Skip to main content

Did the recession ever really go away?

"Their stupid and profligate stimulus did not work." 

That's the verdict of Jeffrey Tucker's new Mises.org article, "Did the Recession Ever Really Go Away?".

As Tucker points out, the massive stimulus programs and bailouts of the past three years (under Bush and Obama) haven't amounted to a hill of beans in terms of actual economic improvement. 

Has the average American's lot in life been improved due to these measures? No, but they have helped save some politically-connected institutions (banks, unions, insurers) and given the appearance of government doing something to "help" matters. 

Here's an excerpt from that piece: 
"The screaming pleas from the political class in 2008 weren't really about finding a cure. They were about saving the top players (banks, unions, insurers) in a system that was built on illusion.
According to official dating, the recession lasted only 18 months, and then recovery began. The belief that we are recovered then became the new illusion, mostly fostered by the injection of phony money and massive spending built on debt. As college grads faced a hostile labor market, as retailers dramatically shrunk inventories, as businesses have closed and closed, as income has shrunk, and as prices have pushed higher and higher, the feeling on the part of most people has been: something is not right...". 
Do have a look at the full piece. You'll find some skillfully woven intro paragraphs, thoughts on why the stimulus simply won't work, and a list of suggested reading material on Austrian economic principles and freedom. Pass it on.

Popular posts from this blog

Nasdaq credit rating junked.

S&P cut Nasdaq's credit rating to junk status citing debt burdens and its questionable strategy to buy a controlling interest in the London Stock Exchange. Financial Times reported that the exchange's counterparty credit & bank loan rating were lowered fromm BBB- (lowest investment grade rating) to BB+. The change will increase Nasdaq's borrowing costs should it wish to pursue aquisition targets. For an earlier look at the exchange consolidation trend that brought about Nasdaq's push for a stake in the LSE, please see "Exchange fever" .

Clean Money - John Rubino: Book review

Clean Money by John Rubino 274 pages. Hoboken, New Jersey John Wiley & Sons. 2009. 1st Edition. The bouyant stock market environment of the past several years is gone, and the financial wreckage of 2008 is still sharp in our minds as a new year starts to unfold. Given the recent across-the-board-declines in global stock markets (and most asset classes) that have left many investors shell-shocked, you might wonder if there is any good reason to consider the merits of a hot new investment theme, such as clean energy. However, we shouldn't be too hasty to write off all future stock investments. After all, the market declines of 2008 may continue into 2009, but they may also leave interesting investment opportunities in their wake. Which brings us to the subject of this review. John Rubino, author and editor of GreenStockInvesting.com , recently released a new book on renewable energy and clean-tech investing entitled, Clean Money: Picking Winners in the Green Tech Boom . In Clean ...

Jesse Livermore: How to Trade in Stocks (1940 Ed. E-book)

If you've been around markets for any length of time, you've probably heard of 20th century supertrader, Jesse Livermore . Today we're highlighting his rare 1940 work, How to Trade in Stocks (ebook, pdf). But first, a brief overview of Livermore's life and trading career (bio from Jesse Livermore's Wikipedia entry). "During his lifetime, Livermore gained and lost several multi-million dollar fortunes. Most notably, he was worth $3 million and $100 million after the 1907 and 1929 market crashes, respectively. He subsequently lost both fortunes. Apart from his success as a securities speculator, Livermore left traders a working philosophy for trading securities that emphasizes increasing the size of one's position as it goes in the right direction and cutting losses quickly. Ironically, Livermore sometimes did not follow his rules strictly. He claimed that lack of adherence to his own rules was the main reason for his losses after making his 1907 and...