Posted by
ApolloSpeaks on Wednesday, October 21, 2009 11:09:44 AM
Rod Blagojevich and Roland Burris. Omens of Obama's economic Waterloo
1936, six years into the Great Depression, the US economy was in a jobless recovery*. All the main economic indicators, including the DOW, had more or less regained the levels of the late 1920s before the Great Crash-except for unemployment which remained high at 16%. Then came the crash of 1937 when the DOW came tumbling down and the bottom fell out of the New Deal with two million Americans losing their jobs**.
*
Millions of unemployed Americans were given make work (not real work) jobs on public projects by the Works Projects Administration (WPA).
**Real jobs in the private sector.
History is about to repeat itself. The 10,000 bull market is as phony and false as Obama's economic recovery plan-a huge political pork laden slush fund to pay off and reelect political allies that has done squat to create jobs and restore growth to the economy. Like the housing market boom (which Bernanke predicted would never crash) the stock market surge is an unsustainable bubble certain to bust-driven by overpriced stocks especially in the financial sector where zombie banks are speculating with TARP money and cooking their books by hiding hundreds and billions in losses with the blessing of Bernanke, Geithner, Dodd and the Feds.
This fraud is being done by new rules that allow banks to value their toxic assets (mortgage backed securities, etc) not at their real worth but on their projected future hoped for value at maturity. So if Chase, for example, has a mortgage backed security presently worth zero that could have value in the future Chase's balance sheet reflects that future value-not its actual worth. It's a suckers game of smoke and mirrors (similar to the Enron scam) designed to mislead the public and investors by making the banks look healthier than they are (
see). And this is what's leading Obama's certain-to-bust phony bull market.
But returning to 1937, the year FDR met his economic Waterloo, this was the year that Roland Burris was born*-the man Rod Blagojevich chose to replace Barack Obama in the Senate. An ominous sign of Obama's presidential fate and bad times ahead for the economy (
see).
*Burris was born on August 3rd one day before Obama celebrates his birthday.