Be sure to take a look at the President’s Report on the Economy, in handy PDF size here . . .

Category: Markets

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

20 Responses to “Weekend Homework: President’s Report on the Economy”

  1. dead hobo says:

    Good read. I especially liked the part about free lunch at McDonalds for everyone who contribute all their credit card bonus points that can be converted to gift cards to the UST. Buy retail stocks NOW! Best Buy and WalMart will drive the tech boom to the next new high. Perhaps the Fed may want to get in on this and monetize the gift cards, selling them to China at a profit.


    Or look at the revenue enhancement plan called “Dollars For Ducks.” It’s around page 250. Broadly speaking, any web footed creature will meet the specification. Do you have geese fouling your property or chasing helpless children? Is there someone you don’t like who has a foot deformity? Or is there someone who you don’t like who owns a pond that has swimming foul that drive you insane just because you’re a little crazy anyway? Europe needs foie gras and they will pay a lot for it until their monetary system collapses in a couple of months. Time is of the essence. Bring your web footed friends to any Post Office and they will give you gift cards.


    Did you read the part quoting Obama that said “Look. Happy Days Are Here Again. I’m serious. Happy Times Are Upon Us. Unemployment is down. Retail is Up. We Will See 100,000 new jobs every month this year.”?

    Boom … Feb Jobs Report. Add 100,000 jobs plus, maybe, another +100,000 jobs in the Jan revision. Can you feel it!!? I can feel It!!! America is Back. Too bad about the EU and China’s empty cities of new office buildings and all the borrowed money used to finance them. Well, they’re foreigners. They don’t count.

  2. Transor Z says:

    The graphics theme in the charts is definitely “V”. Upside-down Vs and rightside-up Vs.

    Flip through the .pdf pages and you’ll see what I mean.

  3. jbruso says:

    I look forward to your summary. That’s way too much non-objective material for me to read.

  4. sysin3 says:

    uh, 300 pages of inanity and bovine scatology ? Nah, I don’t think so. But thanks for the invite anyway Barry ;-)

  5. StatArb says:

    This will surely hit NY Times best-seller list for Fiction . . . . . ” Hope-y ,Change-y “

  6. says:

    BO = Body Oder, what this report reeks of.

  7. constantnormal says:

    It certainly requires a strong stomach. A desire to read campaign speeches helps.

  8. constantnormal says:

    I’ll give them a little credit … at least I haven’t noticed any charts that span only a year or two, in order to omit the historical perspective. Also absent are the utterly worthless and deceptive “2nd derivative” charts (at least I have not seen any thus far).

    OTOH, the charts stretching forward to 2040 (and beyond) are simply ridiculous, a waste of pixels, as no one can reliably predict the economy (or any segment of it) even 5 years into the future, let alone 30 years or more. Pure nonsense. and it is no surprise that the most optimistic view possible is presented whenever the administration’s plans are projected (what “plans” there are). But that is to be expected, from any pol. Steely-eyed dispassionate objectivity is left for others — like thee and me :-)

  9. Pat G. says:

    I think they should start passing out whatever it is they’re smoking to the rest of us. That must be should good shit!! In the end, there is hope that the resulting anarchy will cause a world-wide regiem change.

  10. wunsacon says:

    I’m inspired by Cognos’s spirited defense of either the FIRE economy or subprime. (Forget which.) If I recall correctly, he said it was great either because subprime had some good years early on and/or the banksters paid a lot in taxes. With that in mind:

    >> Well at least one Industry is booming:

    Yes, lobbying increased. But, this wave of populist anger has gone far enough!

    The lobbying industry offers high-paying jobs. And those high-income earners spend it! They employ maître d’s, Lexus mechanics, private tutors, escorts, hair stylists, clergy, and so on and so forth. Finally, lobbyists pay a lot in taxes.

    Am I striking the right tone here? I suspect it’s not indignant enough.

  11. kmckellop says:

    Page 39
    “….Although economists will surely analyze this downturn
    extensively in the years to come, there is widespread consensus that its
    central precipitating factor was a boom and bust in ASSET PRICES, especially
    house prices……”

    They still don’t get it. Its origins are a psychologically driven runaway credit boom with a subsequent psychologically driven (deflationary) contracting credit bust. This only encourages me to press my short positions more. Until they face reality, the path of least resistance is down.

  12. DeDude says:

    kmckellop; they are talking “precipitating factor” your are talking “origins” – two different things. The intro political talk at least seem able to hit the fundamental problems. Problem is that with 41 GOPsters in the senate who want to see US fail (so they can blame BO and democrats), none of that insight can be converted to action.

  13. snapshot says:

    No! I am not reading that thing…Here are 7 minutes with Roubini…

    ….Growth recovery is going to be slow – accept it…

  14. kmckellop says:

    RE: DeDude: I see your point but I guess I’m an Austrian at heart. Until we let the global economic tire fully deflate we cannot begin to repair it. Attempting to pump large amounts of stimulus (credit) in to the system will not “re-flate” the world economies. The damage has already been done and until the governing bodies recognize this and “keep their (our) powder dry “ until we bottom, we will only prolong the enviable. There will be a time to rebuild as there was in post 1932.

  15. DeDude says:

    kmckellop; I understand the draw of the idea that you need to go all the way to the bottom before you can turn around; it’s one of those primal genetically encoded things. Problem is that although it “feels right” in the heart, it has no connection to reality. It’s all about “walking up stairs”. Regardless of where you start (first or fourty-six’th floor), your pace is the same. The deeper you sink the longer and further it will be to get back up. Otherwise, Zimbabwe should have an exploding economy. The reason the stimulus package worked and prevented a great depression is that all those people who did not lose their jobs because of it, are now paying their mortgages and spending money, rather than trashing their houses in anger before they get kicked out by the bank. Every worker makes about 125K of GDP (wealth) per year. Every unemployed person is a permanent loss of 125K of wealth/year, and that loss will never be recovered (he will not be making 250K of GDP when reemployed just because he didn’t do anything for a year before that).

  16. call me ahab says:

    well BR-

    it appears you can’t take a joke and removed my post- from Reason magazine no less-

    and here after I took the time to paste that link- seconds of my life down the drain-

    I’m quite distraught- well not really

  17. kmckellop says:

    RE: DeDude: IMHO we were due for an oversold bounce a year ago and now its over or nearly over and the longer term trend resumes. It doesn’t mater that a few $trillion were thrown at the collapsing world economies… the trend goes on. I will be a difference world at the bottom…with plenty of opportunities…it’s not the end of the world.

  18. DeDude says:

    kmckellop; I agree we were due for an oversold bounce a year ago, but that had to do with the chicken little investor world, not the real economy. In the real economy we were facing a down spiral of frozen credit, failed businesses, fired workers, less consumption, failed businesses etc, etc. The couple of trillions thrown at that problem turned what was the early stages of a classic world-wide full-blown decade-long depression, into a much less serious problem of a severe recession (probably a double dip if the GOPsters get their way). Any look at the data clearly show that stimulus made a huge break/difference in the trends. I agree that the bottom in investor world will have plenty of opportunities for vultures to pick bones, and that is fine with me as long as it is just one investor class vulture picking the bones of another investor class vulture. My problem is when it is the bones of real people who actually work for a living, that are being picked.

  19. beatstreet says:

    This proves our leader has a sense of humor. Cliff’s note please.