Good morning. We are snowed. Its the Winter of the snow, its the type of Winter people remember from their childhood, Winter like the way it used to be.
CNN is addressing the new threats to the mildly resuscitated economy.
Oil spiking is an obvious one. However when Goldman Sachs points to the Republican spending proposals, then something is amuck.
Obama is up for re-election in 2012. He has overseen a jobless recovery, nevertheless recall that the economy was literally a hair away from a complete shutdown. That shutdown would have made the recession that we did experience look like a romp in the park. It was very serious indeed.
The Republicans came into power in January running on a theme of creating jobs. Well guess what, the Republicans have something else in mind. They are, as we know, setting out to dismantle as many of the hard earned democratically fought for institutions that ordinary people want and need. Let me offer two obvious examples - women's rights and unions.
I am going to cut to the chase here. The Republicans are not going to create jobs. They are going to sell Americans on a tough love fiscal fantasy and they will use the appropriate word twisting and FOX News to go about it. They are good at screwing the ordinary sheeple and convincing them its a good screwing as long as poor people or the other guy is getting thrown out in the cold.
Here is one, of many, larger reasons why they want to do this. The recovery now with Republican pushing will fall flat on its tush by the end of this year. Obama in turn gets painted as steering the economy back into crisis. Making sense yet?
One more thing, if you are involved in the equities market, the first warning flag from this blog is being raised. Pay attention, pay very close attention to the market in the next several months.
CNN: Economy faces new threats
Goldman Sachs put out a note Tuesday estimating that Republican spending proposals which would cut $61 billion between March and Sept. 30 could reduce economic growth by 1.5 to 2 percentage points in the second and third quarters.
End of QE2: Economists are also wondering what will happen to the economy once the Federal Reserve stops pumping $75 billion a month into the economy with its purchases of Treasuries, a policy known as quantitative easing, or QE2.
If the bull market that doubled the value of stocks in less than two years comes to a sudden halt, that would be another blow to the economy.