Sounds like we’re in for another downturn:
The U.S. economy has a “significant likelihood” of entering a double-dip recession if the government doesn’t step in to help the unemployed, economist Robert Shiller told MarketWatch News Break on Wednesday. Read more…
More than a few economists are suggesting a return to a recession due to bleak jobs outlook. From Huff Post:
the noted bear Nouriel Roubini, the president of RGE Monitor and a professor at New York University, delivered a grim prognostication via Twitter: “Risk of a double dip recession in advanced economies (US, Japan, Eurozone) has now risen to 40%.”
Roubini is not alone in his concern. Last week, David Rosenberg, the Gluskin Sheff economist (formerly of Merrill Lynch), whose words have become must-read barometers of bear-ishness, said that the chances of a double-dip recession in the U.S. are now “higher than 50-50.” Read more…
We’re in a Catch-22 situation. The outlook is bleak, because there are no jobs. Companies are holding their money and are not hiring because the outlook is bleak. The quickest way to break this cycle is to provide businesses with incentives to hire. The best thing the government can do at this point to spur job growth is to cut business taxes across the board, even if it’s for the short term. Provide tax reduction for companies that hire a minimum number of workers and keep them on for at least a 8 months. At the same time, the federal budget needs to be reduced. How about a 5% pay cut for federal workers, 10% for everyone in Congress?
Under Sen. Ron Wyden’s the proposed Senate Bill, people who refuse to buy health insurance will be fined over $1000/year.
I’m sorry, I didn’t vote Democratic so they can fine me for not choosing health insurance. As I have said before, I shouldn’t be forced to foot the bill for folks who choose to eat fast food three times a day. The cost for these programs will only go up. And they continue to take more money out of my paycheck to pay for these programs. Yet my pay isn’t going up that fast, which means I’m making less.
According to research done by the Kaiser Family Foundation, National Public Radio, and the Harvard School of Health, health insurance costs individuals an average of $4,800 annually. The cost for families to get insurance is even higher, at around $12,000 annually. These kinds of costs would push many people over the edge financially. How does Sen. Wyden propose that we pay for more people who will be unable to afford food, housing and education if they have to pay for health insurance? Effective health-care reform would be better accomplished by other means. Sen. Wyden’s own proposals to switch America from employer-based to individual health-insurance markets, for example, would do a great amount of good by encouraging competition and innovation without making life harder for the people having the most difficult time getting insurance.
Why not have individual health insurance markets? I can choose my car insurance, life insurance, cell phone provider, internet provider, cable tv provider, etc? Competition would create lower prices.
In Europe, where health care is free and state run, many experts say we may be going down a slippery slope.
“What we can be proud of in Europe is the ground rules, that everyone has the right to health care,” said Jose Martin-Moreno, a health expert at the University of Valencia in Spain. “But the implementation has been difficult and one size does not fit all.”
Critics say the policies are often driven more by politics than science. Last week, Prime Minister Gordon Brown promised that patients unable to see cancer experts within two weeks would get cash to pay for private care. Brown had previously argued against paying for private providers and some say the reversal may be a gimmick to boost his sagging popularity.
“I would warn Americans that once the government gets its nose into health care, it’s hard to stop the dangerous effects later,” said Valentin Petkantchin, of the Institut Economique Molinari in France. He said many private providers have been pushed out, forcing a dependence on an overstretched public system.
A nice article in OregonLive.com, which echoes the sentiment of many, regarding the Mortgage Bailout. Basically asking the simple question “what about all the people who bought houses, have been budgeting, cutting their expenses, and paying their mortgage ON TIME??? What about the people who know how to live within their means?
But back to Mr. Obama and his plan to bail people out of mortgages that many had no business taking on in the first place: He’s making a lot of us who bought homes we could afford — rather than homes that put us on the financial edge — look like complete chumps, has-beens and idiots.
His plan would take billions of taxpayer dollars and give them to banks and investors so they could lower borrowers’ interest rates and make other changes to the terms of their home loans. This is exactly the sort of thing that I worried about when Obama talked to us about being our “brother’s keeper” in his convention acceptance speech. His plan will teach people to be even more irresponsible with money; to acquire more and more and more because the threat of failure is getting lower and lower.
This is getting ridiculous. I ranted about the bailouts before, I’ll do it again. SAY NO TO THE BAILOUTS! Now, Pelosi and Co. want to bailout the auto industry. ARE THEY FREAKIN’ NUTS!?! The most sensible comment on this actually came out of the White House:
While companies like Toyota and Honda were spending money on R&D for efficient, hybrid cars, Detroit was spending money on Hummers and gas guzzling trucks.
Now they want help because they made some stupid choices over the years. And to top it off, the freakin Dems are pushing for this bailout. This, on top of the news that the Wallstreet companies that received bailout money continue to spend on huge bonuses. In fact, news came out that AIG, which recently asked for more bailout money, spent $343,000 for a two day “sales meeting” at luxury resort in Arizona:
The company had already been under criticism for spending $440,000 for a weeklong retreat in California for top-performing insurance agents, just days after the U.S. government stepped in to save the company with a $85 billion taxpayer-funded loan.
Write to your representive in Congress and tell them NO MORE TAXPAYER FUNDED BAILOUTS!
Economy guru and professor at NYU, Nouriel Roubini gave a presentation in London, and basically said the worst is yet to come. Roubini, back in 2006, accurately predicted that the US will fall into a recession. Back in February, he predicted the financial market meltdown. Some quotes from the conference:
- We’ve reached a situation of sheer panic
- hundreds of hedge funds are going to go bust
- We’re seeing the beginning of a run on a big chunk of the hedge funds
- don’t be surprised if policy makers need to close down markets for a week or two in coming days
- This is the worst financial crisis in the U.S., Europe and now emerging markets that we’ve seen in a long time
- Things will get much worse before they get better. I fear the worst is ahead of us.
Read more from the RGE Monitor.
Wow! A 119 year old bank, WaMu has been seized by the government and sold off to JPMorgan. A major consolidation is happening in our financial markets/banking system.
And they just built a WaMu location a block away from me, set to open next month.