Friday, April 27, 2012

The Obozo Economy: Still Staggering

One can argue--and I do--that the Obozo Economy is 'recovering.'  All the major indicators have been positive for more than a few months.

But "positive" does not mean "great."  In fact, it doesn't necessarily mean "good."

...we learn that the Glorious Obama Recovery seems to have hit a rough patch. Employers added only 120,000 new jobs to their payrolls last March after several months of averaging twice as many. Meanwhile, the four-week moving average of new unemployment claims hit 381,750. This is as poorly as this indicator has fared since early January....

The Chicago Fed National Activity Index deflated last month; it's anemic.  Same with the ECRI Index.  The Fed won't be increasing rates soon, by their telling of it.

It's a bit like watching a drunk walking.  A few halting steps forward, then a pause, reconnoitering, then a half-step backwards, then a lurch forward again, and a hand goes out to feel the way along the wall, then a pause.....

2 comments:

  1. This shouldn't be a surprise. The government abandoned expansionary fiscal and monetary policy long ago. 2% GDP and lackluster improvement in the labor market is the result. Plan on this below trend growth to continue for years. Keynesians have been telling you this for 3 years Dadster.

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  2. Wrong.

    The Bank Bust is the cause and the Bank Recovery--when it occurs--will be a help to the economy.

    We'll need the help just to pay off ObozoDebt.

    ReplyDelete