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Obama Recession Deepens ‘Unexpectedly’

From a walking on air Associated Press:

Economy shrinks at 6.1 percent pace in 1Q

By Jeannine Aversa, AP Economics Writer

WASHINGTON – The economy shrank at a worse-than-expected 6.1 percent pace at the start of this year as sharp cutbacks by businesses and the biggest drop in U.S. exports in 40 years overwhelmed a rebound in consumer spending.

The Commerce Department’s report, released Wednesday, dashed hopes that the recession’s grip on the country loosened in the first quarter. Economists surveyed by Thomson Reuters expected a 5 percent annualized decline.

Instead, the economy ended up performing nearly as bad as it had in the final three months of last year when it logged the worst slide in a quarter-century, contracting at a 6.3 percent pace. Nervous consumers played a prominent role in that dismal showing as they ratcheted back spending in the face of rising unemployment, falling home values and shrinking nest eggs

U.S. exports plunged at a rate of 30 percent, the biggest drop since the first quarter of 1969, reflecting the crimped appetite of struggling foreign buyers. The government also cut spending 3.9 percent, the most since the end of 1995.

Even if the recession were to end this year, the economy will remain feeble and unemployment will keep climbing, government officials and analysts say.

The jobless rate is now at a quarter-century high of 8.5 percent and is expected to hit 10 percent by the end of this year. It will probably rise a bit higher in early 2010 before starting to slowly drift downward. Still, the Fed predicts unemployment will stay elevated into 2011, and economists don’t think it will return to normal — around a 5 percent jobless rate — until 2013

Does anyone actually believe this line:

The government also cut spending 3.9 percent, the most since the end of 1995.

Obviously words have no meaning to government bureaucrats and the Associated Press.

Still, the AP and the rest of the media really do not give themselves enough credit:

Nervous consumers played a prominent role in that dismal showing as they ratcheted back spending in the face of rising unemployment, falling home values and shrinking nest eggs.

We are still paying the price for the media talking down the economy to get Democrats elected. A conscious choice on their part, once they saw that the Iraq War was not going their way.

The media caused the lack of confidence that led to the housing slump, which led to the financial crisis, which has led eventually to a real recession. And we will be facing the consequences of their handiwork for a long time to come. Perhaps, thanks to Obama, for the rest of our lives.

But what is more important? Sometimes you have to break some eggs to make an omelet.

And our media masters did manage to give the Democrats full control of the Federal Government.

That surely is more important than any devastation of the American economy and wrecking countless lives.

By the way, looking at the GDP chart at the top, aren’t we assured by the media that the US has been in a recession since December 2007 because the two subsequent quarters were only on the plus side because of Bush’s stimulus package?

How come Mr. Bush’s stimulus package worked so fast and Mr. Obama’s has not worked at all?

This article was posted by Steve on Wednesday, April 29th, 2009. Comments are currently closed.

11 Responses to “Obama Recession Deepens ‘Unexpectedly’”

  1. Rusty Shackleford says:

    But HE said it was gonna improve…..HE said……..He said.

    Obviously the article is written by right-wing, bigoted, racist, Bush-philes.

  2. proreason says:

    SG: “Perhaps, thanks to Obama, for the rest of our lives.”

    Fixed that for you Steve.

    The angry mob (TMCC: The Moron’s Criminal Cabal) in the White House has already done too much to be reversed. It’s already a Depression.

    But by hook or by crook, numbers will appear mysteriously in 2010 to show a miraculous improvement, just in time for the elections.

    Funny how that works.

    And ordinarilly, predictions are very iffy.

    But not this time. It’a a sure thing.

  3. Colonel1961 says:

    Sure it’s bad, but he inherited the problem. Nothing to see here folks…

  4. U NO HOO says:

    Just an isolated quarter.

  5. Odie44 says:

    Intersting comparison. Let’s see – who was President previous to 1969 (John Kerry, don’t answer with your searing memory) and what exactly was going on in America during these times????

    Liberal engineering redux. Hand outs and drop outs over production.

    Thankfully this concluded with with Nixon gaining 219 electoral votes from 1968 – 1972.

    Take note folks – plenty of lessons to be learned here…

  6. pdsand says:

    “The government also cut spending 3.9 percent, the most since the end of 1995.”

    Who knows, the economic stimulus money won’t be spent until 2050, and the only TARP money that actually got spent happened last October or whenever. The regular government operations were frozen at previous levels due to democrats not passing the last Bush appropriations bill until Obama came into office. Sure we have obligated ourselves to spend every penny we’ll ever earn on porkulus interest, but maybe the actual government spending declined in this last quarter.

    • proreason says:

      Wouldn’t it be interesting to see a category breakdown of the “government spending” that shrunk “3.9%”?

      Now, I’m not an expert on the federal government’s budget, but everybody knows that there are 4 categories of “spending” that constitute about 80% of federal spending:
      – Social Security – absolutely went UP, not down
      – Mediaire/Medicaide – not a chance it went down
      – Defense – hmmmm
      – Debt Service – curiously enough, the average 3-month Tbill rate from Apr 2007 to Mar 2008 was 3.7%, whereas the average rate from Apr 2008 to Mar 2009 was 9/10th of 1%

      You know, I did do a bit of research on Heritage.org and discovered that debt service in 2008 was 243B of 2.9T total spending (about 8% of spending).

      Gee, uh, a reduction of interest of 110B would be a 3.9% “spending” reduction in the total budget, and uh, interest rates fell by 75% in the period we are talking about..

      You don’t think……no, it could never happen…..that the Moron would claim he “reduced spending” when the reduction was actually due to a dramatic reduction in debt service.

      That and reductions in military spending that offset increases everywhere else.

      These contemptable conmen are the MOST OUTRAGEOUS LIARS OF ALL TIME.

  7. texaspsue says:

    “By the way, are you better off than you were 100 days ago?”

    Heck no and it’s looks as though the next 100 days are going to be an uphill battle also.

    Don Surber has the “official” 100 days, 100 mistakes list:


    • Oracle says:

      Better off? I lost my job in the first hundy. Based upon logic I have heard (9/11 on Bush’s watch)…that means my layoff falls directly on Barry’s shoulders.

      Unlike the pitiful people I read about praising the One for COBRA and porkulus, I searched my a$$ off and found another job instead of waiting for the government cheese to fall into my lap out of another taxpayers pocket.

      Better off? I make my own better, always have and always will.

  8. Liberals Demise says:

    6 million out of work now and 600,000 more each week.
    A promise yet fulfilled of 3.5 million jobs and we are at Day 100.
    3 million plus that will have nothing to look forward to because the One and Only looks at only creating 3.5 million and that is only on paper. He loves to call those numbers into play whenever and where ever he can.
    The only thing I can see he has done is alienate our friends, kiss our enemies ass, sell out America wholesale and sleep with Michele. Lets’ see the historians print that!!

    • JohnMG says:

      If these were the answer choices to a question on a multiple-choice test, I’d have to leave it blank.

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