Where is the US economy headed?

Herman Cain doesn't have any stance on the economy, although it's one of the most important issue of our day - called "lack of jobs" and the "debt ceiling."

I can tell you this much. Herman is not in favor of raising taxes and more spending as Obama favors.

Says the fool that doesn't understand the ripple effect of not raising the US debt limit.

It would cause mortgage prices to go up and further damage the housing market. But you would simply use that as an excuse to blame Obama, i would bet.

The Obama ripple effect has already set off a a few waves of economic destruction that have not hit shore yet.

Has okie explained what he means by the "ripple effect?" I'll bet anyone dollars to donuts he has it wrong.

Ci is rightfully more concerned with the wrinkle effect... he
hasn't had time to factor in Obama's economic ripple effect.

After 4 bottles of Ripple

Obama's Ripple Effect

Start becoming informed, imposter. Dare to remove your head from the sand!!

Gold just hit $1,600.

That is all.

Downgrading our Obama economy

By Neal Boortz

At the end of last week, Goldman Sachs dropped a bomb that does not bode well for reelection chances of The Chosen One. It goes a little something like this …

Following another week of weak economic data, we have cut our estimates for real GDP growth in the second and third quarter of 2011 to 1.5% and 2.5%, respectively, from 2% and 3.25%.

Our forecasts for Q4 and 2012 are under review, but even excluding any further changes we now expect the unemployment rate to come down only modestly to 8.75% at the end of 2012 …

But the slowdown of recent months goes well beyond what can be explained with these temporary effects. … final demand growth has slowed to a pace that is typically only seen in recessions. .. Moreover, if the economy returns to recession—not our forecast, but clearly a possibility given the recent numbers …

So much for keeping our unemployment rate under 8% if we passed his grand stimulus plan. This is also coupled with news of the worst consumer confidence since March 2009. A Thomson Reuters/University of Michigan index of consumer confidence fell to 63.8, which is the lowest level since the early months of Obama’s presidency. Of course, Bloomberg News reported this fall in confidence as “unexpected.”

I know you’ve heard this before .. but this is the worst recovery from a recession since World War II. In the past we’ve relied on growth in the private sector to bring us out of recessions. Government stimulus programs have NEVER done the job. So what’s the big difference this time? The difference is an anti-capitalist named Barack Obama in the White House and a Democrat Party that has become even more radicalized.

Since being sworn in Obama has done absolutely NOTHING that would cause a small businessman – the ones we depend on for new jobs – to say “Now THAT’S more like it! Now let’s get this business going!”

At this point we’re not going to see business become energized until after the 2012 presidential election – and the defeat of Barack Obama.

But the problems are much more deep-seated than Obama/Bush/Clinton..>..>..>..>/ Washington.

In a "holding a tiger by the tail" competition it's only the nuances of technique the expert judges consider. It isn't whether to have tiger tail-holding competitions.

Have you thought of allowing yourselves to be a little easier to manage? Are you all scared of being the only one in your social circle to grant your leaders such a privilege?

Wouldn't it be nice if Mr Obama could put his feet up and say that everything is running like a well oiled clock? And what prevents such a happy outcome is you lot. And us lot here. Our PM has bunch of tigers by the tail. One of them is foaming at the mouth and looking rabid.

The "panic" in San Francisco, the flower power capital, what happened to that?, suggests that "staying home" is only any good as a novelty. Two days max.

okie, This is from Herman Cain's web site (today):

The market was ran up tremendously by loose money from the Fed and loose regulation of the banks by Bush. Now that this has crashed, you have your 'bad housing market.' It has nothing to do with Obama at all.



Yah, what you describe here - flipping - is one of the prime reasons the housing market got so inflated and out of control. This won't come back for a long, long time, because it was an inflated situation, not true growth or productivity.

"The market" hasn't stopped them from being able to do what you describe. NORMALCY does. When the housing market isn't the wild, wild west - as it was under Bush - you can't make enough money off of stuff like this.

Cycloptichorn

Yes Cyclo but if the "loose money" is what runs the markets up you have a circularity on your hands. Which makes things easy. It's not like having a tiger by the tail. It's almost the opposite.

okie, I listened to Cain speak on the economy, and his analogy was based on a "train." He said our economy doesn't have an "engine." He goes on about how he would improve our economy.
1. 25% corporate tax break. This one belongs on the laffer curve; US corporations pay the least of all developed countries, but our economy is not "improving."
2. No tax on capital gains. This is really silly; this is a statement with no solution to our economy. Our capital gains taxes have remained the same since 2003 when GW Bush was in office, but our economy collapsed. This is not Obama's fault.
3. Tax offshore profits. Here's another statement without much depth, but those in the crowd ate it up without thinking. The reason companies have off-shored many of their production is not the "taxes." It's the lower cost of labor. Another stupid statement without any basis in economics.

I quit listening after the third initiative that only proved he doesn't understand economics - nor the history of taxation in this country.

Only the tea partiers think this has substance; all out of ignorance.

okie, That you believe what he says has economic sense shows how ignorant you are!

Another mistake in an extremely long list of mistakes made by the Obama administration.

Less than a month ago when prices were on the decline PrezBO tapped our Strategic Petroleum Reserve in an effort to lower fuel prices in this country... prices started rising as soon as he released oil from our reserve and they continue to rise. You can expect nothing but economic mistakes from the Obama administration because none of them have any business sense and all of them lack common sense.

The US economy is only going to get worse and it won't get any better until the voters purge our system of Obama and his ilk.

Your conclusions about the release of oil from the SPR and the effect on prices are naive at best and at worst are wrong. There was a story on Fox about a week ago talking about oil prices. Did you see it?

No. Your trust in Obama and believing that he has a ******* clue is naive.

I have kind of forgotten about the release of oil from the SPR which was announced on June 23rd. I found a couple of articles on CNN and Fox, which I invited H2O to look at. To no avail. I also found a few very dry articles from oil industry watchers.
A few bullet points:
* Oil today is poised to close at $96/bbl vs $95.40 on 6/23. Down $1.30/bbl.
* Oil fell 5% immediately after the Obama release of 30mn barrels matched by an equal amount from some other oil producing countries.
* For us, 30mn is 1 and 1/2 days consumption.
* Since then oil has fluctuated be $90 and $100/bbl.
* Did you know that (per Fox News on 7/12) the 30mn bbls has yet to actually hit the market?
* Some analysts believe the release was purely political, while others think it was to warn those who speculate excessively that they need to be aware that this was an added risk for them.
* In 1995, the U.S. released 17mn bbls and prices fell immediately. 11mn bbls were released in 2005 and prices fell by a mere 3%.
* Prices of gas typically rise between the 4th of July and Labor Day. That may happen this year, but the driving forces are economic uncertainty here, in Europe and in China. The value of the dollar has been fluctuating. Oil rises if the dollar falls and falls if the dollar rises. I see the dollar as rising, particularly if we get to agreement on the deficit/debt battle.