Tuesday, July 15, 2008

Investment professionals see possible 'Depression' on horizon

Investment professionals see possible 'Depression' on horizon

At this juncture of the Bush administration 'experience', I've come to understand and accept that the more they talk and the more they deny, the more dire the circumstances. If someone requires a point of reference, think global warming; think Hurricane Katrina; think energy crisis etc. That is why I have been convinced for months that the U.S. economy is headed for, if not now officially in, a Depression. I came to this conclusion based upon the amount of time and energy that the Bush crew had invested in trying to convince the American people that the economy was doing just fine … so fine in fact, that the only recession was the one in the collective's heads.

The more the Bush administration and its supporters insist that the economy is doing well, all the more certain a Depression must be.

FOX News, the Republican Party's version of the old Soviet PRAVDA news agency, ridiculed anyone that dared doubt Dear Bush's rose-colored economic prognostications and the network double-plus-raged against all courageous enough to utter the "Depression" word. Wonder what FOX News will do when they hear David Bullock, managing director of a major investment fund, bandy about the term "Depression"? That's exactly the word Bullock used to describe the situation surrounding the government's Freddie and Fannie bailout.

Here is Bullock's assessment as published in the New York Times:

“One could argue that government measures validated concerns about how bad things really are,” said David Bullock, managing director of Advent Capital Management, an investment fund in New York. “We are closer to the Depression scenario than not.”

As I expressed previously: the more the Bush crowd talks and denies, the more dire the circumstances. I guess though, technically, when Mister Bush says the country isn't headed for a recession, he isn't lying. That is because the country is headed for, if not all ready in a Depression.

No comments: