Can Obama make the recovery come quickly? the chance is slim:)

Can Obama make the recovery come quickly?
I feel a quick recovery is slim :(


The interest rate was cut to 0 by the Fed at the end of last year. Does Bernanke still have more “powerful” bullets? Will Fed cheer up Wall Street with more delicious foods?
Think of Japanese central bank that even tried negative interest rates to recover the economy. Failed! Japanese still refused to borrow/spend because they knew prices would fall and lacked confidence in financial institutions.
Bernanke's easy money policy can stimulate the flagging economy? Hope this bullet he fired will not trigger a lose-lose condition:)

HOPE up?

I am seeing the condition keeps deteriorating. Companies cut back on investment. Unemployment soars. Over 1.5 million jobless were created in the last 6 months in 2008. Corps can’t finance continuing operations or expansions with the corporate bond widen. The worldwide issued debt shrank by 75% in the 4th qtr 2008(per BIS).

Things are even worse: Reinvestment and earnings are dropping tremendously. Hardship limits our spending extremely. Asset prices on stocks, real estate and commodities are keeping steadily falling and the profits are greatly shrinking (this is so called DEFLATION. Terrible! Terrible!

New LEADSHIP will bring us changes?

Obama’s team addressed that they were trying hard to revive consumer spending with the $1 trillion stimulus package. But “$1 trillion barely covers the $800 billion that homeowners withdrew in home equity in 2007 alone”(from some news). Do you think it will be working?

I hope Obama whiz kids will direct us to the oasis. But I just don’t expect a lot of changes for a long while.

We are going to be still on the downhill from here. 2009 may still be a rough year.

Folks, the flight is not powerful and smooth right now for a long while. A quick recovery is slim. As a passenger in the flight, the best thing I can do is buckling up my seatbelt tightly, keeping my fingers crossed. Hope Obama’s team possesses proficient in flight skills, directing us to open wide field, an oasis would be the best.