You might recall an article I wrote a few month ago, discussing ridiculous terminology that has been embraced by every sheep on earth; double-dip recession. See here to refresh your memory.
As part of my argument that the recession had not ended, I pointed to the fact that the NBER had not yet concluded that the recession had ended.
Well, this has changed recently. I'm not going to say much here. The title says it all.
It's clear to me that the NBER has given into pressures from the White House to make bogus claims that the recession ended in June 2009.
Remember, this is an election year. With just two months remaining before facing voters, democrats are shaking in their pants because there hasn't been a single bit of good news or positive developments since Obama has been in office. Americans should be accustomed to that. Bush didn't do a damn thing for the people as well.
For Americans, it doesn't really matter who wins these elections because the Washington mafia always yields the same results that empower corporate America at the expense of the people.
Understand that, while I view the NBER as more credible than other economic organizations, the fact is that they still bow down to Washington and the Federal Reserve because it's made up of academic economists, all with strong ties to Washington and the Federal Reserve.
Have a look at the list of researchers and see where they are from. If you have a good deal of time on your hands, you might want to research their ties more closely. http://www.nber.org/vitae.html
Never mind all of the stimulus packages jettisoned into the economy in 2009. The fact is that even if this wasteful use of tax dollars did in fact end the recession, isn't this similar to cheating? After all, this money has to be paid off eventually. You can never claim the economy has healed if it has not healed on its own or by instituting the types of fundamental changes that were responsible for the problems to begin with. So, ask yourself these questions...
Has free trade been restructured?
Will Wall Street reform be effective?
Does America have an affordable healthcare system?
By now, you should realize the answer to each of these three questions is NO.
Despite adding trillions to the national debt, the actions taken by Washington, the U.S. Treasury and Federal Reserve did not put an end to the recession by June 2009. The longest recession since the longest during the Great Depression is alive and well.
In fact, it's possible this recession will eclipse the 43-month recession during the Great Depression.
Now that most of the stimulus funds have been spent, the economy is getting worse. Of course, many Americans will accept what the claims made by the NBER without bothering to recall that these same economists missed much the collapse until after it occurred.
As I have discussed since the ARRA was passed in early 2009, I can guarantee you we will see many more stimulus packages over the next several years. And each time, as tax dollars are spent, Washington will claim that the recession ended.
This recession will end. But it hasn't yet. Even when it does end, you can expect a few more recessions over the next several years. In summation, this period will be remembered as America's Second Great Depression. As long as you keep the big picture in mind you'll understand the reality.
Subscribers to the AVA Investment Analytics newsletter are likely to understand just how preposterous the claims made by the NBER are.
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