(Courtesy of Greg Hunter of www.USAWatchdog.com)
The economic “recovery” talk picked up some speed yesterday as retail sales for August were announced. The government said sales were up a whopping .4%. It seemed everybody on financial TV was talking like the worst is now behind us, and there was no chance of a dreaded “double-dip” in the economy. Even Warren Buffett ruled out a falling economy. Yesterday, Bloomberg quoted the “Oracle of Omaha” in a report where he said, “I am a huge bull on this country,” Buffett, Berkshire’s chief executive officer, said today in remarks to the Montana Economic Development Summit. “We will not have a double-dip recession at all. I see our businesses coming back almost across the board.” (Click here for the complete Bloomberg report.)
I guess I’d be bullish on America, too, if companies I invested in (Wells Fargo, American Express, GE and Goldman Sachs, to name a few) all got taxpayer bailouts to help them survive the economic meltdown in 2008. Mr. Buffett might not look so smart or be so optimistic if those bailouts had not happened.
Last week, FDIC Chairman Shelia Bair said pretty much the same thing as Mr. Buffett. Bair said on CNBC, “We are not predicting–I would use the “we” for the FDIC. I rely on a lot of very smart economists at the FDIC in helping us make those judgments, but right now, no, our economic staff do not predict a double dip.” (Click here to see Bair’s entire CNBC interview.) This optimism is despite the recent addition of 54 more banks to the “Troubled Bank” list for a new grand total of 829. The majority of those banks, according to recent comments by renowned economist Nouriel Roubini, will go bust.
Didn’t we just get news that car sales are down sharply? Yes. (Click here.) Didn’t we just get news that home sales are down sharply? Yes. (Click here.) Don’t we still have 15 million Americans unemployed? Yes. (Click here.) Forget the fantasy 9.6% number the government claims. The real figure is 22%, if unemployment was figured the same way the Bureau of Labor Statistics did it before 1994.