Happy Days Are Here Again . . .

The Fed:

Information received since the Federal Open Market Committee met in June indicates that the pace of recovery in output and employment has slowed in recent months. Household spending is increasing gradually, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit. Business spending on equipment and software is rising; however, investment in nonresidential structures continues to be weak and employers remain reluctant to add to payrolls. Housing starts remain at a depressed level. Bank lending has continued to contract. Nonetheless, the Committee anticipates a gradual return to higher levels of resource utilization in a context of price stability, although the pace of economic recovery is likely to be more modest in the near term than had been anticipated.

Measures of underlying inflation have trended lower in recent quarters and, with substantial resource slack continuing to restrain cost pressures and longer-term inflation expectations stable, inflation is likely to be subdued for some time.

Snarky title reflects my views only

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    Not only are we not in recovery (5.00 / 1) (#1)
    by Cream City on Tue Aug 10, 2010 at 03:47:04 PM EST
    but when recovery ever comes, it will be slower than anything seen before.  I read today of the huge debt in my state to the federal government for its loans to the state to pay the constantly extended unemployment comp.

    I had not realized that Congress voting funds actually was only voting loans to the states, already saddled with huge debt from trying to keep up with mandates from but not funded by the feds in so many other matters.

    This debt of the state and local governments, so that the feds can keep the war costs and more soaring, seems to be a fatal formula to me.  Not at all the way that the New Deal did it.  This is doom.

    the incremental approach (5.00 / 1) (#2)
    by jeffinalabama on Tue Aug 10, 2010 at 03:50:19 PM EST
    that's transpiring is going to leave us with our own lost decade. Too bad, since the results of Japan were there for analysis.

    Some sectors are booming (5.00 / 2) (#3)
    by Edger on Tue Aug 10, 2010 at 06:37:32 PM EST
    The U.S. spends more for war annually than all state governments combined spend for the health, education, welfare, and safety of 308 million Americans.

    Joseph Henchman, director of state projects for the Tax Foundation of Washington, D.C., says the states collected a total of $781 billion in taxes in 2008.

    For a rough comparison, according to Wikipedia data, the total budget for defense in fiscal year 2010 will be at least $880 billion and could possibly top $1 trillion. That's more than all the state governments collect.

    Henchman says all American local governments combined (cities, counties, etc.) collect about $500 billion in taxes. Add that to total state tax take and you get over $1.3 trillion. This means Uncle Sam's Pentagon is sopping up nearly as much money as all state, county, city, and other governmental units spend to run the country.

    If the Pentagon figure of $1 trillion is somewhat less than all other taxing authorities, keep in mind the FBI, the various intelligence agencies, the VA, the National Institutes of Health (biological warfare) are also spending on war-related activities.

    It'll trickle down if we hold our breath for a few decades, no?

    And of course Wall Street (none / 0) (#4)
    by Edger on Tue Aug 10, 2010 at 07:27:59 PM EST
    is doing great, with the 18 or so trillion dollars Obama and Geithner gave them to bail them out of their self created problems over mortgage backed securities, instead of realizing that paying off every mortgage, subprime or not in the United States for only about 12 trillion might have been a not half bad "stimulus" of the consumer driven economy.

    But that 18 or so trillion will trickle back down eventually too, no?


    Yes (5.00 / 1) (#5)
    by squeaky on Tue Aug 10, 2010 at 07:30:08 PM EST
    I could use a bit of trickle right about now...

    Doesn't that (none / 0) (#6)
    by Edger on Tue Aug 10, 2010 at 07:31:55 PM EST
    golden shower trickling down from the top 1 percenters help?

    ummm (none / 0) (#7)
    by squeaky on Tue Aug 10, 2010 at 07:35:26 PM EST

    Have you explained that (none / 0) (#8)
    by Edger on Tue Aug 10, 2010 at 07:36:54 PM EST
    to Robert Gibbs??

    Who? (none / 0) (#9)
    by squeaky on Tue Aug 10, 2010 at 07:39:37 PM EST

    Heh. Well, ummm, hmmm.... (none / 0) (#10)
    by Edger on Tue Aug 10, 2010 at 07:43:52 PM EST
    Maybe call Gibbs boss and tell him that he's lost a customer till he straightens out his employees and his whole operation?

    OK (none / 0) (#11)
    by squeaky on Tue Aug 10, 2010 at 07:54:19 PM EST
    Someone in the other thread suggested that I would be a good replacement for Gibbs... Is he a left handed pitcher? Pianist or painter?

    I think that they were trying to give me a compliment.... lol


    As far as I know (none / 0) (#12)
    by Edger on Tue Aug 10, 2010 at 08:04:44 PM EST
    he just plays everyone.