling a bit relieved right now. I keep imagining Sen. John McCain may be feeling a bit better about his loss, knowing the economy won't be his to revive.
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Reader Comments
Deficit's not going anywhere
I agree that the deficit spending of the last 8 years has gone beyond its original justification of getting the economy rolling again after 2001, but it's a stretch to blame that on the recession. If you do want to blame the recession on that, though, you'll be mortified to know that the Democrats and The Messiah also plan on deficit spending for the forseable future. Given that The Messiah is omniscient, that means forever.
inally Made a Comeback.
Sunday, November 16, 2008
Iraqi Cabinet Approves Security Agreement With US
The Iraqi Cabinet approved a security pact with the United States today.
The agreement will keep US troops in Iraq until 2011.
The New York Times reported:
The Iraqi cabinet voted overwhelmingly Sunday to approve the security agreement that sets the conditions for the Americans' continued presence in Iraq from Jan. 1 until the end of 2011.
All but one of the 28 cabinet ministers who attended the two-and-a-half-hour session voted for the agreement and sent it to Parliament for consideration, a huge relief to the United States, which had been in intense negotiations with the Iraqis for nearly a year.
The United Nations Security Council resolution that allows U.S. troops to operate in Iraq expires Dec. 31, and, without an extension of the resolution or a separate agreement with the Iraqis like that approved by the cabinet on Sunday, forces of the U.S.-led coalition would have no legal mandate to operate.
“This is the best available alternative,” the Iraqi government spokesman, Ali al-Dabbagh, said shortly after the vote. “We have always said this is not a perfect solution for the Iraqi side and it is not a perfect solution for the American side. But it is a procedure which was forced by circumstances and necessity.
The followers of Shiite leader Muqtada al-Sadr called the pact meaningless.
Sharing my wealth already
Here is an idea. The Republicans of old had the right idea. Unfortunately the Republicans of new just did not get it.
To date my family has been taxed to the tune of $70,000. There is the federal income tax, state income tax and FICA. Compound this with a 9% sales tax, property tax, gas tax, etc…………………
So just reduce my taxes by $20,000 a year and I will be more than happy to "share the wealth" with my local businesses. If you want to help the economy than fix the FEDERAL GOVERNMENT. How much money is wasted on social programs which do nothing to fix the problem.
The jobs are out there. I can hardly find employees who are able to work a full 40 hours a week or can pass a drug test. Paying $18 dollars an hour to perform carpentry work with plenty of overtime. To be able to man my projects now I am forced to go out of the country.
1. Quit rewarding the "nonworking" public with free healthcare, etc.
2. Quit rewarding our career politicians
3. Quit bailing out folks/businesses for bad decisions.
4. Cut my taxes so that I have more disposable income to spend.
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