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Blogs by Philip F Harris
Shark Infested Economic Waters 10/5/2008 4:53:54 AM
Just when you thought it was safe... Just when you thought it was safe to read the economic news you discovered that these troubled waters are still under threat by ravaging sharks. As President Bush signs what many economists say is a waste of money, an anathema to economic theory; the news from the Street is not encouraging. In case you were busy this weekend, here are some of the headlines and quotes you may have missed:
“…investors believe the package will only be a baby step in the long road to economic recovery.”
"At best, we can hope that it stems some of the more intense risk from the credit crisis.”
“Brace yourself. The credit squeeze that almost every financial expert has warned about is here.”
Economy sheds most jobs since 2003, more cuts seen
Payrolls drop by most in 5 years; more pain ahead
THE LATEST: Employers slashed 159,000 jobs in September, the most in more than five years and the ninth month in a row of nationwide job losses.
Factory orders drop by 4 percent in August
…the credit strains began to hit manufacturing with full force.
Jobless claims pushed to 7-year high
Durable goods orders drop 4.5 percent in August
Stocks end lower amid worries after House OKs plan
Sting in the tail on US bailout day
NEW YORK (AFP) - US stock markets fell sharply Friday after the Congress passed a huge financial rescue plan
SEC short-selling ban to expire Wednesday night
Congress passes bailout, focus shifts to fallout
Stocks drop on economic concerns despite bailout
…the $700 billion financial rescue package may not unblock credit markets and stave off a U.S. recession.
Even with Congress' unprecedented $700 billion financial bailout, the faltering economy and the jobs market probably will get worse
The signing of the Bailout Bill is the equivalent of Economic Appeasement that will ultimately be compared to that of Chamberlain and the Nazis at Munich. Driven by fear, innuendo and out right lies, the majority of American politicians appeased the Wall Street threats of economic collapse. Like Hitler who kept saying, “One more, that is all and then I will stop,” Congress and the President have allowed Wall Street more “Lebensraum,” living space. Making a fear based and not a reasoned based decision, politicians have allowed the money forces to launch their final assault on the consumer in their efforts to control the entire monetary system.
What is being said now? The above quotes and headlines tell it like it is. The economists say that the bailout will have little effect on the credit crunch. There will still be foreclosures. Jobs will still be lost. Hiring will come to a standstill. Things will get worse. Reports also now indicate that until housing prices start rising, the bailout will not end the credit crunch. Banks do not want to make loans for cheaper houses. Pardon my ignorance but if homes are cheaper, are they not more affordable for more people? The ‘greenbacks’ are still dripping with ink and the refrain is that the bailout is not enough. How could so many politicians ignore the proper decision making process? Why did they not have hearings? Why did they not consult a broader base of experts? We are not talking thousands of dollars, but hundreds of billions of dollars. Is that not cause enough to pause, take stock and properly evaluate the alternatives?
Finally, for the moment, we have this wonderful news story: “An American member of al-Qaida pointed to economic troubles in the United States as proof that "the enemies of Islam" face defeat…” Not too long ago I wrote an article asking if the American economy was under terrorist attack. My assumption was that foreign elements were manipulating markets to cause havoc for the West. What I should have guessed is that the terrorists are not abroad, they are within our very borders and their name is Wall Street.
