The Obama Boom myth is rapidly being exposed as a lie. The Federal Reserves money pumping hid the rot in the economy the last 3 years. The media heralded the economy as one of the best ever. When there was mediocre economic growth, they celebrated as if it was a 90′s/80′s boom times. Bad news they dismissed as unexpected. Last week Moody’s downgraded 15 banks, signaling the economy is sitting on a house of cards. Another downturn is on its way.
As President Obama and Republican challenger Mitt Romney get set for what’s likely to be among the most negative presidential campaigns in recent history, each man should ask himself if he really wants to win — because he’ll almost certainly face the grim prospect of another recession.
Sure, it’s always difficult predicting the economic future; that just a couple months ago we all thought (including me on these pages) that we were heading for a sustained recovery, as job growth seemed to have picked up steam and most financial gurus predicted that it was just a matter of time before the strong data translated into meaningful wages and a more vibrant economy.[....]
ut now we see just the opposite, at least according to the latest data, and the prediction a slew of market strategists and investors made to me even before last week’s round of bank “downgrades” by the raters at Moody’s Investors Service.Our low growth and jobs woes can be traced to a number of factors, of course — from Europe’s mess and China’s slowdown to the ongoing assault of higher taxes and increased regulations at the heart of Obama’s economic agenda.
Bottom line: We only limped out of recession, and the limp’s been getting worse the last few months. Now the Moody’s actions might just be the final straw that pushes a barely growing economy into negative territory.