Our Changing Globe

Using his now familiar, half-full-half-empty metaphor, President Obama declared in a speech made at Georgetown University yesterday (April 14th) that the economy is moving in the right direction, whilst cautioning that the country is not yet in the clear.

He said that what we are now experiencing, is far from a normal downturn in the business cycle, and he put the blame squarely on greed and irresponsibility, adding that the problem is being worsened by both politicians that have an outsized interest in scoring points, and by an over-impatient media.

“There is no doubt that times are still tough. But from where we stand and for the very first time, we are beginning to see glimmers of hope. And beyond that, way off in the distance, we can see a vision of an America’s future that is far different than our troubled economic past”.

Obama’s speech sent a mixed financial message, which failed to offer any real comfort, and in spite of additional comments by the Federal Reserve Chairman, Ben Bernanke, who earlier said that, “the recession may be bottoming out”, the facts on the ground suggest no reason for such optimism, with just released statistics showing that retail sales fell in March by 1.1% which is something which was totally unexpected.

Obama made no important policy announcements, and simply painted a broad picture of what his administration had already done, adding that a complete recovery would depend on two things, “building a new foundation for the U.S. economy and making changes in the political landscape”.

Paraphrasing Jesus’ Sermon on the Mount, Obama said, “We cannot rebuild this economy on the same pile of sand. We must build our house upon a rock. We must lay a new foundation for growth and prosperity a foundation that will move us from an era of borrow and spend to one where we save and invest, where we consume less at home and send more exports abroad”.

Wrapping up his speech, he said, “When a crisis hits, there’s all too often a lurch from shock to trance, with everyone responding to the tempest of the moment until the furor has died away and the media coverage has moved on, instead of confronting the major challenges that will shape our future in a sustained and focused way, and this can’t be one of those times”.

Related posts:

1. Ten US Banks Needs A Total Of $75 Billion
2. The ‘Loan Modification Program’ Finally Gets Underway.
3. As Stocks Advanced The Number Of Defaulting Homebuyers Rose By 50%
4. The Economic News Is Both Good And Bad
5. The U.S. And The E.U. Are On An Economic Collision Course.