Just Thinking

Typical unemployment is about 6%. In graduate school we were told that full employment is when unemployment is at 4.5%.  Anything lower and we have negative productivity. Today the unemployment is 9.5 - 9.6% according to the government. It is more likely 16-19% if we count those that have stopped looking. If we assume that the government numbers as true, we have over 90% of our employment labor EMPLOYED. Many of our unemployed are on protracted unemployment pay outs. During the summer a significant number of these unemployed are 17-21 year olds (80% unemployed). Just thinking that this isn't so bad unless you are one of the unemployed.

What's the difference between a recession and a depression.  A recession is when your neighbor is unemployed.  A depression is when you are unemployed.

Most public companies have either delivered or recapitalized debt at ungodly low interest rates increasing profitability. There are 10 states with unemployment below 6%. Just thinking that the economy isn't so bad.

The stimulus.... about two-thirds is still unspent. So is this politically motivated or media distortion? Just thinking we don't have to spend the other two-thirds.

It seems the real squeeze is with the constipated banks protecting their assets instead of lending to small businesses and normally qualified buyers. Simply by extending mortgage terms to 40- or 50 years would reduce their at risk/under-performing loans. Thus, their balance sheets would be better while stabilizing neighborhood home prices as fewer defaults would be likely. Just thinking that this could work.

Until funded debt and reasonable leverage resumes by the industry that initially led us in a downward economic spiral through bad risks that taxpayers have now covered, they will keep us stagnant. However this is not dire. It requires more thought and leadership versus blaming and hand wringing. Just thinking.

Very simply, if congress would get their heads out of . . . the sand and start doing what they are paid to do -- uphold the Constitution.  Do what is right for the USA and not what is requested by a socialistic, Cloward-Piven Strategy based administration.  We could fix this quickly. Just thinking:

1. Eliminate Fanny Mae and Freddy Mac (They've had their chances and failed!);
2. Eliminate Capital Gains Taxes (Housing industry would jump off the charts);
3. Make Bush’s tax cuts permanent (The government has mispent enough $!);
4. Eliminate the Department of Energy (What are they good for?)
5. Eliminate the Department of Education (What have they done to improve education in the USA?)
6. Establish the 28th amendment that Congress will pass no law that exempts Congress from participating in that law (Duh!).

 Done!

We may not be able to fix stupid, but we don't have to reelect it!