Tuesday, October 27, 2009

The Recession is Over, But You Didn't Notice

One of the "experts", Bernanke, tells us: "From a technical perspective, the recession is very likely over."
Oh, really? I heard this claim from some of the other "economic" experts, and I and many other Americans just don't buy the crap-propaganda any more. Out here in the real world, we know better. It's called reality testing, where the facts are right in your face. Facts like unemployment is going to top 10%, which is bad enough, but the real figures are more like 20%. when every 1 or 2 people you meet on the street is out of a job, and they tell you that they're going into foreclosure on the home, they'll probably have their car reposessed, and perhaps soon, they'll lose their unemployment benefits. They're stressed. They're not in recession. They're in a depression (in every sense of the term).
I think Washington is still stuck in the unreality play that was shockingly exposed by one of Bush No.2's White House staff when he said: "We create our own reality."
This act of "creating their own reality" has been going on for over 9 years now, openly stated to the public that is, a public who knows that unreality is common disease in Washington, D.C and has been a theory, like their economic theory, that has been practiced for decades.
If anyone hasn't figured out that their economic theories are totally out of sync with reality has been on Prozac too long. How can anyone listen to the very same economists who created this humongous problem we have, not just in the U.S., but world-wide? How? See this article in the New York Times that explains how the "master-mind" economists got off track.


How Did Economists Get It So Wrong?

Published: September 2, 2009

Here's an excerpt from the article--current thinking--that demonstrates the lunacy accepted as reliable theory: "
Thus Chicago’s Casey Mulligan suggests that unemployment is so high because many workers are choosing not to take jobs: “Employees face financial incentives that encourage them not to work . . . decreased employment is explained more by reductions in the supply of labor (the willingness of people to work) and less by the demand for labor (the number of workers that employers need to hire).” Mulligan has suggested, in particular, that workers are choosing to remain unemployed because that improves their odds of receiving mortgage relief. And Cochrane declares that high unemployment is actually good: “We should have a recession. People who spend their lives pounding nails in Nevada need something else to do.”
Oh, sure, the guy next door who lives from payckeck to payckeck, justs wants a vacation from the business of feeding his family, paying for his house, keeping his car, and other necessities of life. If he takes this little vacation, nothing terrible is going to happen. He is going to get "mortage relief". Sure, right. Say that to the working people going into foreclosure all over the U.S. Funny how none of them got the mortgage relief, but found themselves and their familes dumped on the streets. No relief here. Just world of trouble. But in Washington, the smart-asses think they guy just needs a break from pounding nails!
These economists and their followers in D.C. just can't seem to learn from past history nor their current mistakes. They continue to spew theories that in no way match with reality.
Had enough theories yet?

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