Government Spin

As the media spins.

Last month we were all happy. The recession was declared over again, and unemployment was said to be at an unexpected low, of 350,000 newly unemployed, Cars sale were up, housing sales were up, and life just could not be any better.

Then they readjusted the unemployment numbers back to the 550,000 number that we seem to be actually consistently staying at for the last 9 months.

The cash for Klunkers plan expired, and auto sales are back in the dumps. Plus after it was over IRS announced that the $4,500 rebate was considered taxable income, so you lose there.

Today I read that last weeks new unemployment applications was down to a record low of 550,000. Nice way to spin that.

And then housing – thought all was well there, but again today a different set of numbers comes out. Existing home sales unexpectedly dropped 2.7%.

Foreclosures and other financially distressed sellers accounted for about 30 percent of the market. That and the $8,000 government rebate that will end soon for first time buyers. Sort of looks like the government created another mini bubble. Big sellers were homes under $100,000.

That would be foreclosures.

And foreclosures are still holding steady monthly. As the new unemployment applications hold steady every month. An we are looking at close to 1 million folks being cut from the unemployment rosters in the next couple of months. The government extended benefits, but only for a handful of states.

And here is a cheery one – the US government will have have issued 7 TRILLION in new debt before the end of the fiscal year, which is next week.

http://finance.yahoo.com/news/US-issues-7-trillion-debt-rb-118622363.html?x=0&.v=4

That is not including TARP (which still hasn't bought a single toxic asset) or all the money the FED has printed up and passed out. You know, the money they will not disclose who received it, as it would collapse the economy.

The dollar is about to be dumped as the world currency. That ought to have a nice affect on our economy.

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/6211858/HSBC-bids-farewell-to-dollar-supremacy.html

Thank God taking over the health insurance industry, and global warming are more important than the economy getting further destroyed. Or we would be in real trouble.