Obama's Economic Recovery, That Doesn't Exist

The economy is great! A new housing bubble is forming!

Subprime Bonds Are Back With Different Name Seven Years After U.S. Crisis

Hedge fund Seer Capital Management, money manager Angel Oak Capital and Sydney-based bank Macquarie Group Ltd. are among firms buying up loans to borrowers who can’t qualify for conventional mortgages because of issues such as low credit scores, foreclosures or hard-to-document income. They each plan to pool the mortgages into securities of varying risk and sell some to investors this year. JPMorgan Chase & Co. analysts predict as much as $5 billion of deals could get done, while Nomura Holdings Inc. forecasts $1 billion to $2 billion.

Oh, no wonder I've seen so many commercial projects coming in recently. The new subprime lending crisis but with different names!

U.S. job creation weak, even as unemployment rate falls to 4.7%

The U.S. economy only added 38,000 jobs in May, according to the Labor Department. It was the worst monthly job gain since 2010.

With the slowest jobs report and a drop in unemployment One has to wonder... how is that possible?

Another key factor -- the U.S. economy is considered to be at or near "full employment" and it's expected that hiring will slow down to a certain degree.

Is that so? I guess the labor force participation rate has gone up, especially when we take into account that the Millenial generation is much bigger than the Boomers right?

Not for good reasons. More Americans stopped looking for work and fell out of the workforce. That means they aren't counted in the labor force and that brings down the jobless rate. In recent months, more Americans had been coming back into the job market. Now the trend appears to be hitting a plateau.

Ahhhh, here we have the culprit. So not only are more Americans out of the real economy but there are even fewer jobs being create and a new housing bubble forming, great.

Record 94,708,000 Americans Not in Labor Force; Participation Rate Drops in May

A record 94,708,000 Americans were not in the labor force in May -- 664,000 more than in April -- and the labor force participation rate dropped two-tenths of a point to 62.6 percent, near its 38-year low, the Labor Department's Bureau of Labor Statistics reported on Friday.

When President Obama took office in January 2009, 80,529,000 Americans were not participating in the labor force; since then, 14,179,000 Americans have left the workforce

I think this may be the culprit of the growing civil unrest and may help explain the Trump and Bernie Sanders populace movements.

Don't Expect the Fed to Raise Interest Rates This Month

This is not a good report, and it may well give Fed officials second thoughts about increasing interest rates again this month or next, as some have suggested lately,” said Peter Ireland, an economics professor at Boston College.

And now the Fed isn't going to raise interests rates.. oh well! Hope you weren't expecting the value of your dollar to increase!

So what do you think people, back to transgender talk and tearing apart every word Trump says or do we want to get back to brass tax and start having provocative thoughtful discussions again, what I've come to love this place for so much in the past...??

a reply to: onequestion

Very, very valid observation that, i.e., back to bathroom wars as the economy sputters.

I'd take issue with one thing though. As much as I dislike Obama, this mess really isn't of his "making", its "making" has its roots in the Clinton/Bush era. Obama has exacerbated the problem by his inattention and lack of leadership, but he didn't cause the problem, IMHO.

And you're spot on correct, the labor participation rate, per a chart I saw on another web site, HAS NOT gone up, it did go up just a notch and then fell last month. Really, why work? Truth be told is that back in the day, the US fostered and nurtured a strong work ethic. Today, that's been jetisoned with the rest of the "values" Americans used to agree on. But the other side of that problem is that no one cares to work at a level beyond which they are eligible for benefits.

And, I think you're at least partially correct in that this crappy economy is at least part of the cause of the civil unrest. But I think there's other causes of the civil unrest as well.

a reply to: onequestion

You would have to be on welfare, have a government job, or be completely unaware of your surroundings to think the economy has improved the last 7 years.

Oh yeah, that is who the majority of the democrats are, no wonder they believe this line of total BS.

The nerve Obama has to even make the statement is shocking to me, I simply do not believe he thinks it is the truth. He does love to quote the phony unemployment rate, we are no better than a banana republic to continue to allow ourselves to be fed that phony statistic. The fact the media continues to report it as if it was meaningful tells you all you need to know about their value.

But the unemployment rate is 4.7% !!!!

What could be better ?



Obama's big "GOAL" is to get it below 4.4% because Bush had it down that far in 2006.

It's all about jealousy and envy.

a reply to: TonyS

Yes I agree this isn't of his making but lying about it isn't helping so either has is poorly advised, lying or just plain doesn't know.

a reply to: onequestion

Oh, no wonder I've seen so many commercial projects coming in recently. The new subprime lending crisis but with different names!

Thank goodness.
We will have new stores to sell us products made in other countries.
Talk about a real bubble.

a reply to: butcherguy

But, but we are selling American made products around the globe!

Oh wait...

At this point we are just glorified indentured slaves. Why make money and put it back when you can spend everything you have on # you don't need!

a reply to: onequestion

Well, I mean, think about it. What's Obama's experience, he was a "community organizer".

This comment may raise the ire of the mods for being off point, but..........because of Congressional grid lock, there really aren't any "political" solutions to the US economic problems. That's why this election is really rather pointless. So just about the only thing a person can do is try to fix their own economic situation.

My son's 30 and his solution has been to apprentice as an electrician. Robots won't be doing repair work anytime soon. But more important, he's figured out how to network his way through this economy. First, he moved out of the city; he's on the very furthest fringe of the city and near a good lake. He learned how to fish from a high school friend who introduced him to another guy that became a good friend who's an auto mechanic. 5 years ago, I gave my son a Toyota Tacoma pick-up; its now got 258,000 miles on it, meaning its about half used up. His mechanic buddy maintains it in exchange for my son doing weekend electrical work on cars and trucks once or twice a month. Another of his buddies does A/C work; sometimes he needs help and my son helps him out on the electrical issues. In exchange for that, my son's never got any A/C problems. I bought a 1/2 acre for my son and a very nice mobile home in a recreational type subdivision off the lake. My son works electrical issues with a guy who does the maintenance work around the subdivision which is mostly mobile homes and some lots are for hook ups for campers and such. In exchange for that, the guy does or teaches my son how to build decks and do routine maintenance on the mobile homes. (BTW, this is a pretty upscale type neighborhood and the residents are pretty particular........odd I know, but it has to do with the lake across the street).

My son also got married 3 years ago. His wife's a nurse; she also does mid-wife.
The list of his support network is now about 50 people or more long in all types of trades and services, including a couple of cops..............which is really important because he never met a ticket he couldn't get. I've never understood that problem.

It's a simple life but he's having a blast.

Get a trade......locate well, NETWORK!

There are a ton of indicators that the economy is on life support. Never mind the Bogus unemployment numbers. Never mind the immaterial Dow numbers. GDP is way below our historical numbers...WAY BELOW. Debt as a percentage of GDP is it's highest ever, and it ain't even close. The # of people on handout programs is far higher than ever before by millions of people. There is, and has been no economic recovery.

so basically half of the American work force is either unemployed or part time. Sounds like those shovel ready jobs never worked out.

originally posted by: avgguy
so basically half of the American work force is either unemployed or part time. Sounds like those shovel ready jobs never worked out.

Jobs advertised as shovel ready, are typical very temporary in nature. Most jobs are actually.

Hold on mate. I have for your consideration, two real world examples of economic recovery.

A. I run a business that is not a necessity. Ergo it is is not HVAC or food related or medical or any of that. People only give me their business IF they have disposable income, and disposable income only comes to people when the economy is good. Business is very good for me right now and getting better. My business is located in a lower middle class level, lot's of renters etc. Again, business is good. In a false economic recovery, business would be bad, yes?

B. When I was in Oregon I worked in education and when the recession hit hardest, right before Obama took office, school funding took a huge hit. Because Oregon Schools get their funding from Income tax revenue. Income tax revenue= employment. When Obama took office and things turned around income tax revenue went up and school funding went up.

Not saying things are great, but You can't just say it's a false recovery or a fake recovery. Otherwise A and B would be false and with my own two eyes and bank account, I can see that A and B are true.