The Great Recession Drags On

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Published : July 29th, 2013
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Category : Crisis Watch

[Today’s edition of Rick’s Picks continues with a new format that replaces the customary daily essay with a question concerning some important issue of the day that readers can discuss and debate until the conversation grows tired. RA]

The Powers That Be would have us believe that the U.S. economy has been recovering for the last several years. In fact, for most Americans The Great Recession of 2007-09 never ended. The term “Great Recession” itself has come to be used mainly by pundits and news anchors who wish to imply that, more than three years after the recession officially ended, its effects are still very much with us. Growth has averaged less than 2% over that time – the feeblest recovery on record – and median household income has actually fallen by $2718, or 5%, in real terms.

This is especially troubling, considering the colossal size of the monetary and fiscal stimulus attempted so far. So feeble have been the results that even economists — as optimistic a bunch of useful idiots as the White House could have on its side — are predicting that second-quarter growth will be even slower than the anemic 1.8% achieved in Q1.

What say you, readers? Here are some questions to consider:

Was the recovery never more than a bunch of statistical lies, doomed from the start? And even if not, can it possibly take hold if payrolls and wages remain stagnant? What if the real estate market suffers a relapse, or – heaven forbid –  the stock market collapses?

Your thoughtful comments are welcome.

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Rick Ackerman is the editor of Rick’s Picks, a daily trading newsletter and intraday advisory packed with detailed strategies, fresh ideas and plain old horse sense.
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I'll take the bait.
Pundits and news anchors have a relatively steady income stream and a measure of job security. Ergo, their opinion is biased.

What is the standard for statistical significance? 2%, 5% deviation from the mean of the last 1 month, 6 months, a year, what?
What is the metric?

If wages are flat and there is no significant increase in the number of jobs, how can commerce increase?
What is the measure of commerce? Pricing, profits, quantity of goods, what?

Same scenario as the previous paragraph, how can home prices increase? And is that really desirable for the wanna-be homeowner? It is desirable to have escalating home prices when it come right down to it? Wouldn't lower housing costs permit increased purchasing of consumer goods? Is there really a shortage of real estate?

What is the significance of a stock market collapse? Does it really infer the true value is less than the true value? Imagine an auction with an ugly purple recliner and several deranged bidders just must have it to go with their purple couch. Does the run-amok bidding and eventual sale prove true market value? For how many? One, ten or ten million?

I think it was Nietzsche that said something to the effect of, "Insanity is rare in individuals but the rule of people in groups." The majority of people are herd beasts.

Perhaps folks should think for themselves. Encourage intellectual discourse. And seek alternative viewpoints. Weigh the evidence. Reject your personal biases.
"Beam me up Scotty, there is no intelligent life on this planet."
Absence of evidence is NOT evidence of absence. How can one prove a negative?

Perhaps there is a reason I'm a prolific poster. Or maybe I'm just insane. Ever see the movie, "Catch 22"?
Y'all have a nice evening now.
Latest comment posted for this article
I'll take the bait. Pundits and news anchors have a relatively steady income stream and a measure of job security. Ergo, their opinion is biased. What is the standard for statistical significance? 2%, 5% deviation from the mean of the last 1 month, 6 mo  Read more
overtheedge - 7/29/2013 at 6:42 AM GMT
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