Is The Recession Over?

[No DUplicitous DUpe]

Is The Recession Over?
posted with permission from http://sane-ramblings.blogspot.com/2009/10/is-recession-over.html

The U.S. government proclaimed it is, announcing a sharp 3.5% rise last quarter in the Gross Domestic Product, the first time it rose in over a year. So is the worst Recession since the Great Depression behind us?

If it is, it's great news for all of us, but especially for the 15 million people who can't find a job or the millions facing home foreclosure or struggling to buy groceries. So is it true? Is the Recession over?

Unfortunately not.

It turns out the growth came from government stimulus and bailouts. Part of it came from the "cash for clunkers" program which spurred auto sales in July and August. But when that program ended, sales crashed.

Another big part of the growth came from a huge jump in real estate sales. However, many of those sales were sharply discounted foreclosures or from sellers that had to match those low prices.

In addition, the U.S. government kept mortgage rates artificially low and in many cases, made guarantees so buyers could get easy qualifier loans with very little money down. First time buyers also got $8,000 in tax credits, a program scheduled to end November 30th.

But fearing that without that tax credit program, home sales will fall into a crevasse, Congress is scampering to extend that first time home buyer program for at least another six months.

Here's the problem. Believe it or not, 70% of the U.S. economy comes from consumer spending for we have shifted most of our manufacturing overseas and now buy from others much of what we used to make ourselves. And until the job market ends its nose dive and people feel comfortable spending their money, no statistical slight of hand will uplift the economy.

No my friend, the government is still borrowing money with both hands and printing it when it can't borrow enough. There is no end in sight to its wild spending on bailouts and weapons and wars as our nation sinks ever deeper into debt.

The good news is we have each other. As people did during the Great Depression, we will help one another get through these tough times to a better tomorrow.

[dysfunctional press]

1. technically- maybe. realistically- NO.

[golddigger]

2. NO!

[No DUplicitous DUpe]

3. OK, That's 7 for "no", and 0 for "yes", so far

Keep those comments coming.

edited to update the count

[DJ13]

4. Not until the average person starts seeing improvements in their income

This clarion call that the recession is over only applies to the top 5% of the country.

For them everything has improved.

[graywarrior]

5. Not in Massachusetts

http://www.boston.com/bostonglobe/

[HughMoran]

6. No.

The stimulus (& other measures) are doing what they were designed to do however, so I'm not complaining. It could be a LOT worse right now.

[lib2DaBone]

7. We need 30 Million Jobs for full employment

We got 640,000 from the stimulas program.

That is what? Roughly... 2% of what we need?

I'm not complaining.. just sayin'.

What I don't underatnd, is.... How can we afford a war in the Mid East?

[No DUplicitous DUpe]

9. How can we afford a war in the Mid East?

A war? more like 3 wars. And you are correct, we can't afford them.
Thank you.

[BeHereNow]

8. The elves are simply repackaging it for consumer consumption. n/t

bhn

[ixion]

10. in my opinion: no

we're just getting started.

[AllentownJake]

11. If you look at the September report

issued today vs. the August and September report it was obvious that this was not a recovery.

Of course they issued the September report the day after the GDP number.

[Brickbat]

12. Hang on, lemme check...

No.

[Orsino]

13. Sure, as long as we let the very rich define the terms of debate.

They are trying, once again, to isolate us from one another, to make each of us feel that there must be something wrong with me, if the economy is improving and the white men in suits on TV can make me feel ashamed.

If they let us think too long, we might decide to do something about this musical-chairs economy of theirs.

[Skittles]

14. fuck no

it is getting worse

[ProleNoMore]

15. Has The Sun Stopped Rising and Setting?

eom

[dschis]

19. True, no breadlines just yet

But that's because there were still a few safety nets left. But it's not over yet

[FarLeftRage]

16. Not where I live...

I've been out of work for over a year now and it looks like it's getting worse.

[dschis]

17. they need to stop using the GDP as an economic

barometer. For one thing it doesn't show the how the individual states and locales are doing. For another stock trades and other similar transactions are put in there and that doesn't help the average joe. Unless of coarse you go for the trickle down theory.

In this case it was the cash for clunkers and the first time buyers tax credit.

I'll say it again how fast did we come out of the Great Depression? This was the second worse and if the economists are to be believed could have made the Depression look like just a bad day for your stocks.

[tonysam]

18. No.

It's just spin.

[No DUplicitous DUpe]

20. Still waiting for a "yes" nt