Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
Venezuela’s Hyperinflation Drags On For A Near Record—36 Months - 18th Nov 19
Intellectual Property as the New Guild System - 18th Nov 19
Gold Mining Stocks Q3’ 2019 Fundamentals - 18th Nov 19
The Best Way To Play The Coming Gold Boom - 18th Nov 19
What ECB’s Tiering Means for Gold - 17th Nov 19
DOJ Asked to Examine New Systemic Risk in Gold & Silver Markets - 17th Nov 19
Dow Jones Stock Market Cycle Update and are we there yet? - 17th Nov 19
When the Crude Oil Price Collapses Below $40 What Happens? PART III - 17th Nov 19
If History Repeats, Gold is Headed to $8,000 - 17th Nov 19
All You Need To Know About Cryptocurrency - 17th Nov 19
What happens To The Global Economy If Oil Collapses Below $40 – Part II - 15th Nov 19
America’s Exceptionalism’s Non-intervention Slide to Conquest, Empire - and Socialism - 15th Nov 19
Five Gold Charts to Contemplate as We Prepare for the New Year - 15th Nov 19
Best Gaming CPU Nov 2019 - Budget, Mid and High End PC System Processors - 15th Nov 19
Lend Money Without A Credit Check — Is That Possible? - 15th Nov 19
Gold and Silver Capitulation Time - 14th Nov 19
The Case for a Silver Price Rally - 14th Nov 19
What Happens To The Global Economy If the Oil Price Collapses Below $40 - 14th Nov 19
7 days of Free FX + Crypto Forecasts -- Join in - 14th Nov 19
How to Use Price Cycles and Profit as a Swing Trader – SPX, Bonds, Gold, Nat Gas - 13th Nov 19
Morrisons Throwing Thousands of Bonus More Points at Big Spend Shoppers - JACKPOT! - 13th Nov 19
What to Do NOW in Case of a Future Banking System Breakdown - 13th Nov 19
Why China is likely to remain the ‘world’s factory’ for some time to come - 13th Nov 19
Gold Price Breaks Down, Waving Good-bye to the 2019 Rally - 12th Nov 19
Fed Can't See the Bubbles Through the Lather - 12th Nov 19
Double 11 Record Sales Signal Strength of Chinese Consumption - 12th Nov 19
Welcome to the Zombie-land Of Oil, Gold and Stocks Investing – Part II - 12th Nov 19
Gold Retest Coming - 12th Nov 19
New Evidence Futures Markets Are Built for Manipulation - 12th Nov 19
Next 5 Year Future Proof Gaming PC Build Spec November 2019 - Ryzen 9 3900x, RTX 2080Ti... - 12th Nov 19
Gold and Silver - The Two Horsemen - 11th Nov 19
Towards a Diverging BRIC Future - 11th Nov 19
Welcome to the Zombie-land Of Stock Market Investing - 11th Nov 19
Illiquidity & Gold And Silver In The End Game - 11th Nov 19
Key Things You Need to Know When Starting a Business - 11th Nov 19
Stock Market Cycles Peaking - 11th Nov 19
Avoid Emotional Investing in Cryptocurrency - 11th Nov 19
Australian Lithium Mines NOT Viable at Current Prices - 10th Nov 19
The 10 Highest Paying Jobs In Oil & Gas - 10th Nov 19
World's Major Gold Miners Target Copper Porphyries - 10th Nov 19
AMAZON NOVEMBER 2019 BARGAIN PRICES - WD My Book 8TB External Drive for £126 - 10th Nov 19
Gold & Silver to Head Dramatically Higher, Mirroring Palladium - 9th Nov 19
How Do YOU Know the Direction of a Market's Larger Trend? - 9th Nov 19
BEST Amazon SMART Scale To Aid Weight Loss for Christmas 2019 - 9th Nov 19
Why Every Investor Should Invest in Water - 8th Nov 19
Wait… Was That a Bullish Silver Reversal? - 8th Nov 19
Gold, Silver and Copper The 3 Metallic Amigos and the Macro Message - 8th Nov 19
Is China locking up Indonesian Nickel? - 8th Nov 19

Market Oracle FREE Newsletter

$4 Billion Golden Oppoerunity

What's Wrong With U.S. Consumer Confidence?

Economics / Recession 2008 - 2010 Nov 04, 2009 - 02:20 AM GMT

By: Guy_Lerner

Economics

Best Financial Markets Analysis ArticleThis is an interesting video taken from CNBC's "Squawk On The Street" - The show's host, Mark Haines, is incredulous that last Tuesday's consumer confidence number came in lower than expected. Haines mutters: "What the heck is that all about?" As Haines goes onto explain, housing is higher in most major markets and corporate profits are better. The only thing missing was the next statement out of his mouth, and I will fill in the blanks: "What do people want?"


It just goes to show how divorced Wall Street is from Main Street.

The show's talking heads or those people in the boxes suggest that the real angst Americans have is rising gas prices at the pump, increasing health care costs, and an uncertain labor market. This is all true, but I don't think that it is the real source of America's angst.

The real source of America's angst is a sense that something is terribly wrong. What that something is isn't tangible -like higher gas prices - but it is palpable. Maybe it is the lack of leadership in Washington or the inability of that leadership to do anything but put our problems off for another day.

There is no collective purpose to the actions coming out of Washington. There is no common cause that Americans can rally around. Bailouts and government programs, like "cash for clunkers", have perpetuated the same old thing. The bailouts have favored the connected or those who where irresponsible in the first place. Is this the American way?

This is not the change that Americans wanted. They voted for it, but this is not the change that Americans wanted.

So what kind of change did Americans want?

For this we need to go back to September, 2001 and the War on Terror. With the attack on America, President Bush was handed a golden opportunity to galvanize Americans in a common cause, but instead all he asked of his fellow countrymen was to go to the malls and continue shopping. The soldier in combat made the sacrifice, but this is what they do. Their sacrifice was unconditional, and this was understood and accepted by all. But where was the sacrifice asked of the ordinary American here at home? At the very least, shouldn't we have been asked to cut back on our consumption of large cars and oil to decrease our reliance on those very same foreigners who were at war with America? I am sure my fellow citizens would have been willing to act for the greater good, but they were never asked. This was President Bush's biggest failing.

Now we come to President Obama. His crisis isn't the War on Terror, but a generational economic crisis. President Obama did come to the electorate and say "we need to change the way we do business" referring to the grid lock and bipartisanship in Washington. I think the President believed this. From an idealogical perspective, Republicans and Democrats need to work together to solve the problems this country faces.

Despite the political rhetoric, President Obama did not understand the kind of change Americans seek. It isn't so much what he has done (i.e., wasted a lot of money) but what he has failed to do (i.e, galvanize the country in a common cause) that is so discouraging. Even if the other guy (Senator McCain) was elected, he probably would have done the same thing - thrown good money after bad - as this was what was being recommended by the economic of this country. Oh, these were the same economic leaders who missed the crisis in the first place.

But like his predecessor, President Obama is missing what kind of change Americans really want and why there continues to be so much dissatisfaction. Americans are willing and ready to make that sacrifice to improve their nation and the future of this nation for their children - provided that burden is shared by all. The only problem is that no one has asked them to make that sacrifice for a common cause, and the window of opportunity for the Obama administration to come to the American people and unite them toward a common goal has closed or is closing quickly.

As measures to resuscitate the economy begin to peter out, the fragile underpinnings of the economy will begin to be exposed yet once again. The likelihood of throwing more money after the problem - in front of a mid term election - is becoming increasingly diminished. With no real economic catalyst to sustainable growth and with very little fixed after this crisis, one really needs to ask what does the Obama economic team do next?

One thing is for sure: the time to ask the American people to unite in a common goal passed long ago when the President first took office. This was the one option that has been squandered, and this is why Americans remain so dissatisfied.

By Guy Lerner

    http://thetechnicaltakedotcom.blogspot.com/

    Guy M. Lerner, MD is the founder of ARL Advisers, LLC and managing partner of ARL Investment Partners, L.P. Dr. Lerner utilizes a research driven approach to determine those factors which lead to sustainable moves in the markets. He has developed many proprietary tools and trading models in his quest to outperform. Over the past four years, Lerner has shared his innovative approach with the readers of RealMoney.com and TheStreet.com as a featured columnist. He has been a regular guest on the Money Man Radio Show, DEX-TV, routinely published in the some of the most widely-read financial publications and has been a marquee speaker at financial seminars around the world.

    © 2009 Copyright Guy Lerner - All Rights Reserved
    Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

    Guy Lerner Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules