Thursday, September 23, 2010

The Summer of Recovery

Vice-President Biden called this summer "the summer of recovery". Has it happened? Did I miss it? It never happened. Look at what is going on.

  1. According to recent data from the Federal Reserve, corporate cash is still hovering at record levels of $1.84 trillion, and cash remains higher than it was just 18 months ago. These high cash levels are starting to become a sore spot among observers. The hope was that cash-rich companies could ignite the economy coming out of the recession by dipping into their deep pockets to boost spending and demand. It hasn't happened. The reason is that businesses are scared and they are uncertain about the future. My own health care premiums went up 30%. The insurance companies are building cash reserves so that they can handle all of the regulations and agencies that will be created. Remember, 16,000 more IRS agents just to enforce the mandate to buy health care insurance. Businesses are scared. When businesses are scared, they don't hire.
  2. The Initial claims for unemployment aid rose to 465K. Economists had thought that the number would remain flat. It didn't.
  3. Consumer confidence declined in July and only slightly improved in August.
  4. The government's solution of spending more and more money is not working.
No one is buying the lame excuses of the Democrats or the Republicans. I'm tired of all of this and truly want change. Let us return to small government. Let us reduce spending. Let us cut taxes. Let us slash the budget.

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