The Obama administration is still pushing the "Myth" of economic recovery and that the recession is past us and certain "Brain Dead" reporters and economic gurus all spout the Obama party line that "look the markets are up, business is humming along and things are getting better!"
Looking at various main stream media stories on the economy it almost looks like the cold war era when Pravda was telling Russians that everything was just fine. You can go on TV and say everything is fine but the numbers tell an entirely different story. It makes one wonder if Rahm Emanuel and David Axlerod are writing the news copy for them.
July retail sales figure were not the .7 percent Obama and the Fed expected but rather a .1 percent decrease. In spite of the cash for clunkers program. Infusing millions into the market. Take those monies out of the equation and the retail sales would have fell by .6 percent.
The truth is that While the Obama administration tries to manipulate public opinion by using the U3 unemployment number, not the actual figures of those whose unemployement have run out or underemployment which is 16 percent and increasing daily as more people fall off the unemployment numbers as their benefits run out!
The facts are total consumer purchasing power, based on the number of hours worked times the average wage, has declined to a level that makes it virtually impossible have economic growth.
Those who are working, after seeing already massive cuts in employment and slower sales, are realizing that they could be next and are banking every dollar they can for what may be a long period of unemployment. In fact the Cash for Clunker program may REALLY slow the retail economic engine as many Americana now have a large car payments and higher insurance payments due to their new car purchase than they had before.
Wall Street may have been feeding the Obama recovery myth as well. Many are beginning to realize that the actual increase in profits are not due to real sales or recovery but rather by doing what businesses do in hard times, cutting staff to maintain a profit. This is a unsustainable method of creating profit and the current market number reflect the same kind of false market we had before the recession hit. Not based on any "real world" value but rather carefully concocted balance sheets that create profits due to firing people and cutting overhead.
And the foreclosure situation reinforces the fact the economy is still headed downhill, Moody Economy.com estimates that 1.8 million borrowers will lose their homes this year up from the 1.4 million borrowers last year. This new round of foreclousure filings are not the investors who walked away from their investment properties or those who bought more homes than they could afford with subprime loans. This round of foreclosures are mostly middle and upper-middle class people who lost a job and simply cannot cover their bills with current unemployment benefits. Even those who do take a job, find they are making 30-40 percent less than they made in their old job.
Another fact, last week according to the office of Administrative Courts, Personal bankruptcy filings reached 1.25 million in the year ending June 30, up 34 percent from the year ago . 126,434 consumers filed for bankruptcy protection in July, the highest monthly total since the new law was implemented, according to the American Bankruptcy Institute.
Deutsche Bank issued a new report that indicates that half of US mortgage- holders will be "underwater" or "upside down" on their loans by 2011
Obama and his administrations "myth" of an economic turnaround are just that, a myth. In fact some economists and a majority of the American Public, are now coming to the realizations that Obama's policies are actually driving the economy into a deeper abyss.
Obam'as attempt to gain control of the only profitable part of the economy, health care, seemed doomed to failure as Americans put increasing pressure on congress to scrap the whole idea, understanding that we cannot sustain this level of deficit spending.
In fact Obama appears to be reaching for the George Bush playbook by calling for escalation in Afghanistan., maybe he realized that Bush was able to artificially prop up the economy by war materials production and expensive contracts to Haliburton.
Pro Obama economists continue to talk about "leading indicators" or "jobless recovery", saying they can predict with accuracy that the economy has turned a corner, yet everyday new numbers tell the opposite. Obama, and his policies, are not working. The American economy is not like previous economies that had a recession. We are a consumer driven economy, we don't build things anymore and what we do build we don't build well which is why many of those cash for clunker dollars subsidized foreign car manufacturers.
It is over for Obama, he is not smarter than the American people, a trait he shares with George Bush and Richard Nixon. The American consumer, faced with an uncertain future, impending huge deficits, and government intervention into every aspect of our lives under Obama is done. We are not buying, we are not spending, we are saving. Hopefully to hold out until Obama is out of office in 2012. Obama's declining popularity numbers area leading indicator not Obamas "myth" of economic recovery.