Economy: Bad is the new good
Commentary: Some creative spinning in 'recovery' tale
By Lou Barnes, Friday, January 8, 2010.
Flickr photo by Doing.Over the holidays, long-term interest rates rose almost a half-percent, the 10-year Treasury note moving into the 3.8 percent range -- the highest since the "double top" last summer. Mortgages have held remarkably well, with the lowest-fee stuff up to about 5.25 percent.
A renewed, two-group consensus drove the jump: The economy is in a solid recovery, or even if it isn't, immense Treasury borrowing will force rates higher. Both groups agree that the Fed should stop its assistance, either because the economy no longer needs it, or because even if the economy does need help, to continue assistance would produce inflation.
I think this consensus is mistaken. There is no meaningful recovery under way, and the Fed has already pulled up short. More data like today's will add to policymaking tension, force the administration's hand, and soon have the Fed back to buying mortgages, Treasurys or both.
Today's payroll report will be spun unrecognizably, but the reality is that no job creation is under way. New claims for unemployment insurance have fallen one-third from their peak last spring, but that positive signal is more than offset by an extraordinary shrinkage in those even trying to find jobs -- 661,000 souls gave up last month.
The rate of unemployment stayed put, but the condition of the workforce is deteriorating.
Some sectors are OK. Health-care employment is unhinged from economic reality; big parts of technology are untouched (innovation is notably miraculous); and giant multinationals are improving.
However, the giants have no more connection to ordinary citizens than holiday gifts company Scrooge & Marley. The giants can shed labor and disinvest here and redeploy in still-hot emerging markets -- into niches big and small all over the world. Nobody has access to adequate credit except those giants.
The greatest public-policy tension-builder is housing, and new reports added weight to frayed cables.
The Fed released its December meeting minutes this week. Noted widely: "a few" members wanted the Fed to stay in the MBS-buying business; one wanted it to stop altogether (see Inman News). Fair enough. ...CONTINUED
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Submitted by William Metzker on January 8, 2010 - 3:47pm.
Thanks again, Your Curmudgeonliness. It's nice to read something that isn't all chaff.
Submitted by Sal Antsipenka on January 8, 2010 - 5:38pm.
The fact of the matter is people remain the same and quite rarely learn from their own mistakes. The Government is all the same people, not geniuses and wizards of OZ. Current crisis solution does not depend on slogans or political speeches it has to work itself out, because of the nature of this crisis - poor judgement and greed.
Sal Antsipenka
Independent Brokers Realty
Naples, Florida
http://www.naplesrealestateseller.com
International RealEstate Buyer Leads
http://www.realestatefair.net
Submitted by Mike Goldman on January 8, 2010 - 8:46pm.
Mayer Amchel Rothchild (1743-1812)
"Let me issue and control a nation's money, and I care not who writes its laws"
--- Meyer Rothschild (Original Central Banker / Fed Chairman)
EVERY AMERICAN SHOULD WATCH THIS - Wow-Big 1-2 minutes
During WW II a Japanese admiral was once asked about
invading the US.
He said the Japanese equivalent of saying: "'No way!
There'd be a sniper behind every blade of grass."
Then there's Switzerland...
Video:
http://www.brasschecktv.com/page/754.html
Click Here
Subject: Re: Quote by Thomas Jefferson "If a Central Bank is ever created in America- Through Inflation and Deflation the "Bankers" will Rob The Americans"
****B of A to own Countrywide Mtg.(B of A will by itself control close to 40% of ALL USA Mortgages) with Countrywide alone not counting the two below.
JP Morgan to own EMC Mtg.---Merrill Lynch to own Saxon Mtg.
(Talk about a Monarchies)
Subject: Quote by Thomas Jefferson "Is a Central Bank is ever created in America- Through Inflation and Deflation the "Bankers" will Rob The "Americans"
This is the Truth-The Bankers created the S&L crisis and eliminated the competition and They created the Sub-prime crisis (The Banks create the product not the Loan-Brokers) and will eliminate the Loan Brokers.And have already procured the Treasury-and Federal Reserves' approval and the Supreme court confirmation to go into Real Estate and as The now deceased "George Thatcher" ( Thatcher who started Sterling S&L and build it into Union bank and sold it to Barclays -Who sold it to a Japanese Financial concern) told me - The Bankers tried this in the depression. As the "Movie" " A Wonderful Life" with Jimmy Stewart depicts" only this time the "Jimmy Stewarts of America" lose. Due to a ignorant Senate / Congress /and Public all to willing to buy the (BS) -That the Loan Brokers did it. And this way (With only the Banks left) the Public will save money with No competition (Wrong). Further the Late Senator "Henry Hyde" of Utah and "Henry Gonzales" of Texas held the Bankers at bay till "Henry Hyde's" apprentice turned on him after he died and "Sold" out to the Bankers.
Lets start a petition and have everyone from the Homeowners' losing their Homes to the Loan Brokers to the Real Estate community sign under this and get millions of signatures and STOP the Bankers before it is to late to save the "America" created by our Founders OR will we become like the "Serfs of Europe" in the 1300-1600s controlled by the Central Bankers as Slaves.
The plan is for a ALL powerful Federal-Central government to eliminate the States, And then , Run "America" Thru the Federal Reserve and its main Bankers .Example: B of A will control 22% of ALL Home Loans on the buy out of Countrywide. This means B of A will control more than 1 out of 5 Home
Loans. Remember the "Magna Carta" & the "Bill of Rights & The Sons of Liberty & Thomas Paine's "Common Sense" & the Laws against Monopolies.
The Truth is the Loan Brokers (were pawns) and for the most part made a living and sold their Loans to the big Banks who were not at this point controlled by Respa and resold the Loans at Multiple profits to the (GSEs). Compare the Loan-Brokers commissions with the Bankers." The BANKERS HAD THEIR HIGHEST PROFIT in HISTORY" from 1999-2006 who. and now are crying "Wolf" .
Our founders refused to have a Central Bank-- until the Traitor- Wilson "SOLD" out with J.P. Morgan's"
Help creating the "Federal Reserve"
We had absolutely no national debt, had the largest middle class in the world, and Mom stayed home to raise the kids.
Read what Pres. Andrew Jackson Pres. Thomas Jefferson and Pres. George Washington thought of the Central Bankers.
The Treasury Department's plan to revamp regulation of the nation's banks, thrifts and investment banking firms is (so we hear) going nowhere fast. The blueprint - among other things - would eliminate state banking charters. As we all know, state chartered banks are at the center of the nation's mortgage crisis because they're the ones who created all those risky loan programs, securitized subprime mortgages, and sold them overseas in the form of CDOs to foreign investors. Ooops, I'm sorry that's Wall Street where Treasury secretary Henry Paulson used to work. If I were the head of a community bank trade organization I would attack the monster that created the mess: Wall Street. How best to do that? Answer: resurrect Glass-Steagall which (until it was torn down by Congress last decade) prohibited investment bankers from owning depositories and banks from underwriting securities..
Accounts Receivable Tax
Building Permit Tax
CDL License Tax
Cigarette Tax
Corporate Income Tax
Dog License Tax
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel Perm it Tax
Gasoline Tax
Hunting License Tax
Inheritance Tax
Inventory Tax
IRS Interest Charges (tax on top of tax),
IRS Penalties (tax on top of tax),
Liquor Tax,
Luxury Tax,
Marriage License Tax,
Medicare Tax,
Property Tax,
Real Estate Tax,
Service charge taxes,
Social Security Tax,
Road Usage Tax (Truckers),
Sales Taxes,
Recreational Vehicle Tax,
School Tax,
State Income Tax,
State Unemployment Tax (SUTA),
Telephone Federal Excise Tax,
Telephone Federal Universal Service Fee Tax,
Telephone Federal, State and Local Surcharge Tax,
Telephone Minimum Usage Surcharge Tax,
Telephone Recurring and Non-recurring Charges Tax,
Telephone State and Local Tax,
Telephone Usage Charge Tax,
Utility Tax,
Vehicle License Registration Tax,
Vehicle Sales Tax,
Watercraft Registration Tax,
Well Permit Tax,
Workers Compensation Tax..
STILL THINK THIS IS FUNNY?
Not one of these taxes existed 100 years ago,
and our nation was the most prosperous in the world.
We had absolutely no national debt, had the largest middle class in the world, and Mom stayed home to raise the kids.