Tuesday, January 08, 2008

Mixed messenger

By Capt. Fogg

George Walker Bush gave a speech yesterday at the Union League Club in Chicago. That, of course, is a club where it's been a tradition that no one of my ethnic background would have been allowed to join. Of course I have as much interest in applying as I do in furthering the economic rape of the United States by Mr. Bush's clients, but I digress. The revelation here is not that Bush feels at home in restricted men's clubs but that he's made a long overdue admission, carefully disguised as optimism, that the economy stands on foundations of Jello.

"We can't take growth for granted"
is as close to an admission of the rising doo-doo level as I've heard him make. Rising unemployment, plunging housing markets and the struggling Dollar were were tangentially touched upon by saying
“recent economic indicators have become increasingly mixed.”
I've never served on a Submarine, but I've seen enough movies to have an idea that when the klaxon blows it doesn't indicate a mixed message; something is heading downward very soon and I'm sure that isn't a violin I'm hearing.
“Many Americans are anxious about the economy,”
says the decider who seems as yet undecided as to whether to openly acknowledge that we have a problem for fear that someone might notice that he caused it. We will probably have to wait until what I will celebrate as his last State of the Union Address later this month to know whether he intends to ignore the invisible hand of the market and try to stimulate the economy, whether he intends to run out the clock, or whether he will just do the Bush thing and push for another regressive tax cut.
“People said, ‘Are you optimistic?’ I said, ‘Absolutely, absolutely optimistic. Do I recognize the reality of the situation? You bet I do.”
Said Bush to his base. I'll bet he does too but you'll have to give me a billion to one odds.

The Democratic response, according to The New York Times will likely resemble "a $500 across-the-board rebate, possibly to be returned to taxpayers in their paychecks through the payroll tax system, as well as a plan to restore the $1,000 per child tax credit to many low-income families that currently do not qualify for it." Who knows if that will help slow the downward momentum but it may help restore optimism outside the Bush bubble.

Cross posted from Human Voices

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2 Comments:

Blogger ECOPHOTOS said...

Wednesday AM: Goldman Sachs sees a recession in 2008:

NEW YORK (Reuters) - Goldman Sachs on Wednesday said it expects the U.S. economy to drop into recession this year, prompting the Federal Reserve to slash benchmark lending rates to 2.5 percent by the third quarter.

In a note to clients, Goldman said real gross domestic product would contract by 1 percent on an annualized basis in both the second and third quarters. For all of 2008, the investment bank said GDP would rise by 0.8 percent.

The unemployment rate will rise to 6.5 percent in 2009 from the current 5 percent …


Bummer!

10:28:00 AM  
Blogger Capt. Fogg said...

I'm always skeptical about predictions, but I've been talking recession for a while now.

2:45:00 PM  

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