The Ghost of Snapped Shot

Or, welcome to my low-maintenance heck.

Wait... What?! I Think I'm Lost. Say That Again! [Update: Picture becomes clearer]

Guess what folks.  The economy has turned the corner.  We are on the road to record-breaking economic recovery.  The Obamassiah has opened the heavens and blessings are raining down upon the heathens.

News comes out today that has proof of our personal economic recovery and that the government has thus saved us.  But.... there's bad news about our economic recovery as well.  Wait... What?  Ok, I am lost.

Ok, help me out here.  Help me to decipher this glowing puff piece written BY the government of Obama and delivered by his minions in the cr(AP).

First off, we have this:

A flurry of reports out Wednesday suggested that many Americans are feeling better about the economic rebound.

Retail spending rose sharply and more than expected. Consumer inflation remains all but invisible. Businesses are boosting their stockpiles in anticipation of higher shopper demand.

A flurry.  An actual flurry?  I feel like a young child again enjoying the first real snow of the season after being out of school and my mom has the hot chocolate going on the stove, and I am dressed as warm as a bug in...... ahem....


It would seem that the government is really trying to get a certain viewpoint across.  Funny how they like the press when they really want to.  But then sometimes, its almost like they hate the press and the Freedoms the press stands for.

Spending has gone up.  Inflation is "invisible".  (cough) And, businesses are buying lots and lots of supplies and products building up their stockpiles because they know the shining light of recovery is just a few meager steps down that road.


And Federal Reserve Chairman Ben Bernanke expressed confidence that the recovery will endure, though without enough strength to quickly reduce unemployment much.

In a separate report, the Labor Department said consumer prices edged up just 0.1 percent in March. And excluding food and energy, prices were unchanged in March. Over the past 12 months, those prices have risen at the slowest pace in six years.

Still, household budgets remained under pressure as hourly earnings fell again.

Ok, if we take out the cost of food and energy, which is some of the biggest expenditures in a household budget, consumer prices were unchanged yet edged up by 0.1 percent.  Ok, so what were the energy and food price changes then?  Hmmm?  Care to tell that info oh independent journalist with high principles cr(AP)?

So, spending has gone up.  Economy is turning the corner.  But, prices are inching up.  Economy will not add to reduce unemployment (over the next year or two by some in the government). And to top it off, household incomes have fallen.  Again.

So.  I am lost.  If spending has increased, then where are the people getting this money?

And the government is touting another report (that they put out):

Commerce also reported Wednesday that businesses increased their stockpiles for the second straight month in February. That's a positive sign that they expect further sales gains.

Factories, retailers and wholesalers had slashed inventories during the recession as sales plummeted.

But, couldn't this also be explained by the typical notion that businesses typically don't like to play catch-up?  If the history of recessions are that there is a recovery following, then these businesses might just be throwing the dice out there hoping that the recovery will turn around.  Especially now that winter is over and spring is blooming.  They want to have that stock on hand SHOULD the economy turn around.

But, what if the economy doesn't?  What if we are so riddled with debt, paying higher taxes, and job prospects are still meager and less profitable? 

What if all you are seeing are the IDIOTS that are blind or refuse to see the writing on the wall?  I mean, you all know we have some really friggin big idiots our there. 

Am I the only one that thinks we need to hold on to our money a bit tighter from now on?  Or are you guys just part of that half of the country that doesn't pay taxes?  That might explain a few things here.  If I didn't have to pay taxes and I knew I would get "free" ObamaCare, then what stress am I feeling right now?

If I didn't pay taxes last few years and I was told that my taxes would not go up next year, or while Heir Obama is in the House, then would I be feeling any trepidation about the future economic outlook of our country?

I don't think so.

Meanwhile, for those of us who live in reality, we see the future not looking so bright.  We wear our shades just to hide our red eyes from all the tears we are shedding.

If our mortgage loan and health insurance systems are about to crash, what is there to be spendy-happy about?

But, if you can diagnose this better than I can.  Let me hear from you.

[UPDATE:]  Denninger at The Market Ticker might have something:

If they're generated off personal income, then they're good and indicate improvement in the economy.  But if they're being generated by people not paying their debts, and the evidence is that this is exactly where the money is coming from, then we've got a problem, because just as with the false economic signals sent by monstrous deficit spending this too is a false signal that will be responded to by the market with ultimately disastrous results.

[UPDATE 2:] 

U.S. small business owners have little confidence in the economy and are in no rush to hire or expand, despite signs the recovery is picking up, a survey released Tuesday showed.

The National Federation of Independent Business said its monthly index of small business optimism fell 1.2 points in March to 86.8 and below 90 for the 18th consecutive month.

"The March reading is very low and headed in the wrong direction," said Bill Dunkelberg, NFIB's chief economist. "Something isn't sitting well with small business owners. Poor sales and uncertainty continue to overwhelm any other good news about the economy."


A record number of U.S. homes were lost to foreclosure in the first three months of this year, a sign banks are starting to wade through the backlog of troubled home loans at a faster pace, according to a new report.

... the number of U.S. homes taken over by banks jumped 35 percent in the first quarter from a year ago. In addition, households facing foreclosure grew 16 percent in the same period and 7 percent from the last three months of 2009.

More homes were taken over by banks and scheduled for a foreclosure sale than in any quarter going back to at least January 2005, ...

"We're right now on pace to see more than 1 million bank repossessions this year,"

[More Related]

General Motors Corp. may no longer be the world's biggest automaker, but it still operates the country's largest pension fund. The threat to its pension plans has always been an issue, butit took on a new urgency when GM disclosed April 7 that its plans were underfunded by more than $27 billion, with more than half of that being owed to U.S. workers and retirees.

Across town, a post- bankrupt Chrysler faces its own pension shortfall. Moreover, a report last week from the Government Accounting Office (GAO) says the pension crisis in the auto industry could create an unprecedented crisis for the federal Pension Benefit Guarantee Corp.

Could taxpayers really be on the hook for UAW pensions?

Yes. GM could face a funding crisis in 2013 or 2014 when, under the current projections, the automaker will be required to make more than $12 billion in contributions to its pension funds to keep them solvent, according to the GAO analysis. Chrysler's estimated future pension obligation is $3 billion.

If the companies cannot meet their funding obligations they may have to terminate their plans, and the financial responsibilities (up to government limits) would be assumed by the Pension Benefit Guarantee Corporation.

The funding could easily become a serious challenge for the PBGC, which says it is now facing $168 billion in possible plan terminations across a range of companies, many of them auto suppliers.

Happy Days Are Here Again!!  Happy Days ARE  Here ... Again!!!


Powered by Snarf ยท Contact Us