"The economy is fabulous, JUST FABULOUS!" PR campaign?

[CoffeeCat]

Is anyone else feeling played?

First, we have Bernanke on "60 Minutes" declaring that the recession could be over this year.

Then, I pull up thestreet.com today and it's like "Happy Rainbow Unicorn Central--with Glittery Sprinkles".

Today's top stories include:
1.) Kass calling the bottom on the market (oh really...the bottom is here?)
2.) Bernake saying that the recession could end in 2009 (I've seen more evidence that it won't end in 2009, so why this call now?)
3.) The top story declares that "The Rally Continues". (Defining it a "rally" is editorializing at best)
4.) A story that asks,"Which Will be America's Next Top Biotech Stock?" (suggesting that stocks are improving and moving up)
5.) Citigroup Stock Rises (Even though this bank is insolvent, their release of "profits" is being touted as jubilant news from a healthy bank).

I'm not saying that it's all gloom and doom. I'm not saying that I want to see all gloom and doom.

My problem is the distinct feeling that the same people who manipulated us into investing in the stock market--are now trying
to pump us up with artificial sunshine on a bed of roses.

Maybe I'm so mistrustful, that I am suspect of their opinions. It's possible.

However, when a group of people begs you to go scuba diving--and you're attacked by sharks--is it wise to listen to those
same people who now declare, "Come on in! The water is warm and wonderful!"?

Everything I understand about our current economic situation--indicates that the basic fundamentals of the economy--are NOT strong.

The major banks are insolvent. Unemployment continues to soar. A second housing bubble will continue to burst in 2009 and 2010--that
will be bigger than the first burst. Americans are not spending--they're paying off credit cards and saving. Seventy percent of our
economy is fueled by consumers--who are now tearing up and paying off credit cards--and not taking out home-equity loans any longer.

If you don't share a negative forecast of the economy--I understand. However--I think most prudent people think that the
future is--at best--unknown. Isn't practically declaring a party-like economic atmosphere--a bit presumptuous?

This big "celebration" seems plastic to me. I'm wondering if others are feeling as if the corporatists and greed-mongers
are pumping us up with a load of hot air--once again.

[county worker]

1. If people think the economy will get worse they will do things that make it worse.

If they think it will get better they will do things to make it better. Spending is the key. We need to get people to save less and spend more. If they think things are getting better they will spend more.

[CoffeeCat]

5. People are not spending...

...because their hours have been cut, their jobs have been outsourced or their pay has been drastically reduced.

True, people are saving more because they're afraid. However, millions no longer have the cash.

Also--what kind of world do we live in where our economic health is dependent on people behaving irresponsibly?

When our economy was healthy--people were spending like drunken sailors. Many didn't even have the money to spend
and they were funding their spending sprees with credit cards and by using their homes as ATM machines.

Is that what we want to return to?

Do we want an economy that discourages saving for the future and emphasizes material possessions?

[county worker]

8. I am repeating what I heard economists say in the MSM.

[Ron Green]

7. Spend more on what, though?

More made-in-China crap from Wal*Mart? A pick-up truck that gets 22 mpg? How about a new gasoline-powered leaf blower?

Unless the sobering economic news causes people to make different purchasing choices, we haven't made a change. Recovery into simple consumerism won't be sustainable, and old wasteful goods and services must be allowed to die. Although the market always sells to people's basest wants, the magnitude of this crisis demands that we start to buy:

Locally-grown food
Repairable tools and appliances
Renewable-energy technology
Small-footprint housing
Zero-emission transportation

and so on.

[county worker]

9. See my post #8

[ixion]

2. every time there's a bounce, one of these idiots calls it the bottom

we're not at the bottom yet.

So, yeah, it's horsepuckey.

[Uzybone]

3. Slow down

everyone still says recovery is a long time away. You are ready to jump down someones throat at the first sign of any optimism. Optimism is not a bad thing.

[CoffeeCat]

6. I love optimism...

...but I don't like being sold down the river with a load of hot air.

I'm an optimistic person. As the economy has rolled into frightening territory, I've remained positive.
I continue to believe that change is not bad, and that we must remain flexible--and adjust to new
paradigms.

I'm talking about manipulations. I'm talking about the media creating a false front--that is absolutely untrue.

[Warpy]

4. Can we all say "dead cat bounce?"

The economy won't get any better until the two thirds of it represented by the consumer economy gets better. People are still cutting back to subsistence spending because they are terrified their jobs are on the chopping block, that they won't have enough money to retire on, and that nothing they have is safe anymore.

These jackasses think they can talk up a crippled economy, keep the dead cat bounce in the Dow going, and convince everybody out there that the economy's all better, we can all relax and play. That's just not going to happen until wages are supported, offshoring ends, and our manufacturing infrastructure is rebuilt.

I've got cash reserves and a shopping list. I'm not going shopping yet, and that should tell y'all how much I believe the people crowing about a week of stock gains after one of the largest short term dumps in history.