We’ve Been In A Recession For A Year
And only NOW they tell us. According to the National Bureau of Economic Research is he body that determines these things.
By one benchmark, a recession occurs whenever the gross domestic product, the total output of goods and services, declines for two consecutive quarters. However, the NBER’s dating committee uses broader and more precise measures.
The GDP did contract by 0.2 percent at an annual rate in the fourth quarter of 2007. However, that drop was followed by a 0.9 percent rate of increase in the first quarter and a 2.8 percent spurt in the second quarter, when the economy was boosted by the distribution of millions of economic stimulus payments.
However, employment, one of the measurements tracked by the NBER, has been falling since January.
The GDP turned negative again in the July-September quarter of this year, falling at an annual rate of 0.5 percent. Many economists believe the GDP is falling in the current quarter at an even sharper rate of 4 percent.
They can’t blame President-elect Obama for this one, as conservatives claimed fear of his presidency was driving us into a recession once he got elected. Maybe they can blame Hillary Clinton, as she was going to be the likely next president at the time the recession actually began.
They can’t blame President-elect Obama for this one
Are you kidding? Of course they can. Partisans (on both sides) show a remarkable ablity to interpret events in the most creative ways.
I anxiously await to see how they twist reality to show the recession to be Obama’s fault.
December 1st, 2008 at 1:44 pm
Sean Hannity is already calling it the “Obama recession”.
December 1st, 2008 at 2:03 pm
So does Rush Limpball.
December 1st, 2008 at 2:59 pm
Gee, I wonder if Hannity will say anything about this on his show tonight. I’m not gonna hold my breath.
December 1st, 2008 at 4:33 pm
Where is Homer Simpson when you need a big, “Doh”?
Official or not, we’ve been there for a long time….and Hannity barely knows his zip code…he keeps dialing it hoping there is someone who believes his twisted lies on the other end of the line….
Hey, Sean…get a clue!!! You aren’t the center of the Universe…no matter how much Kool aid you drink!
December 1st, 2008 at 4:38 pm
I don’t know whether to laugh or cry. From the AP:
The White House commented on the news that a second downturn has officially begun on President George W. Bush’s watch without ever actually using the word “recession,” a term the president and his aides have repeatedly avoided. Instead, spokesman Tony Fratto remarked upon the fact that NBER “determines the start and end dates of business cycles.”
“What’s important is what is being done about it,” Fratto said. “The most important things we can do for the economy right now are to return the financial and credit markets to normal, and to continue to make progress in housing, and that’s where we’ll continue to focus.”
(AND HERE’S THE MONEY QUOTE…WAIT FOR IT…)
“I’m sorry it’s happening, of course,” Bush said, referring to a global financial crisis that has eliminated millions of jobs and damaged retirement accounts.
(KA-BOOM!.. *THUD!*…. “Someone call an ambulance, Uncle Sam’s had an anyeurism and the Statue of Liberty’s trying to drown herself in the Atlantic!”)
December 1st, 2008 at 5:48 pm
GOD BLESS my fellow libs. I listen to RUSH and SEAN all of last week. Man! the bull that was spewed stunk so bad from the radio,i needed a mask. What irks me is,the right can never except blame for total failure. Financial crisis we are in is trickle down logic with no regulation and very little. I just want to say to my fellow right wing AMERICANS. Look? You are being brain washed. Open your mind and relax. Say to yourself,my wisdom is failed wisdom and the leaders i voted for failed as well. Starting on tuesday,i will disagree with RUSH and SEAN. Atleast try.
December 1st, 2008 at 9:28 pm
According to Keynes, the root cause of an economic downturns is an insufficient aggregate demand. When the total demand for goods and services declines, businesses throughout the economy see their sales fall off. Lower sales induce firms to cut back production and to lay off workers. Rising unemployment and declining profits further depress demand, leading to a feedback loop with a very unhappy ending.
90% of the time you can make statistics show whatever you want 50% of time
http://nomedals.blogspot.com
December 1st, 2008 at 10:30 pm
Come on Alan ~ of course they will blame this on Obama! The fact that it makes absolutely no sense means nothing.
Remember, these are the same people that claim the economic success during the Clinton presidency was really due to the “trickle down effect” of Ronald Regean’s policies!
Delusions have no boundries!
December 1st, 2008 at 11:23 pm
It is the easiest thing in the world to blame every thing that happens on the President, whoever that may be at the time. It is also easy to give the President all the credit when things are going great guns, who ever that may be in the office at the time.
Truth is, the President can only guide the country, but only if he has cooperation from the House and Senate. He puts out a budget but Congress disects it and sends their bill back to the President to sign or veto. Unfortunately Bush didn’t veto enough spending bills.
He can spell out his agenda, but if Congress doesn’t think it will work the Presidents agenda will fail because Congress will not act on it.
Actually a good reason to have divided government. So one side can’t ram through bills that are bad for this country. Let’s watch the next two years and see what happens.
Does Obama have the right answers for our economy? I don’t know. Lets just watch and pay close attention to what he does. I hope he has the right solution.
December 2nd, 2008 at 9:31 am
According to Rusty Limbaugh or Shiny Hannity the ‘liberal media machine’ created the recession out of pure fantasy about a year ago in order to sell newspapers or something. Now they are unable to call a mountain a molehill anymore so they are left with no recourse but to call the downturn a ‘Obama Recession’.
Not making excuses for these spin artists just pointing out that they were painted into a corner as they so often do to themselves.
Anyone want to know how to fix the economy? If you’re a student go to school and pass, if you’re a worker go to work and keep your job, if you’re a buisness owner then do everything you can to keep staff and stretch profits. And if you’re sitting on a pile and just don’t know what to do then invest in American brands or better yet start a buisness. Our system dies not by bouncing ball Dow Jones numbers but by the vast majority of Americans losing faith that we will continue to prosper. In short, don’t ever bet against the US.
December 2nd, 2008 at 10:38 am
Pretty good post, Eric. Yep, the stock market’s mighty emotional. I think the Internet’s increased the volatility, as well.
December 2nd, 2008 at 12:39 pm
From someone who owns a small business , it’s really been the last 4 years.
December 2nd, 2008 at 12:47 pm
Blame will be assigned based on his performance in office. If Presidents get the credit for a good economy, they also get the blame for a bad economy.
If it rebounds he’ll get the credit for that. If it doesn’t of course he’ll get blamed.
December 2nd, 2008 at 5:24 pm