Thursday, February 16, 2012

Deja vu all over again?

A few short months ago the discussion was:  Are we going to have a double recession or we already back IN a recession?  A few good months of job reports and other economic data and suddenly President Obama's approval numbers are in positive territory and he is beating Romney soundly in all national polls.

As a Democrat I should be elated.  

I'm not.  We've had similar positive numbers in the spring of 2010 and 2011.  Fed Chair Ben Bernanke used the term "green shoots" back in the spring of 2009.  It's part of the American psyche - we want to believe it will  all be better.

The problem is that there every economic recovery has had a reason... a rocket engine to push the economy forward.  Usually, it is lower interest rates and/or housing.  Interest rates have been at the lowest levels possible for three years now and Bernanke is promising they'll remain this low until at least 2014.  That's good but it's nothing new to spur growth.  And housing?  There's no reason for hope there.

And if when Greece defaults?  Wow, this is like Groundhog day.  I'll just back into my burrow now...

No comments:

Post a Comment