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How to Spot an Economic Recovery Addict


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2013 Jul 15, 9:47pm   4,726 views  25 comments

by smaulgld   ➕follow (4)   💰tip   ignore  

Smaulgld

Since the beginning of the Great Recession, dating back to the “green shoots” days of early 2009 and recovery summer of 2010, there has been a crowd of analysts, journalists and pundits searching for signs of an economic recovery.

One group of analysts sifts through the data and determines most of it is negative but concludes “bad news is good news” because it means the Fed will continue its multi-trillion dollar quantitative easing (QE) experiment to try and drive interest rates lower and the real estate and stock markets higher. This realistic school of thought does not believe there is an economic recovery, rather just endless excuses to continue QE.

There is another more addictive school of thought, near Panglossian in nature, that goes “any news is good news” and can be taken as yet another sign of economic recovery.

This is the Economic Recovery Addict Syndrome.

Symptoms of Economic Recovery Addict Syndrome

Symptoms of this wishful thinking malady include: http://smaulgld.com/how-to-spot-an-economic-recovery-addict/

#housing

Comments 1 - 25 of 25        Search these comments

1   smaulgld   2013 Jul 15, 9:59pm  

recovery addicts believe that QE worked and the economy can stand on its own with out it!

2   smaulgld   2013 Jul 15, 11:30pm  

recovery will only happen for real if Fed pulls QE allows TBTF to go under and the economy to restructure without QE or congressional stimulus

3   smaulgld   2013 Jul 15, 11:56pm  

Smaulgld was retweeted by Rick Santelli!

Rick Santelli retweeted you
1h:
@zerohedge Ben will say there isnt enough inflation b/c inflation caused by rising gas prices is "transitory" Moar QE http://smaulgld.com

Rick Santelli

4   smaulgld   2013 Jul 16, 12:38am  

the santelli retweet didn't lead to any new followers @smaulgld

5   smaulgld   2013 Jul 16, 2:41am  

4 years into the recovery and we are headed to a recession!

6   smaulgld   2013 Jul 16, 4:06am  

so the cries of recovery can continue!

7   smaulgld   2013 Jul 16, 6:01am  

Roberto-It was a long wait, thanks for finally weighing in!

8   anonymous   2013 Jul 16, 6:03am  

I see green shoots

They're the promise of future harvest as vines spread from my yam patch

9   Rew   2013 Jul 16, 6:04am  

errc says

I see green shoots

They're the promise of future harvest as vines spread from my yam patch

;P

10   smaulgld   2013 Jul 16, 6:15am  

Green shoots are the promise of a recovery summer

11   David9   2013 Jul 16, 8:30am  

Here you go, from yesterday in the Wall Street Journal:

"A jobless recovery is a phony recovery"

Not all of us buy the B.S.

http://online.wsj.com/article/SB10001424127887323740804578601472261953366.html?mod=WSJ_hpp_sections_opinion

12   smaulgld   2013 Jul 16, 8:51am  

"educating a high tech work force"

first the public schools need to learn to teach kids to read

13   hanera   2013 Jul 16, 9:51am  

robertoaribas says

how to spot a permabear nitwit...

...

doesn't believe 4 years of increasing gdp is a good sign. [not growing fast enough, can't trust govt stats...]

...

They would be correct eventually.

14   hanera   2013 Jul 16, 10:19am  

http://www.washingtonpost.com/blogs/wonkblog/post/who-are-the-long-term-unemployed/2012/05/06/gIQAfCVs5T_blog.html

The older the folks the less likely to get a job once they lose a job. They're also harder to retrain.

15   mell   2013 Jul 16, 10:26am  

smaulgld says

recovery will only happen for real if Fed pulls QE allows TBTF to go under and the economy to restructure without QE or congressional stimulus

Yep.

16   smaulgld   2013 Jul 16, 10:27am  

David 9 and hanera thanks for the links

17   mell   2013 Jul 16, 10:29am  

hanera says

http://www.washingtonpost.com/blogs/wonkblog/post/who-are-the-long-term-unemployed/2012/05/06/gIQAfCVs5T_blog.html

The older the folks the less likely to get a job once they lose a job. They're also harder to retrain.

And to add insult to injury their savings yield nothing thanks to the Fed so they have to become a riverboat stockmarket gambling addict or flip crap shacks at a high speed rate to keep up with inflation.

18   mell   2013 Jul 16, 10:32am  

APOCALYPSEFUCK is Shostakovich says

Say it loud and feed the Gatling. Cannibal Anarchy is here!

Realtors should focus on housing with command towers, in-house drones, large weaponry and high-tech control stations to be prepared for the full onslaught of cannibal anarchy. Your children will learn faster and become smarter if brought up in your own home under the rattling sound of gatling gunfire!

19   smaulgld   2013 Jul 16, 10:33am  

QE/stimulus ends up unevenly distributing economic resources and dollars based on political interest. Free markets will also have imbalances but nothing like those created by central planners

20   puhim   2013 Jul 16, 10:45am  

robertoaribas says

2. educating a high tech workforce...

Why?

All these jobs are being off-shored!
robertoaribas says

1. investing in high tech infrastructure...

Why corporations are shipping every full time position abroad?

21   puhim   2013 Jul 16, 10:47am  

smaulgld says

QE/stimulus ends up unevenly distributing economic resources and dollars based on political interest. Free markets will also have imbalances but nothing like those created by central planners

Oh it gets worse than that.

We no longer live in a free market economy, that's one thing Romney actually got right.

22   puhim   2013 Jul 16, 10:48am  

There is only one solution to being under-employed or unemployed, be self employed!

Figure it out.

23   New Renter   2013 Jul 17, 1:46pm  

puhim says

There is only one solution to being under-employed or unemployed, be self employed!

Figure it out.

Yes, because THAT shoe fits everyone!

24   xenogear3   2013 Jul 17, 2:01pm  

What is wrong with printing $80 billion per month?
I don't see any inflation. Fed should print $160 billion.

25   smaulgld   2013 Jul 26, 6:34am  

xeno gear-the Fed may end doing so.Instead of tapering down they may gradually increase QE.
They can't let Japan out do them!

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