Obama Economy Slowly Recovers. Bush Crashed.

High temperature dropped from the 80s to 50s as rain moved in. Impressive violent thunderstorms so I unplugged the computer and read paper books. Beautiful green spring. We need rain weekly to keep it green.

The USA economy is slowly recovering. No thanks to the Fed which has been “missing in action” allowing banks to hoard money instead of loan out that money to boost the economy. Similarly the federal deficit did not help much — most of that money stayed in Washington DC to pad the pocketbooks of bureaucrats and crooks.

The stock market has done best, way up, as one might expect as the rich get richer. But the very rich are getting much richer than wgat the stock market suggests. The richest have gone to private equity and private ventures that pension funds and smaller investors cannot invest in or even find out about.

Industrial production and the labor force have grown larger than they were before the crash, but are below a historical growth trend line. The recovery is not for workers or companies that make things.

CPI and real GDP are closer to long term growth trends, but somewhat depressed from what they would have been without the crash. Consistent with the rich traveling overseas and spending their money over there. Such foreign spending will not boost the USA economy or drive up USA prices.

Similarly real exports are up as foreigners get richer and are able to import goods that formerly would have been sold to USA citizens who now lack the money to buy.

The unemployment rate has fallen somewhat but still high compared to history. Over the last 20 years unemployment was lower than today, until the Bush crash of 2008.

Interest rates are very low. Federal Funds are near zero. Helps banks finance their operations cheaply. But savers (such as the elderly) are not getting much interest. Poor people are paying outrageously high interest rates for payday loans. Veterans are getting cheated by being charged high interest rates for student loans. Payday lending companies often set up operations near military bases. Maybe usury laws should be re-instated. I looked into getting a VA mortgage but they have a $3000 finance charge or something like that. Then interest rates greatly increase the cost of the house. I would rather pay cash. Maybe someday I will retire in Hawaii.

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