On Apr 25, 3:39=A0pm, Vide...@[EMAIL PROTECTED]
wrote:
> laissez-faire free market conservative president is telling people to
> go out and get jobs -- and there are no jobs, "This is going to be one
> of the worst economic downturns since the Great Depression," mirroring
> the 1930's
The idiot is mostly telling people to go out get Wal-Mart jobs.
Which is mostly why people are working on more A.I+++ Robot, Drone,
DNA, Internet, nanotech, and second moon landing jobs for the
imbecile.
>
> http://biz.yahoo.com/cnbc/080425/24311464.html
>
> =A0free markets have failed america and the world miserably. stiglitz is
> just letting us know the obvious, its all in the demand side.
>
> Nobel Winner Stiglitz: US Facing Long Recession
> Friday April 25, 12:16 pm ET
>
> The U.S. economy is already in recession -- and may echo the 1930s,
> Nobel Laureate Joseph Stiglitz said Friday.
>
> "The big question is: how will the government respond?" said Stiglitz,
> in an interview with CNBC. Stiglitz, a Columbia University professor
> and 2001 winner of the Nobel prize, detailed his bleak outlook for the
> American economy.
> ADVERTISEMENT
>
> "This is going to be one of the worst economic downturns since the
> Great Depression," said Stiglitz.
> He explained that main cause of the current situation is historically
> unique -- and thus is befuddling those charged with creating
> solutions.
> Other downturns were primarily caused by excesses in inventories or
> inflation; but this slowdown is due to the condition of "badly
> impaired" banks and financial entities, which are unwilling and/or
> unable to lend capital -- stymieing the very borrowers who usually
> drive the country back to vitality, Stiglitz said. And the Federal
> Reserve may have used up its ammunition -- and the faith investors and
> planners have put in it.
>
> "[The Fed] will be between a rock and hard place. And we're not over-
> worrying about credit. But [simultaneously], we need to start worrying
> about the real sector," he said.
> And if inflation wasn't the prime recession cause, it's still a
> menace. The professor points to the two-pronged danger of high oil
> prices joined by climbing food prices, harming businesses and scaring
> consumers.
> "Oil is particularly bad," as it means that more U.S. dollars "will be
> going abroad," he said.
> The housing downturn is an even worse economic factor than casual
> observers realized, Stiglitz said. He explained that during the real
> estate boom, Americans were able to withdraw billions of dollars from
> their home equity.
> "[But] with housing prices coming down, it's going to be difficult to
> do that anymore," he said -- drying up a spending source. And within
> that problem, still another complication: people typically spent the
> money they drew off their home equity on consumption, rather than
> investment -- garnering no return on the spending.
> "The savings rate as we go into the recession is zero. Which means
> [savings] will go up, " he said -- decreasing consumer spending and
> weakening retail further.
>
> What about the government stimulus package?
> "The Bush Administration's response is too little, too late -- and
> very badly designed," he declared. The amount ostensibly being infused
> into the economy by tax rebate checks will be a "drop in the bucket"
> compared to the money being held back and siphoned out by the factors
> he mentioned.
> "If you really wanted to stimulate the economy, increase unemployment
> insurance," he suggested.
> "The president is telling people to go out and get jobs -- and there
> are no jobs for them," he said.
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