Good thing we did that stimulus, huh? Update: Video
This chart keeps changing and not for the better.
Some analysis here at Michaels Comments. But what stuns me is not that the stimulus is not working … we warned you in February that shoveling money to Democrat public works projects does not stimulate the private sector where jobs are created. It’s not that the Democrats tried and succeed in panicking the public into thinking unless this porkapalooza passes the economy will get worse (the chat below pretty much blows that idea up). What stuns me is that after all of this these politicians actually expect us to trust them … again. These guys crack me up. Click to enlarge.
Oh and HotAir has some great video of Christina Romer spinning the numbers.
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Ed has some nice analysis of the numbers. As we have been saying for months, the numbers don’t keep going down. At some point they stop. The economy can’t go to zero. Well at least a market economy can’t go to zero. The question becomes one of, not how much less worse will it get and not even when will it turn (which the anchor in the video eventually asks). The real question is how much better, once the slide stops, can we expect the economy to get over the next two to three years. The answer of course is, given the out of control government debt and the ostracizing of the private sector, not much.
As is pointed out all over the place, unemployment is a lagging indicator. There are other signs that the economy is improving. I don't see how you can add a trillion dollars to an economy with out raising GDP. Jim maybe you can explain how that can possibly happen. But the issue is with the longevity of this stimulus. Will the injection of these monies generate the recycling of this money to get things stirring? I think that is really the question. So if the money was used for investment then I think it is possible, if the money was squandered to buy stuff like new cars for people and other goods(crap) then I think we see a deeper depression when the stimulus runs out.
In 1848-1850 there should have been a really bad depression, but it didn't happen. Why? because of the gold rush and the injection of about $25 trillion (adjusted for today's values) into our economy. The injection of dollars via the fed is really not much different than the gold rush.