The POTUS sure is touchy,isn't he?Momma apparently didn't instill much of a backbone in him because he can't take a lick of criticism.He has his attack dogs going around the clock attempting to discredit anyone not supporting his policies.
Today we got a GDP rate of 3.5% for 20093Q meaning the recession has ended.Obama wants his stimulus to get the credit for this and we hear opposing arguments against it.I say chill out,my man,you can have the credit.And the blame.And that's the problem.
As time goes along,we will hear more about the GDP in greater detail and learn more specifics on what entailed it to rise.Normally,it's good news that the GDP rose 3.5%.The average increase is around 3% per quarter,so this exceeds average.However,the devil is in the details.
Cash for clunkers.1st time homebuyer credit.Refilling of inventories.These are the main reasons.The clunker program is over.The inventories have been restored to the new lower levels.The homebuyer credit will live on and be expanded to include existing homeowners.This one may last awhile because it's popular with the public.
This is why we will see the double dip next year.Band-aid approaches to economics.Just as the stock market rises on earnings reports that reflect downsized companies.There is the correction phase and then it's gone.States that are balancing budgets with federal stimulus money.Gone next year.
Unemployment extensions will end at some point.Interest rates must rise to check inflation.Prices will rise as cap and tax costs will be passed on to consumers.Prices will rise as health care costs are paid for by higher taxes.Commodities prices will continue to rise as the dollar slowly continues it's decline.Consumer buying power will continue to fall for all the above reasons as well as overall wage decreases.The VAT tax is yet to come.Unemployment will stagnate.Home prices will stay depressed.On and on and on.
So Obama can take credit today,but his bill hasn't come due yet and he won't be able to blame that on Bush once he's taken credit for saving the economy.If it dips again,and it surely will,it's all on him.More to come...