Empirical Proof:Obama Stimulus = Fail

You know I am beginning to think that every economist on TV is living in fantasy world...

Enjoy the show people.

Remember we had a graph trotted out with Obama's economic team when they proposed their "stimulus", and projected unemployment (and GDP!) with and without their stimulus?

Well, another blogger has plotted that first graph against actual results.

Keep in mind - the stimulus passed, of course.

Here's the graph:
[atsimg]http://files.abovetopsecret.com/images/member/7e918ff319c4.gif[/atsimg]

Mmmm sexy isnt it? Just looks like another slap in the face! I do hope this gets on the news. Let's continue onto what it really means...

You were sold the stock market when that "stimulus" plan was announced. You were sold specific projections on unemployment, which of course tie directly to the economy and its health.

Employment is, in fact, everything. It is payments on credit cards, it is payments on mortgages, it is ability to buy a new house, it is the ability to buy a car, pay for your iPhone and so on.

Without employment - sustainable, high-quality, high-paying employment that provides at least a solid middle-class wage, there is no economic stability, say much less economic growth.

Period.

I couldnt have put it better myself. Honestly what is wrong with the world and the news?! Oh my, he even gave that an answer for you...

Goldman Sachs and other 'analysts' who have been raising earnings estimates and projecting "the end of the recession."

Big banks who have had a lot of new stock to sell into the market so they can avoid being shut down by the government as a consequence of being bankrupt.

CNBC, owned and operated by GE - who is rather interested in you buying a new refrigerator or washer - made by them, of course.

How many of those fine folks who want to sell something to you have bothered to mention the facts against the entire premise upon which they claim that the market is a good value here and that you should buy stocks have bothered to show you the above chart?

To compare projected results upon which their recommendations are based against actual results in the economy?

Just one more question: What do you think earnings, that is, profits, and thus stock prices, will look like when one adjusts those expectations for the actual unemployment rate as opposed to the "projections" against which all those "strong buy" recommendations were made?

If this doesnt prove to you that you are being lied to on a daily basis I am going to come through this computer screen and slap you in the face.

All quotes brought to you by the awesome Market Ticker and Karl Denninger

Edit: pfft, my grammar is bad today.

[edit on 6/9/2009 by Tentickles]

Mod Edit: All Caps Title.

[edit on 9/6/2009 by Mirthful Me]

So far the main ones that have benefited from the stimulus package is big business and stock holders who have manipulated the hype to their advantage to make money.

Jobs are still leaving the country.

The unemployment rate was going to rise regardless of the stimulus package passing or not.

It's unstoppable.

Repeal Nafta...that's a good first step!

Obama has backed off that deal.

President for the people my ass.

The problem is that most people believe the news, and they think that the news has no reason to lie to them.

Sad but true.

Originally posted by David9176
Repeal Nafta...that's a good first step!

Why? It's been working for the US for over 20 years.

Btw, I've been doing some reading on this and economists say that it's going to take about a year for stimulus money to be effective.

reply to post by intrepid

Why? It's been working for the US for over 20 years

Are you for real? We don't make anything here anymore. All of the money we spend leaves the country and companies keep exporting their jobs to other countries for cheaper labor.

I know as I lost mine to Mexico 2 years ago for that exact reason.

If US companies cannot compete....then those that are still here will leave.

Nafta is part of the problem of this whole mess.

Tariffs need to be raised to give american companies a chance to be competitive...if not jobs will continue to leave...and we will continue our place of being the largest debtors in the world.

Things have to change. You have to produce your way out of a recession. we aren't producing anything.

reply to post by David9176


I could not agree with you more! I have seen my area go from a very nice place to live where anyone could find good work with a high school diploma to a place that even degrees don't help with employment. WE don't make anything anymore. Xerox, Case Hoyt, Kodak, Delphi, Rochester Products, all major employers either gone or so shaved down that there are no jobs.

If we don't make things then what do we have to sell? We have a very large nation with people of all skill levels. There are plenty of people that just are not college material and now these people instead of getting good solid manufacturing jobs are working in retail and fast food. This is no good and must change.

Speaking of change, NAFTA just one more of the lies of Obama.

reply to post by David9176


Thus protectionism will not work. Unless you're OK with MUCH less oil, water and electricity. To name a few. Quid pro quo friend.

reply to post by intrepid


That's energy. That's not productive and we need to start producing far more energy ourselves which can be done..but isn't.

You just brought up a whole new host of problems t hat need to be fixed but nothing is ever done about it.

Instead we continue to ignore our problems and let things get worse while everything spirals out of control.

If this is protectionism...then so be it.



[edit on 9-6-2009 by David9176]

Originally posted by intrepid

Originally posted by David9176
Repeal Nafta...that's a good first step!

Why? It's been working for the US for over 20 years.

Btw, I've been doing some reading on this and economists say that it's going to take about a year for stimulus money to be effective.

Just in time for the 2010 elections. Coincidence? Nope.

reply to post by intrepid


If I had control, I would get rid of the income tax and switch to a VAT. Then watch the businesses come flooding into the US. To solve energy problems actually build some nuclear power plants.

Drill for our own oil and kill the oil market. The US already has oil platforms in the Gulf that have already tapped oil the government just wont let them pump it. If they really want to cry about protectionism just put insanely high tariffs on their imports and see how they like that.

But our politicians want a globalist society so none of that will happen.

reply to post by jjkenobi


By the rate things are deteriorating it won't matter at that point. They are throwing around PAYGO now too, which is essentially higher taxes.

They could have stopped the deterioration of the economy if they would have let the companies fail, but they can't throw their mega money campaign donors out to the wolves now can they.

Originally posted by David9176
reply to post by intrepid

 

Why? It's been working for the US for over 20 years

Are you for real? We don't make anything here anymore. All of the money we spend leaves the country and companies keep exporting their jobs to other countries for cheaper labor.

I know as I lost mine to Mexico 2 years ago for that exact reason.

If US companies cannot compete....then those that are still here will leave.

Nafta is part of the problem of this whole mess.

You are right about this. Back in the late 80’s my mother started a business. It was a garment factory that produced sweat pants, shirts, dresses, you name we made. Prior to that, she spent 20 years or so in the industry working to make others rich. The garment industry was very big here in Eastern Pennsylvania at that time and was so for decades. We even had silk mills that produced the silk, silk thread, and silk fabric. Within 3 months of NAFTA being signed into effect my mothers business collapsed as her suppliers (EJ Gitano, BUM, Levi’s, and several others) packed up and moved south of the border. This left hundreds if not thousands of people without job and with no other industry in the area the towns began to dry up. The tax revenue that was lost from those businesses no longer being here put the local towns in financial shock. They could no longer pay their bills. The result was that they raised taxes to compensate which pushed many people off the financial edge. People began leaving the local towns because they could not afford the taxes combined with the lack of good paying jobs. The towns have simply dried up.

So, for anybody that says that NAFTA has been working for us for the past 20 years, you are ignorant and uneducated!

Originally posted by Hastobemoretolife
reply to post by jjkenobi

 

By the rate things are deteriorating it won't matter at that point. They are throwing around PAYGO now too, which is essentially higher taxes.

They could have stopped the deterioration of the economy if they would have let the companies fail, but they can't throw their mega money campaign donors out to the wolves now can they.

You are right. If they had let the companies fail it would better. For the people anyway.

They have gotten themselves into an infinite loop of bailout because of their actions.

Dont understand go look up the 1990 crash of the Nikkei...