A response to this post at Liberal Rapture.
Most of what Bush and Obama has done with the economy is to put lipstick on a pig. That's why the numbers are "farcically low" and yes everyone knows it. Those "economists yapping on TV" aren't economists, I doubt any of them has a solid economic background, most likely just the standard simple Keynesian background. They either can't see the forest for the trees or more simply they are just going with the propaganda that the Feds are feeding them.
CNBC, whose parent company is NBC, whose parent company is GE has a huge stake in towing the Administration line, lest they lose all those generous contracts. Yes it sounds like a conspiracy theory but that doesn't take away from the underlying message. You can't pay the people who are supposed to keep you accountable. Why do you think all those people bought all those mortgage backed securities, because the ratings agencies were being paid by the originators of those securities to rate them AAA. It was a huge con job, back with full faith and credit of the US Government, based on horrible Keynesian economic policies.
The truth of the matter is, everything to government is doing now is all wrong. They are treating the symptoms instead of the disease. More to the point they are treating the symptoms with the disease. Ultra low interest rates fueled the bubble, so what do they do...keep interest rates ultra low. An over investment in low income home ownership built the bubble, so what do they do...expand government housing subsidies for low income earners. They haven't learned anything, and it's naive to think they ever will. There is just too much money to be made and the politicians are on the take, just like any other day.
It will only get worse before it gets better. Housing prices haven't been allowed to correct themselves and the commercial real estate market is on the verge of collapse. Inflation will pick up again once all those reserves that the banks have start to flow into the economy. That will happen once money demand reaches the new equilibrium. Unemployment will stay high for years to come.