Gloom and doom in the U.S. economy is media hype

December 19, 2007 at 3:48 pm 3 comments

Everyone’s been hearing about the mortgage and credit meltdown in the U.S. and the media has been feeding on it like starving boas in a mice den. USA Today’s article yesterday, Bush: Economy is sound, despite credit woes is a prime example.

A brief excerpt:
“President Bush worked to reassure Americans on Monday about the economy but said “there’s definitely some storm clouds and concern” because of the nation’s credit crunch and mortgage problems…Consumer confidence has eroded as turmoil in the housing and credit market have battered the economy…Bush tried to position himself as an advocate for working families by taking aim at his favorite target: the Democratic Congress…Bush chose to highlight positive economic news, such as job growth…He acknowledged the nation’s major economic woes — mainly the housing and credit crunch — in the context of explaining what his administration is doing to help.”

I’m not sure I can put it into better than words than Dave Ramsey’s response to this article on his show yesterday, so here’s a transcript of the 2nd hour:
“It is amazing to me, how negative, I mean, I guess I shouldn’t be amazed, I’ve just been, this last round has gotten under my skin more than any time in the last 15 years of me doing this show. This last round of overblown drama-queen media statements about the economy. Now, let me just first say, I do understand that the housing market has slowed in a few places and is just plain stinky in a few places and is doing very well in some other places.

“I understand that the subprime mortgage market loaning money to people who don’t have any business borrowing money in the first place at high interest rates, putting them into a further mess, has dried up. And, really, no one has shed a tear about that. The subprime mortgage market, there’s not a credit crunch, there’s a credit meltdown. There is no subprime mortgage market anymore. No one’s making these loans. To which the nation should say a resounding, “good!” They shouldn’t have been made in the first place.

“They’re ripping off people who were already struggling, convincing them if they bought a house they’re whole life would be okay and that’s a bunch of crap. Buying a house will not make your life okay if you pay a ridiculous interest rate on an adjustable rate mortgage with a balloon and a pre-payment penalty, or just a ridiculous interest rate. It doesn’t make your life okay. So they can’t get a loan now, oh darn. You know, everybody oughta be going, “well, hello, that’s how it should have been in the first place.”

“So, there’s a meltdown there, whoopie. Whoopie. People that are too broke to buy a house are still too broke to buy a house. Did that change anything? Nope. Now, they’re just not able to buy a house while they’re too broke to buy a house.

“And, somebody looked up the other day and said we’ve got a bunch of credit card debt. Well where have you been for the last two decades? That’s no shock. Somebody looked up the other day and noticed that this nation has huge national debt that is growing moment by moment. Well, where have you been? I mean debt and deficit are two words that Washington thrives on. They not only spend all of your money, but they spend a bunch of money that you haven’t even given them yet.

“And, in spite of that, Americans continue to get up every morning, go out there, kill something and drag it home. Productivity is high. In spite of that, in all the gloom and doom on the news about how bad everything is Christmas sales this year are up this year over last year. And they were up over the year before that and they were up over the year before that and they were up over the year before that. So, it’s not merely a break even, it’s not that the good economy was just sustained, it even got better. I mean, have you tried to get a parking spot at the mall? Oh my gosh! Try to get into a Target? Can’t even get near the place. But the economy is bad.

“And USA Today comes out, basically with a snied attitude in their verbiage, and it’s all in between the lines here, as if Bush has somehow got his head in the sand by coming out and saying the economy is sound. And, somehow painting him up to be like he doesn’t have any idea what’s going on because he won’t get out there and say like Chicken Little that the sky is falling. The truth is he actually does have his finger on what’s going on in this case and does know that the economy is not nearly as bad as the nightly news would have you to believe. As a matter of fact, it’s not bad at all, overall. Overall, the American economy is doing more than good. Really is. “We’ve had pretty good economic run,” the president said, yeah. There you go.”

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Entry filed under: Debt, Real Estate and Mortgages, Soap Box.

Setting boundaries, the old fashioned way Christmas is upon us

3 Comments Add your own

  • 1. Russ  |  January 3, 2008 at 12:16 am

    A look at the S&P500,

    From January 1997 to January 2000 the S&P500 grew from 419.31 to 1473.10 in eight years. That’s a 251.32% gain over eight years, an average 31.41% per year. Phenomenal, likely too high…

    From January 2000 to January 2007 the S&P500 has grown from 1473.10 to 1475.25, that’s a loss of 1.90%, averaging 0.27% loss per year average. The current administration may actually be the first administration to resided over a net loss S&P500 in its 58 year history. People will be quick to point out the S&P500 grew 18.00% in the past two years but by that measure then it should be fair to shorten the time span to the past six months where it has tanked from 1504.66 to 1473.1, a loss 2.10%, which translates to a 4.19% loss per year average. If we go a step further, in the last 3 months the market fell from 1546.96 to 1473.1, a 4.77% drop which is 19.10% average loss per year average.

    I prefer to look over the long haul of greater than 5 years and the fact is this administration is well on the way to being the only administration who has resided over a S&P500 loss in its 58 year history. Its interesting that even in an election year the S&P500 is still tanking.

    I am not into doom and gloom over the economy but it is more than Iraq, oil, and absolute supremacy. I am fully invested and poised to take advantage of whatever administration moves into office. I believe there is some clear ground to make up. Hopefully this administration will be gridlocked and find it impossible to spend our tax dollars and so brings us closer to a responsible balanced budget.

    S&P500 data source: http://finance.yahoo.com/q?s=%5EGSPC

    Reply
  • […] To find more information from the source here […]

    Reply
  • 3. http://templebeth.org/?p=23  |  September 29, 2014 at 3:53 pm

    I consantly spent my half an hour to read this blog’s articles alll the time along with a cup of coffee.

    Reply

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