No. Here's
Robert Reich:
But we're not at the beginning of the end. I'm not even sure we're at the end of the beginning.
Some of the big banks will claim to be profitable, but don't bank on it. Neither they nor anyone else knows what their assets are really worth. Besides, the big banks are sitting on over $500 billion over taxpayer equity and loans. Who knows how they're calculating profits? Most importantly, there's still a yawning gap between the economy's productive capacity and what it's now producing, and absolutely nothing will turn the economy around until that gap begins to close.
Here's
Paul Krugman:
OK, a couple of things.
One is that even in the Great Depression, things didn’t head down all the time.
I would not be surprised if GDP growth is positive in the second half of this year, if only because of the inventory bounce. But I will be surprised if the unemployment rate actually turns down.
Naked Capitalism (guest post by Edward Harrison):
This is a fake recovery because the underlying systemic issues in the financial sector are being papered over through various mechanisms designed to surreptitiously recapitalize banks while monetary and fiscal stimulus induces a rebound before many banks' inherent insolvency becomes a problem. This means the banking system will remain weak even after recovery takes hold. The likely result of the weak system will be a relapse into a depression-like circumstances once the temporary salve of stimulus has worn off.
In truth, the U.S. banking system as a whole is probably insolvent.
You should be under no illusion that the coming rebound is permanent. Much of it is not. What we are seeing is the makings of a cyclical recovery that might begin as early as Q4 2009 or Q1 2010. How long or robust that recovery is remains to be seen. Moreover, it is still questionable whether we will get any meaningful recovery at all in spite of the 'green shoots' because the banking system in the United States is severely undercapitalised and more asset writedowns are coming due. This is a fake recovery underneath which many problems remain.
Also, Moody's has
downgraded the entire country.
No. Here's Robert Reich:
6 comments:
I would like to commission someone to write a song called:
" We are toast"
...sung to the tune of " We are the children"
thank you
I am in no way an economist nor do I play one on TV. I don't understand much of the lingo and the way they play with numbers. What i do know is that I do not trust anyone who tells me what my eyes are seeing. Too many of my fellow Americans are in a world of hurt and NOTHING ( as far as most of us can tell ) is being done to address the reality that there are NO jobs to be had,
No jobs....no money!
There is a trillion dollars of credit card debt in the United States. Getting as much of it back should be a goal of the banks.
However, the way to get this money back is to offer low interest paydown prorams.
Instead, the credit card companies are ramping up rates on credit card debt, even on debt that they promised would remain low for the life of the loan.
This Stephen Cutler guy at Chase is of grave, and great concern to me. I've written about him at Stephen Cutler smoking gun.
Join the protest against the Credit Card companies
Daily-Protest.com
"Cheer up, because it might not bloody happen!"
I have to agree with her-the bleakness is just getting to be a bit too tedious for words.
And then the Gov. is telling banks not to give out any info re: their means tests scores. Wouldn't want anyone to know how our money's doing.
I am also not an economist. I am also not a physic. I am aware enough to see that a country that keeps shedding hundreds of thousands of jobs per month is not doing better.
I tend not to get all excited and claim that "Happy Days" are on the way every time the DOW jumps up or prepare to climb out a window when it falls.
What would be beneficial for all of us is if we were told the truth. Not Republican truth or Democratic truth or any truth connected with politics. Is there such a thing?
But I digress, I just want the truth.
People need some idea of what exactly is going on and where the experts expect it to take us. If only for a chance to bend over and kiss our collective asses goodby.
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