Hey, everyone. Did you know that the depression, which no one admitted we were in, is over, and the recession, which some people said never began, is ending?
I do not claim to be an economist, but I do try to use common sense. What this type of rhetoric reflects, in my view, is the extreme disconnect between the real economy and the stock market.
Many Americans have been fooled into thinking that the stock market IS the economy. If we pretend that’s true, then by that criterion, we’re in a depression. Remember 14,000, folks? The Dow Jones Industrial Average reached that milestone in July, 2007. Yesterday, the DJIA was at…7978.08. Last time I checked, 8,000 was a lot less than 14,000.
But it gets even more unbelievable. Adjust your rose-colored glasses and your Xanax dosage, people.
Jim Cramer is now saying that the recession started 18 months ago. That would be (counts fingers, toeses, noses) October of 2007. Any guesses as to what the Dow Jones Industrial Average was like back then?
Would you be surprised to know that it was at the same record-breaking height it had reached in July?
So if we were in a recession when the DJIA was at 14,000, what are we in when it’s at 8,000?
Does the word “depression” spring to mind? I know it does for me.
Jim Cramer is trying to have it both ways. By his logic, the depression is over because the stock market is rising. But he also says that when the stock market was approximately 43% higher 18 months ago, we were in a recession. So, Mr. Cramer, does the stock market reflect economic reality, or not?
The way I see it, the Dow Jones Industrial Average is simply a reflection of how the Powers That Be (the super-rich and mega-corporations) feel about certain sectors of the economy, most of which have very little to do with the lives of ordinary Americans like you and me.
Our Corporate Overlords may be feelin’ groovy because the G20 resulted in gonzo bucks for the IMF. But as for us 99-percenters, I’m with this guy, who, commenting on Yahoo, responded to Mr. Cramer’s rosy prediction thusly:
1. tell the 2 counties in my area, whose unemployment rate is 19% and 14% respectively, the depression is over.
2. Tell your neighbor Dave Cote from Honeywell I have email evidence in which his minions have ORDERED American project managers to refrain from issuing purchase orders to American manuafacturer’s and to issue purchase orders to the Indians and Chinese.
3. Tell the local owners of 2 mega malls the depression is over as they enter Chapter 11.
4. Tell the UAW the depression is over as GM declares bankruptcy and dumps their fat labor contracts and pension obligations.
5. The depression is over for a select group: the finanicla fraudsters, who, for a brief moment in time, actually feared prosecution for their deliberate fraud and fleecing.
6. When you see Mr. Cote, tell him I want my hedge clippers back.
Jim Cramer can declare whatever he wants, but it won’t put the food back on our tables, the jobs back in our companies, or the people back in their homes.
That, my friends, is the REAL economy.
There’s a war post coming soon, but in the meantime, this is an open thread. How are you feelin’ this morning?