The Great Bush Economy is Falling Apart

Even his Wealthy Base may not be happy!

Published on June 6, 2006 By COL Gene In Politics

For some time I have pointed out that the economic growth that Bush has been claiming credit for is a mirage to the vast majority of Americans. Bush points to higher GDP, the stock market and healthy corporate profits. To the average American they see a DROP in Average weekly wage during the past two years and NO growth in the past five years. They now are faced with skyrocketing energy costs that are now showing up is sluggish sales at lower end stores. However the high end stores are doing a booming business because the wealthy are the only group that is not impacted by the higher energy prices.

Now the stock market is down over 600 points, and inflation is beginning to be a problem. There is an indication that the Fed will counter the inflation with even higher interest rates and the real estate market is cooling. Mortgage brokers have been lying off staff and the few bright lights that Bush has been pointing to are dimming. Projections for GDP growth for the balance of the year is much lower and consumer confidence has taken a nose dive.

All this with a Federal Budget Deficit in the $600 Billion per year range and the prospects for the future that is troubling at best. Airlines are in trouble, independent truckers are having real problems because of the higher fuel costs and the U S Auto makers continue to slide. The trade deficit is over $800 Billion with no prospect for a solution. Hanging over all the Bush policies is the disaster called Iraq.

Like so many issues with this administration, the consequences of the policies we have been following are coming to light. In time both the wealthy and not so wealthy Americans will understand what mistakes were made in the elections starting with 2000!

Comments (Page 1)

Island Dog

on Jun 06, 2006

Another useless Bush bashing thread. Do you even have a life?

Island Dog

on Jun 06, 2006

WASHINGTON (AP) -- Emerging from a year-end rut, the economy dashed ahead in the opening quarter of this year at a 5.3 percent pace, the fastest in 2 1/2 years. The new snapshot showed gross domestic product was even stronger during the January-to-March period than the 4.8 percent annual rate first estimated a month ago, the Commerce Department reported Thursday.

Gross domestic product measures the value of all goods and services produced within the United States and is considered the best barometer of the country's economic fitness.

The upgraded reading on GDP, based on more complete information, mostly reflected stronger U.S. exports and better inventory building by businesses.

It's great col when yo claim the economy is "falling apart" when the dow drops. However everytime I post the record highs the Dow set, you ignore it. Hypocrit.

singrdave

on Jun 06, 2006

Airlines are in trouble

AIRLINES ARE IN TROUBLE?! That's the best you can do?
Airlines have been "in trouble" for decades now. How many times has American, Delta, US Air, Northwest, Pan Am, and the like dove in and out of bankruptcy court like a swimming pool and begging, hat in hand, for federal bailouts? Remember Eastern Airlines, or TWA?

From the US Centennial of Flight Commission:
The deregulation of the American commercial aviation sector in 1978 had completely changed the face of civil aviation in the country.
The fate of three airlines, Continental, Eastern, and Pan Am, best exemplified the troubles that the major air services faced in the 1980s. By the early 1980s, Continental Airlines had, under the leadership of the colorful Robert F. Six, become a major presence in the American market. But while its dominating services across the Pacific remained profitable, its main operations in the western and southwestern United States were in danger after deregulation. When Six, one of the older generation of airline builders, retired in 1982, Continental was already in trouble. The threat came from one of the most controversial figures in American commercial aviation history—Frank Lorenzo.

Come on, airlines have been subject to market forces for decades now. They were much more imperiled in the 80's than they are today, if they are even at all.

Where do you get this tripe? Do you really believe this?

COL Gene

on Jun 06, 2006

U.S. consumer confidence falls in May
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The Conference Board reported Tuesday that U.S. consumer confidence fell in May because of rising gasoline prices.

The Consumer Confidence Index now stands at 103.2, down from 109.8 in April. The Present Situation Index decreased to 132.5 from 136.2. The Expectations Index fell to 83.7 from 92.3.

"Consumer confidence, which reached a four-year high in April, lost ground in May," says Lynn Franco, Director of The Conference Board Consumer Research Center. "Apprehension about the short-term outlook for the economy, the labor market and consumers' earning potential has driven the Expectations Index down to levels not seen since the aftermath of the hurricanes last summer."

Consumers' outlook for the next six months, which improved moderately in April, turned pessimistic in May. Those expecting business conditions to worsen increased to 13.2 percent from 9.3 percent. Those expecting business conditions to improve decreased to 16.5 percent from 17.3 percent. The outlook for the labor market was also less optimistic.

The Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households. The monthly survey is conducted for The Conference Board by TNS. TNS is the world's largest custom research company. The cutoff date for May's preliminary results was May 23.

INFLATION

Tugging oil lower was U.S. Federal Reserve chief Ben Bernanke's observation late on Monday that the U.S. central bank needed to remain vigilant on inflation risks even as the economy shifted to a slower pace of growth.

The comment fired speculation that U.S. interest rates have further to rise, stifling oil demand growth in world's biggest consumer by far.

"U.S. bond and stock markets fell after the Bernanke comment -- the main oil market drivers are now hedge funds and pension funds and their key battleground is equity and bond markets, so if they lose money there they like to take profits elsewhere such as on U.S. crude and metals," said Naohiro Niimura, vice president of derivatives at Mizuho Corporate Bank in Tokyo.

This is just a sample!!!!!

Island Dog

on Jun 06, 2006

This is just a sample!!!!!

And I have have "samples" of good things from the economy that you usually ignore. Hypocrit.

bakerstreet

on Jun 06, 2006

"To the average American they see a DROP in Average weekly wage during the past two years and NO growth in the past five years."

The slight drop in weekly wages is a sign of more entry-level jobs creation. People like you, who were bitching about unemployment, now bitch about that since you can't bitch about unemployment.

As for the NO growth thing, that's simply a lie. The first quarter of 2006 showed almost 5% growth alone. The Col, in the same breath, claims that the Fed is threatening to raise interest rates, which is what they do to SLOW the growth of the economy. Considering this is what, the 16th hike in a row, I'm wondering why the Col is surprised.

I've been seeing articles like this one for years now. OMG!!! THE ECONOMY IS TANKING, and yet it isn't, and it hasn't, and no matter how these cretins keep trying to frighten people they can't seem to. The main thing that has harmed consumer confidence lately is oil.

The Col, has lashed himself to the mast and he's just given up caring if the crusade does any good. He's determined to go down with his ship, so let him. He'll implode when Bush is gone, anyway, and there are no more dragons to slay...

singrdave

on Jun 06, 2006

U.S. consumer confidence fell in May because of rising gasoline prices.

U.S. Federal Reserve chief Ben Bernanke's observation late on Monday that the U.S. central bank needed to remain vigilant on inflation risks even as the economy shifted to a slower pace of growth.

This is just a sample!!!!!

A sample of consumer confidence. That has nothing whatsoever to do with the actual state of the economy. Or in your mind 50,000 lemmings can't be wrong?

And Bernanke's comments were based on a "slower pace of growth". That's still growth, dumbass.

OMG!!! THE ECONOMY IS TANKING

Yep, it must be. COL Gene thinks it is.

bakerstreet

on Jun 06, 2006

Actually I found that average earnings were up in May:

"Meanwhile, average hourly earnings were up by 1 cent in May to $16.62. This followed a gain of 10 cents in April, 5 cents in March and 7 cents in February."

Unemployment is at a 5 year low:

"However, the US unemployment rate dropped to 4.6 per cent last month, the lowest since the summer of 2001, the US Department of Labor reported on Friday.

A year earlier, the US unemployment rate stood at 5.1 per cent."

As for growth:

"US gross domestic product (GDP) growth for the first quarter of 2006 was 5.3 per cent, its fastest rate in nearly two and a half years, the Commerce Department said last month."

As for ineterest rates:

"However, some analysts are now expecting the Fed to keep rates unchanged when they meet again on June 29."

...but then, like I said, they've been throwing the BREAKS on to the economy for 16 straight meetings, so I doubt anyone would be surprised either way. I think it is funny how the Col is getting this desperate.

Island Dog

on Jun 06, 2006

Wow col, we are less than 10 posts in and you are being nailed again. Time to start another thread and abandon this one llike the previous two.

ParaTed2k

on Jun 06, 2006

Wait a minute, for the whole time you have been blogging you have sworn that there is no great economy and all the great indicators we have seen over the last few years are a farce... Now you are saying the great economy is falling apart? Even if you flimpsy arguments here actually held water... if the economy was never great, how is it falling apart?

COL Gene

on Jun 06, 2006

Another great day on the stock market. Oil at $75 a Barrel with gas over $3.00 per gallon. In FIVE years the Average Weekly Wage has not gone UP. That is a great economy if you are not the average person. In other words if you are part of the Bush Base, The Haves and Have-Mores you are doing fine. For the other 95% screw you. That is the Bush plan. Consumer confidence does play a BIG part on what people plan to spend! The jobs being created in this great Bush economy are paying 21% less then the jobs that were list from 2001-2003 and have fewer benefits. That is why about 70% of Americans are NOT happy with the job George is doing with the economy!

Add the Trade Deficit, Federal Deficit, Increasing interest rates and the continued loss of manufacturing jobs and the picture is just great. Where do the people on this Blog Site Live? Not in the United States in 2006.

ParaTed2k

on Jun 06, 2006

If it never was, how is it falling apart? You still can't live up to your own rhetoric.

That or you're just admitting that you are the pathetic liar we all know you to be.

bakerstreet

on Jun 06, 2006

There's really no point in dealing with this loon anymore. If anyone wants to believe him let them, they'd have to be as loony as him, or so ignorant of the facts that it won't matter anyway.

Enjoy wasting your time on a lame duck, Col. We'll be working on whipping Dem butt in 2008.

Island Dog

on Jun 06, 2006

For the other 95% screw you.

Yeah, col. Only 5% elected Bush.

I notice how ONCE AGAIN YOU IGNORED everything posted to you.

COL Gene

on Jun 06, 2006

If the election were held today, Bush would lose Big time!

All the bloggers on this site that support Bush act just like him-- When ever you can not refute what is said, you attack the person with some asinine statements. You have not disproved one thing I have said about this economy AND HOW POORLY THE VAST MAJORITY ARE DOING UNDER THE BUSH POLICIES!.

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