posted on Apr, 29 2009 @ 07:39 AM
Originally posted by pause4thought
"Consumer confidence gets a boost."
So does gullibility...
so true.....BUT ....remember they are trying to fool people into spending......if they can get people to BELIEVE that the economy is bottoming and
turing around they are more apt to spend and think they are secure in their job (which they want to).......and then this can actually cause the
economy to flatten it's dissent to a degree
there is a reason why the admin and MSM is spouting all this perception management and 2'nd half recovery hope........because to a degree wether it
is true or not......all they need is for people to believe it.....and it "works"........now how long can they keep this up?
depends what lenghts they will go
one thing they could do is have the fed buy stock (futures especially) this could give the illusion that the bottom "is in"......
the big problem for them will be showing why the employment rate doesn't go back down....... but even unemployment numbers are tainted ...it is
baked into the formulation
workers who were laid off 6-7-8 months ago.....that are still unempoyed begin to fall "out of the workforce" so they are no longer counted toward
unemployed.........this would cause a LARGER and larger discrepancy going forward in the U3 (official unemployed date) and the broader U 6
data.........unless of course they stop producing the U 6 number LOL
another thing they can't control (out side of financial companies) is bad corportate earnings going forward......their think tanks are currently
figuring out how to spin this to appease their advertisers and generate high ratings