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Sunday, September 6, 2009

The Recession Has Ended?

I've been hearing news reports stating that economists believe that the recession is over, but predict the jobless rate will keep rising until at least next summer as the country struggles to mount a sustained recovery. That has got to be the dumbest shit I've heard.

First of all, you got millions of people losing their jobs. Second, you got thousands of foreclosed homes going to auctions for pennies on the dollar of their original values because these people have lost their jobs and can't find new ones; Third, you've got politicians including our "magic negro" Barack Obama making dumb claims such as "the economy is getting better as a result of my spending on 6% of the economic stimulus package" or "the housing market is recovering due to the rise in the average home sales price and the volume of homes being sold." Its utter bullshit!

They feed this shit to the public and the public continues to believe it, despite MILLIONS of people losing their jobs. Home prices have risen for two reasons: 1) $8,000 credit that the US Federal Govt. is giving to homebuyers/investors who buy houses in target areas (can we say inner-city or low income areas); 2) Home prices have hit a floor for the past 18 months or so and the investors and first time homeowners are buying properties at bargain prices. Homes are still being foreclosed on or being sold at ridiculous losses. Home sales in the middle to high end market are still shit. If a house cost more than $150,000 right now, its not going to sell for months. If you don't believe me, ask the homeowners in their $300K houses who are saying that they can't sell their properties because their neighbors' foreclosed homes are selling for half their value. Yet President Obama and the news media wants us to believe that the recession has ended.

Then there were a few months were a decline in job losses was actually being celebrated. A declined from 700k to 520k in the current month's job losses is nothing to celebrate, nor is it a sign of economic recovery. That's 500k more people whose economic power has significantly declined due to the fact that they lost their jobs. What about the millions of people who lost their jobs the previous 7 months of this year who haven't found jobs? That certainly cannot help GDP which hasn't kept pace with the average salaries of US workers in over 25 years.

U.S. GDP has fallen for four straight quarters for the first time since government records started in 1947. Yet the pundits will tell you that the economy is starting to get better because the stock market is rallying. I may not be an economic expert, but the stock market is glorified gambling for many day traders. The stock market is not the best barometer of how the economy is doing or how its going to do in the days to come. GDP is the best way to measure the economy because it measures the volume of goods that everyone in the United States are buying. GDP is falling and is forcasted to continue to fall because of many factors such as job loss, people's unemployment benefits running out, slow job market, declining business, and low wages.

Although the prices of goods and services has risen for the past 25+ years, the average salary of US workers has not kept up with GDP because the rich people/companies/corporation who benefitted from a grow GDP (growing profits) didn't not reinvest their profits into their employees by giving higher wage increases and hiring more people at higher salaries. Why? Because the days of being able to walk out of one job into another have been long gone and the job market has been hyper competitive many years before the Bush (Dubya) administration thanks to Carter, Reagan, and Clinton signing legislature to contract out government jobs and outsource industrial jobs which buttered the bread of the majority of the middle class.

Let's not forget that the same banking industry who has turned our economy upside down were the ones who were rewarded with bailouts from Bush and Obama while millions of Americans have not received a bailout package as they continue to deplete food pantries all over the country. Let's not forget that the Obama administration and Congress has not drafted legislation to put regulations on the banking industry to make sure that this won't happen again. Instead, the banks who were already too big to fail have gotten even BIGGER and Obama and Congress has not moved on this. The banking industry is just as unregulated as it was last year when Bush grabbed his nuts and told America that the bailout better be passed. Personally, I respect the fact that Dubya got brass balls to ruin this country and then make demands at the same time, but that's another blog for another day.

I would like to see the day when people will no longer tolerate the hot air that the media and these politicians are blowing up our asses and demand real change that will lead to real progress. Like one of my coworkers had said, I'm surprised that this country hasn't had a revolution yet.

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