
It’s almost a foregone conclusion that the second scoop of the double dip is coming.
Some snapshots to add to the glorious economic mosaic that is Obamanomics.
EXCLUSIVE: Outlook Gloomy at Secret Billionaire Meeting
For 25 years, legendary Wall Street strategist Byron Wien, now with The Blackstone Group, has held summer meetings with high net worth individuals to get their outlook on the global economy and investing. This year’s group, totaling fifty individuals and including more than 10 billionaires, was decidedly pessimistic on the U.S. economy, investment opportunities and the Obama administration.
“They saw the United States in a long-term slow growth environment with the near-term risk of recession quite real,” said Wien, in a commentary to Blackstone clients. “The Obama administration was viewed as hostile to business and that discouraged both hiring and investment. Companies and entrepreneurs were reluctant to add workers because they didn’t know what their healthcare costs or taxes were going to be.”
When you’ve lost George Soros–oh wait, unless he’s shorting the dollar.
George Will brings tidings of Cash for Clunkers–among other things.
Americans have good reason not to believe in Obamanomics
Does this increase anyone’s confidence? About as much as noting the one-year anniversary of the end of another of the administration’s brainstorms.
The used-car market is an important mechanism for redistributing wealth to low-income persons: The price of a car drops when it is driven out of the dealership, but much of its transportation value remains when it enters the used-car market. Unfortunately for low-income people, the average price of a three-year-old automobile has increased more than 10 percent since last summer. This is largely because the Car Allowance Rebate System, aka “Cash for Clunkers,” which ended in August 2009, cut the supply of used cars.
Cash for Clunkers provided up to $4,500 to persons who traded in a car in order to purchase a new car with better gas mileage, but it stipulated that the used car had to be scrapped. The Boston Globe’s Jeff Jacoby reports that a study by Edmunds.com shows that all but 125,000 of the 700,000 cars sold during the clunkers program would have been bought even if no subsidy had been available. If this is so, each incremental sale cost taxpayers $24,000.
Don’t know if this has anything to do with the subject matter of this post, but just in case, Regulators Back New Bank Rules to Avert Crises:
BASEL, Switzerland — The world’s top bank regulators agreed Sunday on far-reaching new rules intended to make the global banking industry safer and protect international economies from future financial disasters.
The new requirements will more than triple the amount of capital that banks must hold in reserve, an effort to move banks toward more conservative positions and force them to maintain a larger cushion against potential losses. They come two years after the collapse of Lehman Brothers set off a worldwide banking crisis that required billions in government bailouts.
ALSO at DBKP:
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Economist: USA in Economic Depression; 13 Reasons Why
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Recovery Summer: Car Sales, US Birthrate Crash, Bunker Supplies UP
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The Wreckage of Obama’s Recovery Summer
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Obama’s Recovery Summer Tour: Fully As Effective as the WIN Button
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Obama Recovery Summer: Residential Construction Down
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Obama Wipes Out While Surfing Recovery Summer-UPDATED
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Joe Biden’s Recovery Summer Struggles Against Bleak Economic News
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2011 Economic Forecast: A Second Scoop of a Double Dip
What’s another word for “deceleration?” How about “contraction?”
Examiner Editorial: Bribing the public with the public’s money
A new report by the Federal Reserve points to “widespread signs of deceleration” in the U.S. economy. No kidding! These signs follow what the Fed calls a “burst” of growth in the last quarter of 2009 and first quarter of 2010 triggered by President Obama’s $862 billion stimulus package. Unfortunately, the burst failed to help anybody except special interests like unions and public employees. Note the Fed’s evasive word choice: Another word for “decelerating” would be “contracting.” That’s what happens in an economy debilitated by high unemployment, government over-regulation, spiraling public debt, and whopping tax increases looming for the most productive people and businesses.
The Fed report also warned that consumers are not spending like they used to. In other words, they are instead prudently doing what Washington politicians seem incapable of doing — reducing debt instead of piling on more of it. Consumers are thus casting an overwhelming vote of “no confidence” in Washington’s ability to put the nation back on the road to prosperity in the age of Obama. When you add taxpayer bailouts of ineptly or dishonestly managed corporations and a massive expansion of health care entitlements, it becomes clear that America is at a historic crossroad.
The editorial goes on to paint a picture of what happens when more people are taking than are contributing tax dollars.
And lastly, John Boehner, House Minority Leader, demonstrates why the Republican majority–if it happens–might just be a very short-lived thing: let’s let the tax cuts expire for those who would create the jobs.
Boehner: I’ll Drop Tax Cut for Rich If I Have To
The leading Republican in the House, and a vocal proponent of allowing an extension of the Bush-era tax cuts for all Americans, including the wealthiest 3% of earners, objected to charges by President Obama that Republicans are holding tax breaks for the bottom 97% of earners hostage unless the wealthiest also get an extension.
In a pre-taped interview to appear on CBS’ “Face the Nation” Sunday, Republican House Minority Leader John Boehner said that, if approving a bill to extend breaks for middle class income Americans were “the only option,” he would support it.
Republicans have four years to clean up such empty-headed thinking before a large number of conservatives bolt for another party. A Tea Party?
Maybe. But if Boehner’s remarks are the way the Republican leadership is thinking, they won’t remain in the leadership for long.
by Mondo Frazier
image: dbkp file
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