What Would Have Happened?

<p>Over the last year steps taken to stabilize our economy have been the subject of harsh criticism from numerous voices. In Washington there were objections from the right helping us into a year of partisan stagnation on many critical issues. On the left many Democrats felt the same way. As the furor over the economy and healthcare heated up around August, reticence over what the protests could mean in November of 2010 only intensified the log jam. </p > <!--break--> <img class="dada-image-center" src="http://rochester.indymedia.org/sites/default/files/migrate_dada/question-mark.jpg"><br><p>As the Tea Party did an excellent job of organizing; finding well heeled backers and sympathetic conservative media personalities, nervousness over the economy spread fear across the nation. Democrats from more conservative districts worried about re-election. Republicans tapped into the Tea Party message and used their calls for complete non-cooperation to help re-gain popularity. However, that same conservative sentiment wasn’t so popular with the same people under Bush. </p > <p>Reeling from the combined 2006 and 2008 pummeling, the GOP found a voice in a group of voters they felt could help bolster their ailing reputation. They signed up for the Tea Party ride and gained much needed mileage. They did well for themselves with representatives agreeing to back the new platform. The downside of the new direction was hardly anything was accomplished in 2009. </p > <p>However, for all the worry some hope has emerged. As it turns out the economy was slowly improving over the last year while certain lawmakers sat on the sidelines on our dollar. Inch by inch various financial sectors have been steadying and stabilizing. Some of the initiatives apparently were much more prudent than the calls of those who focus more on how loud they are rather than informed would lead us to believe. </p > <p>Big banks on Wall Street were the primary focus of the bailouts and as controversial as that was and still is it was the first sector to see growth. The fact Wall Street was the sole area to grow for so long given their reckless behavior made many of us angry. Bonuses, lavish retreats and million dollar salaries only caused frustration to fester. There is still much work to be done. As to how to proceed, some economists say ‘cut back’ some say we need more robust efforts. (http://abcnews.go.com/Business/economists-warn-financial-us-economy/story?id=9990828&amp;source=patrick.net) </p > <p>Yet, the economy is in a better position now than the atmosphere might lead us to believe. CBS News recently reported “Mark Zandi, chief economist at Moody's Analytics, (says) the economy isn't out of the woods yet, but… appears to have turned the corner. Zandi admits (this is) only ‘in a very technical sense… probably in a sense only an economist can really appreciate. Not until we start to see jobs will… people believe that the recession is over.’ When will that be? ‘I'm hopeful that, in the next few months, certainly by the spring and summer, we'll start to see some job growth.’ ” (http://www.cbsnews.com/stories/2010/01/30/earlyshow/saturday/main6157642.shtml) </p > <p>There is more, “the U.S. dollar was up against most other major currencies on Thursday, in the wake of upbeat data on unemployment and nonfarm productivity in the United States.” (http://www.forexpros.com/news/forex-news/forex&#8212;-dollar-up-vs.-most-rivals-after-upbeat-u.s.-data-123795) Business Week reported “manufacturing expanded in February for a seventh consecutive month, indicating factories are leading the U.S. economic recovery… Santa Clara, California-based Applied Materials Inc., the world’s largest producer of chip making equipment, forecast sales and profit that topped analysts’ estimates as semiconductor companies begin to increase orders… The Institute for Supply Management’s factory index fell to 56.5, lower than anticipated, from January’s 58.4, which was the highest since August 2004&#8230; Readings greater than 50 signal expansion.” (http://www.businessweek.com/news/2010-03-01/manufacturing-in-u-s-expanded-for-seventh-month-in-february.html) </p > <p>A new report out Thursday by the Fed confirms “economic conditions continued to expand.” (http://www.reuters.com/article/idUSTRE6224G620100303) Although we are still groping our way through there seems to be light at the end of the tunnel. </p > <p>It makes one wonder exactly what would have happened to our economy had we allowed the collapse to just occur as some suggested doing. They asserted the most prudent thing to do was just allow big banks and other critical segments of the economy to fail with everything that would have meant. </p > <p>Over the last week unemployment benefits were held up by one lone Senator. He felt this was the right thing to do regardless of the human toll, because he wanted to stick to his core beliefs regarding the legislation. In just those five days “he had forced about 2,000 federal employees into furloughs and imperiled jobless benefits for millions.” (http://www.washingtonpost.com/wp-dyn/content/article/2010/03/03/AR2010030300122.html?hpid=topnews) That’s just five days. What would have happened over a year? </p > <p>The road to recovery has not been perfect. Yet, perhaps the direction we’ve been on in terms of economic recovery policy has not been as bad as we’ve thought. One can only imagine what the last year would have been like had we allowed the markets to just take their course. Where would we be if banks labeled ‘too big to fail’ in the end of 2008 beginning of 2009 were demolished wholesale?</p > <p>To read about my inspiration for this article go to <a href="http://www.lawsuitagainstuconn.com">www.lawsuitagainstuconn.com</a>.</p >

<p>Over the last year steps taken to stabilize our economy have been the subject of harsh criticism from numerous voices. In Washington there were objections from the right helping us into a year of partisan stagnation on many critical issues. On the left many Democrats felt the same way. As the furor over the economy and healthcare heated up around August, reticence over what the protests could mean in November of 2010 only intensified the log jam. </p> <!--break--><p><img class="dada-image-center" src="http://rochester.indymedia.org/sites/default/files/migrate_dada/question-mark.jpg" /><br /> </p><p>As the Tea Party did an excellent job of organizing; finding well heeled backers and sympathetic conservative media personalities, nervousness over the economy spread fear across the nation. Democrats from more conservative districts worried about re-election. Republicans tapped into the Tea Party message and used their calls for complete non-cooperation to help re-gain popularity. However, that same conservative sentiment wasn’t so popular with the same people under Bush. </p> <p>Reeling from the combined 2006 and 2008 pummeling, the GOP found a voice in a group of voters they felt could help bolster their ailing reputation. They signed up for the Tea Party ride and gained much needed mileage. They did well for themselves with representatives agreeing to back the new platform. The downside of the new direction was hardly anything was accomplished in 2009. </p> <p>However, for all the worry some hope has emerged. As it turns out the economy was slowly improving over the last year while certain lawmakers sat on the sidelines on our dollar. Inch by inch various financial sectors have been steadying and stabilizing. Some of the initiatives apparently were much more prudent than the calls of those who focus more on how loud they are rather than informed would lead us to believe. </p> <p>Big banks on Wall Street were the primary focus of the bailouts and as controversial as that was and still is it was the first sector to see growth. The fact Wall Street was the sole area to grow for so long given their reckless behavior made many of us angry. Bonuses, lavish retreats and million dollar salaries only caused frustration to fester. There is still much work to be done. As to how to proceed, some economists say ‘cut back’ some say we need more robust efforts. (<a href="http://abcnews.go.com/Business/economists-warn-financial-us-economy/story?id=9990828&amp;source=patrick.net">http://abcnews.go.com/Business/economists-warn-financial-us-economy/stor...</a>) </p> <p>Yet, the economy is in a better position now than the atmosphere might lead us to believe. CBS News recently reported “Mark Zandi, chief economist at Moody's Analytics, (says) the economy isn't out of the woods yet, but… appears to have turned the corner. Zandi admits (this is) only ‘in a very technical sense… probably in a sense only an economist can really appreciate. Not until we start to see jobs will… people believe that the recession is over.’ When will that be? ‘I'm hopeful that, in the next few months, certainly by the spring and summer, we'll start to see some job growth.’ ” (<a href="http://www.cbsnews.com/stories/2010/01/30/earlyshow/saturday/main6157642.shtml">http://www.cbsnews.com/stories/2010/01/30/earlyshow/saturday/main6157642...</a>) </p> <p>There is more, “the U.S. dollar was up against most other major currencies on Thursday, in the wake of upbeat data on unemployment and nonfarm productivity in the United States.” (<a href="http://www.forexpros.com/news/forex-news/forex—-dollar-up-vs.-most-rivals-after-upbeat-u.s.-data-123795">http://www.forexpros.com/news/forex-news/forex—-dollar-up-vs.-most-riv...</a>) Business Week reported “manufacturing expanded in February for a seventh consecutive month, indicating factories are leading the U.S. economic recovery… Santa Clara, California-based Applied Materials Inc., the world’s largest producer of chip making equipment, forecast sales and profit that topped analysts’ estimates as semiconductor companies begin to increase orders… The Institute for Supply Management’s factory index fell to 56.5, lower than anticipated, from January’s 58.4, which was the highest since August 2004… Readings greater than 50 signal expansion.” (<a href="http://www.businessweek.com/news/2010-03-01/manufacturing-in-u-s-expanded-for-seventh-month-in-february.html">http://www.businessweek.com/news/2010-03-01/manufacturing-in-u-s-expande...</a>) </p> <p>A new report out Thursday by the Fed confirms “economic conditions continued to expand.” (<a href="http://www.reuters.com/article/idUSTRE6224G620100303">http://www.reuters.com/article/idUSTRE6224G620100303</a>) Although we are still groping our way through there seems to be light at the end of the tunnel. </p> <p>It makes one wonder exactly what would have happened to our economy had we allowed the collapse to just occur as some suggested doing. They asserted the most prudent thing to do was just allow big banks and other critical segments of the economy to fail with everything that would have meant. </p> <p>Over the last week unemployment benefits were held up by one lone Senator. He felt this was the right thing to do regardless of the human toll, because he wanted to stick to his core beliefs regarding the legislation. In just those five days “he had forced about 2,000 federal employees into furloughs and imperiled jobless benefits for millions.” (<a href="http://www.washingtonpost.com/wp-dyn/content/article/2010/03/03/AR2010030300122.html?hpid=topnews">http://www.washingtonpost.com/wp-dyn/content/article/2010/03/03/AR201003...</a>) That’s just five days. What would have happened over a year? </p> <p>The road to recovery has not been perfect. Yet, perhaps the direction we’ve been on in terms of economic recovery policy has not been as bad as we’ve thought. One can only imagine what the last year would have been like had we allowed the markets to just take their course. Where would we be if banks labeled ‘too big to fail’ in the end of 2008 beginning of 2009 were demolished wholesale?</p> <p>To read about my inspiration for this article go to <a href="http://www.lawsuitagainstuconn.com">www.lawsuitagainstuconn.com</a>.</p>