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Yeah, its doing so great because everyone is employed and spending because of all the new jobs we've created.
Well, like a typical wingnut you can't seem to seem to see anything in other than black and white ("if the economy is not booming then it must be awful") when the fact is, the economy is NEITHER of those things. It's somewhere in-between. The economy has created LOTS and LOTS of new jobs (especially lately) - on a par with some of the "good years" (ie before the 2007 recession began) under Bush. The main issue is that the hole dug in 2007-2009 was incredibly deep so there was a HUGE backlog of laid-off workers. This has resulted in a higher UE rate for an extended period of time. That elevated UE rate has meant there has been multiple applicates per job opening so employers haven't had to boost wages much to attract workers. Now that the UE rate is coming down to more normal levels, that is likely to change and employers will find that there will be more competition for good workers (as mentioned, it's ALREADY starting to happen in a few industries) - which will result in a long-delayed boost in wages.
It's all about supply and demand.
I though you Rightwing types were supposed to understand that kind of stuff.
Apparently not.
Well, like a typical wingnut you can't seem to seem to see anything in other than black and white ("if the economy is not booming then it must be awful") when the fact is, the economy is NEITHER of those things. It's somewhere in-between. The economy has created LOTS and LOTS of new jobs (especially lately) - on a par with some of the "good years" (ie before the 2007 recession began) under Bush. The main issue is that the hole dug in 2007-2009 was incredibly deep so there was a HUGE backlog of laid-off workers. This has resulted in a higher UE rate for an extended period of time. That elevated UE rate has meant there has been multiple applicates per job opening so employers haven't had to boost wages much to attract workers. Now that the UE rate is coming down to more normal levels, that is likely to change and employers will find that there will be more competition for good workers (as mentioned, it's ALREADY starting to happen in a few industries) - which will result in a long-delayed boost in wages.
It's all about supply and demand.
I though you Rightwing types were supposed to understand that kind of stuff.
Apparently not.
Ken
I'm a wingnut when you admit that the only sector booming is wall street and I point that out.
For years now, the wingnuts have been telling us how it was just the administrations' QE propping up the stock market - that the recovery of the stock market was just an illusion, that US companies were not doing well enough to justify the higher stock prices, and that once QE ended stocks would crash back to where they were 5 years ago because "the economy was not recovering".
Well, the Fed announced today that they were starting scale back QE in January - and, the stock market shot up - ending the day in record territory with the DOW up nearly 300 points, the S&P up nearly 30 points and the NASDAQ up nearly 50 points.
Oppps!
Gold, on the other hand got clobbered - as I said it would.
Hmmmm.... could it be that all the nonsense about the stock market simply being propped up by QE was just that - nonsense?
Yup.
Ken
There were several instances of Goldman Sachs and the other Wall Street trading operations driving down the stock market when Bernanke hinted that it was time for the QE program to end. You could look it up. Why did it happen? Because Goldman in particular, but Wall Street in general benefited greatly from the QE program.
So yeah, QE was propping up the market, enabling the Wall Street trading desks to book ever growing profits on the back of QE.
Over the past couple of years, the general consensus has changed regarding the prospects of the economy. The phonied up government assessments of inflation (the CPI excludes food and energy, dont you know) says there is no sign of inflation on the horizon. Gold is a scam. (Ask anyone who bought and held within the past couple of years, then listen to the current wave of gold purchase advertising) so the Wall Street traders are working to extract the last profits they can. You can bet that their positions are sufficiently hedged, and that their computers are ready to sell at the drop of a hat.
Sorry, but the Big Boys have the distinct advantage over most of us. All we can do is hope that the managers of those mutual funds that we own have the same kinds of smarts that Goldman's traders have.
.
Last edited by chuckmann; 05-25-2014 at 10:56 AM..
Again, what's your point?
The wingnuts and goldbugs were DEAD WRONG about the affects of QE - just as they were DEAD WRONG that the economy is not recovering.
Ken
Name some names. When you say "wingnuts" who specifically are you talking about?
Reality is what reality is.
The economy IS recovering and WILL continue to do so - regardless of what folks like your think or expect.
You folks have gone from "the economy will not recover" to "they are faking the evidence that the economy is recovering" - but NONE of that affects anything at all. Despite your denials, recovery continues. QE tapering is about to being and it will be pared down over time until it is gone completely - and the economy will simply continue it's admittedly slow, but steady healing process.
Ken
Well, anyone who follows the markets based on fact and historical interpretation, knows two things. 1) the economy has been recovering steadily since 2009 (Q2 IIRC but I could be wrong) and 2) the Obama recovery has been the weakest in the post WW2 era, growing at a measly 1.9% as opposed to the 4% or so that is the historical norm. So the Obama "recovery" is nothing to write home about.
In fairness, I would say that there are a number of structural things going on that Obama cannot control. Growing automation of manufacturing processes, growing internet commerce, growing fobbing off of administrative services and related costs onto the consumer, the exporting of labor to China and other offshore locations. A examples.
I share some of your issues with "the wingnuts" who think that their "free market capitalism" religion is the solution to all problems. But I also think that your liberal left condemnations of "wingnuts" is narrow minded at best.
I share some of your issues with "the wingnuts" who think that their "free market capitalism" religion is the solution to all problems. But I also think that your liberal left condemnations of "wingnuts" is narrow minded at best.
.
I get called out as a wingnut even though I do not believe in "free market capitalism" as a theory.
If there is inflation what sector will absorb it?
From the later 90's to 2007 it was housing that absorbed the lions share and a good portion of Americans their credit is shot. So where will that inflation go? if you agree there will be inflation. If you do not ,why?
Well, like a typical wingnut you can't seem to seem to see anything in other than black and white ("if the economy is not booming then it must be awful") when the fact is, the economy is NEITHER of those things. It's somewhere in-between. The economy has created LOTS and LOTS of new jobs (especially lately) - on a par with some of the "good years" (ie before the 2007 recession began) under Bush. The main issue is that the hole dug in 2007-2009 was incredibly deep so there was a HUGE backlog of laid-off workers. This has resulted in a higher UE rate for an extended period of time. That elevated UE rate has meant there has been multiple applicates per job opening so employers haven't had to boost wages much to attract workers. Now that the UE rate is coming down to more normal levels, that is likely to change and employers will find that there will be more competition for good workers (as mentioned, it's ALREADY starting to happen in a few industries) - which will result in a long-delayed boost in wages.
It's all about supply and demand.
I though you Rightwing types were supposed to understand that kind of stuff.
Apparently not.
Ken
I can argue the problem is the type of jobs being created compared to those lost. Jobs created since the recession have been at lower pay rates than those the economy lost in the recession. This goes into part of why people say the economy is worse off now rather than being "good news."
Wall street DIDN'T BENEFIT from QE (at least not in any major, direct, measurable way). The QE purchases went into HOUSING MORTGAGES. There was NO stock purchases AT ALL - NONE, NADA, ZIP.
ROTFLMAO
You have got to be kidding.
Even Brinker says otherwise!!!!!!!!!
Talk about your Wall Street shills!
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