I don’t mean Republican or Democrat. I mean Recession or Depression.
The bad economic news just keeps coming. The recession that ought to be winding down seems to be winding up. Today there was more bad news that drove the Dow below 10,000 for a time.
Durable goods dropped, excluding aircraft. New home sales fell 12.4% in July, following yesterday’s report that sales of previously occupied housing fell 27% – a low not seen since the Johnson administration. Last week the weekly jobless claims hit 500,000; we’ll see what tomorrow brings. Obama’s Homeowner Assistance program is failing, with half of the participants not able to make their house notes.
Summer of Recovery?
Maybe for Barack Obama’s golf game.
If you want to dip into the gloom, take a look at www.zerohedge.com. The writer Tyler Durden has such titles as “JPM ‘Disastrous’ Durable Goods Number Sets Stage for sub 1% Q3 GDP,” “We’re All in a Race to the Bottom,” “Stock Market’s Slow, Painful Death Rattle.” At www.spectator.org James Gannon writes “Fed to Savers: Drop Dead,’ with Ross Kaminsky saying “Housing Stops.”
No one knows what is coming next. Tax hikes? Inflation? Deflation? Higher unemployment?
The only answer may lie in the question, R or D. Republican instead of Democrat control of Congress may just stop the slide.