The GOP's 'Uncertainty' Talking Point, Debunked

[cal04]

http://www.huffingtonpost.com/2011/11/13/gop-uncertain-economy-debunked_n_1088448.html


With the economy in a slump for nearly four years, corporate executives and conservative politicians have repeatedly invoked "uncertainty" as a major barrier to American job-creation. The "uncertainty" jab is a go-to talking point for any congressional Republican looking to tag President Barack Obama as a tax-raising, regulation-obsessed foe of American businesses.

But according to banking data compiled by economic research firm Moebs Services, the uncertainty plaguing the American economy has nothing to do with government regulations or taxes on millionaires. It's an uncertainty driven squarely by consumers and small-businesses who are worried about their short-term financial prospects. And it's been going on since well before Obama took up residence in the White House.

Since the end of 2007, bank customers have pulled over $900 billion out of certificates of deposits at major U.S. banks, parking their money in checking accounts and money market deposit accounts. Banks pay customers interest to park their money in CDs, but pay out next-to-nothing for money market accounts, and still less -- usually nothing -- for checking accounts.

"These are enormous shifts," Moebs Services founder and Chairman Mike Moebs told HuffPost. "We haven't seen stuff like this since the 1930s."

[Andy823]

1. The problem is

Those who watch fox, listen to Rush and Beck, all buy into this BS. The good thing is they are a minority, not a majority. They are the same bunch who vote year after year for politicians who are doing their best to destroy the american way of life, and yet these member of the so called republican "base" can't see the damage they are doing to themselves year after year by putting those same republicans back in office!

[EC]

2. Sounds like they are thinking that they'll need

liquid assets soon.

[unblock]

3. "uncertainty" is complete horsedroppings, in fact. there's rarely more certainty than there is now.

that certainty SUCKS, of couse, but it is pretty certain that the economy will continue to suck for the forseeable future.
unemployment will remain high for the forseeable future.
interest rates (for banks, anyway) will remain extremely low for the forseeable future.
congress will pass no significantly helpful laws for the forseeable future.
federal spending will stagnate for the forseeable future.
benefits will continue to be cut for the forseeable future.
consumers will not buy anything in droves for the forseeable future.

where's the uncertainty?

[Laelth]

4. k&r for exposure. This is interesting. n/t

-Laelth

[surrealAmerican]

5. Could this also have something to do with the ...

... interest rates payed on CDs in recent years? They may not be enough higher to make up for the lack of access to many people.