Worst Recovery Ever

Shocking absolutely no one who has been paying attention:

 

It’s Official: Worst. Recovery. EVER

If there was any debate whether the Fed’s policies have helped the economy or just the market (and specifically the Bernanke-targeted Russell 2000), the following two charts will end any and all debate. As the following chart from the St Louis Fed shows, as of the just completed quarter, US GDP “growth” since the “recovery” is now the worst in US history, having just dipped below the heretofore lowest on record.

How About That Recovery?

How About That Recovery?

 

 

 

 

 

 

 

 

 

 

 

It’s the economy, stupid.

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  • 914

    I guess it isn’t Bush’s fault anymore.

    • http://wizbangblog.com/author/rodney-graves/ Rodney G. Graves

      The “recovery” certainly wasn’t.

    • herddog505

      Please. It is and ALWAYS WILL BE Bush’ s fault.

  • GarandFan

    “It’s the economy, stupid.”

    Actually it’s the STUPID people running the economy……into the ground.

  • Commander_Chico

    American economy ain’t never really coming back. It’s that “giant sucking sound” Ross Perot warned about, low wages, declining domestic demand, and debt.

    • jim_m

      idiot. It grew under Clinton and Bush AFTER NAFTA was signed. The economy did not collapse because of NAFTA. High wages for low skill work is unsustainable and only the grossly ignorant think that such a thing can go on forever.

      That which cannot go on forever, won’t.

      • http://wizbangblog.com/author/rodney-graves/ Rodney G. Graves

        Idiot / soi disant cognoscenti, interchangeable terms?

  • UOG

    It may be “the economy, stupid” but the lame-ass vacationer just got re-elected and sworn in. Well, at least we know we’re half way through the Obama presidency.

  • ackwired

    Over one quadrillion dollars in fraudulent debt take quite a while to handle. It may not be handled in our lifetime. We may just have to proceed with our financial companies carrying it as fraudulent assets. I’m sure that we can’t bust enough local banks to pay it off, and those fraudulent assets will continue to make the remaining banks hesitant to loan.

    • http://wizbangblog.com/author/rodney-graves/ Rodney G. Graves

      [Citation Required]

      • Commander_Chico

        That is a well-known figure among the cognoscenti.

        http://www.dailyfinance.com/2010/06/09/risk-quadrillion-derivatives-market-gdp/

        http://www.zerohedge.com/contributed/coming-derivatives-crisis-could-destroy-entire-global-financial-system

        Derivatives traded on real assets exceeded the value of those assets by orders of magnitude.

        Just interest rate bets alone have been more than $500 trillion:

        http://www.zerohedge.com/news/lie-bor-unwinds-just-how-much-stake

        Which is why the whole “ghetto real estate caused the world financial system to crash” idea is so ignorant and ridiculous.

        • http://wizbangblog.com/author/rodney-graves/ Rodney G. Graves

          Well, the next time we need the opinion of the soi disant “cognoscenti”, we know where to send the man with the shovel.

          • jim_m

            I tend to dismiss the views of someone who doesn’t understand what average means.

            What Chico does not understand is that the value of bonds is based on future cash flows. While a bond has a value today, it only has that value if someone wants to buy it and they pay a portion of the value which is based on the present value of the future cash stream. TO value all bonds at today’s price is an inappropriate method of determining “market capitalization” the way they are doing it.

            Bonds will ultimately be paid out with money that is also used for other purposes. What some of Chico’s links are saying that if you tried to liquidate all stocks and bonds etc, the value right today would be 1.4 Quadrillion dollars. The number is entirely unrealistic because the current value of those instruments presupposes that there is money to purchase them. If that money is being used elsewhere for other purposes then the present value of those financial instruments decreases.

            Chico’s number is not real.

          • Commander_Chico

            Listen, you dolt, you’re the one who does not understand statistical distribution, or derivatives.

            First, within a large group being measured for something like height, or intelligence, many many people will be exactly average, at the median by any measurable standard. That means that the number of those below or above average is not exactly half, but somewhat less than half. Get it?

            Second, you have no idea what the derivatives ackwired and I were talking about are. They are not “stocks and bonds.”

          • http://wizbangblog.com/author/rodney-graves/ Rodney G. Graves

            So sayeth the soi disant “cognoscenti” to snickers throughout the audience…

          • jim_m

            The zerohedge link was talking about he total market cap pf bonds and stocks and other instruments combined and arguing that the market caps were unsustainable. I addressed the fact hat they were making a ridiculous argument. I normally like zerohedge, but in this case they are off base.

      • ackwired

        The only place that I have seen the total fraudulent debt number is in a private subscription investment advice letter, which, of course, is not in the public domain. If you think about the number of houses in default, the number sounds quite reasonable. The mortgages were sliced and diced and sold to financial institutions. Most are still held as assets by the large financial companies. What part of this is not obvious?

  • Paul Hooson

    Certainly this has been a very slow recovery. Yet, the stock market is nearing the magic 14,000 mark. Wall Street tends to run about six months ahead of the actual economic conditions, one strong sign of a strong and growing economic recovery. Secondly, the weekly jobless figures only continue to improve as well. Third, the housing market is also showing continued growth and revival as well.

    Sure you can shop for whatever selected indicator to attempt to prove whatever you want as a premise here. But, the larger and more important indicators are looking very positive here, and that’s good news for all Americans.

    • herddog505

      1. What’s “magic” about 14000? Any progress is welcome, but (as Barry told us back when it was < 10000) the stock market isn't the end-all, be-all. How many Americans are out of work or "underemployed"?

      2. Strong and growing? Yeah, it is… at one of the most anemic rates on record. And that' s the point.

    • http://wizbangblog.com/author/rodney-graves/ Rodney G. Graves

      This is now documented to be the worst recovery. Not very slow, The Worst Ever.

      • 914

        Match’s his presidential credentials..

      • Paul Hooson

        The climb back from the Great Depression was actually the slowest recovery ever. This economic slowdown is the worst since that one, so required a slow climb back as well. Remember, Congress also scaled back many of the jobs programs and other attempts of this administration to grow jobs. Despite all of this obstruction of the economy by Congress, it’s remarkable that even this much progress has been made to revive the economy.

        The big news on all of the main news tonight, was all of the economic good news and the strength of the stock market.

        I don’t personally care whether an economic rebound happens under a Democrat or a Republican, but it’s just good news to hear that things might well be getting better. That’s welcome news.

        • http://wizbangblog.com/author/rodney-graves/ Rodney G. Graves

          That’s a commonly held position for which we don’t have the same kind of hard data we’ve had since WWII.

    • jim_m

      Part of that stock market increase is due to money supply expansion. It isn’t all real growth it is a manifestation of the weakening of the dollar.

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