Pete the Banker: Hope, Change, Then Misery

October 21, 2011

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President Obama has presided over the largest decline of the American Standard of Living in decades.

“An unofficial gauge of human misery in the United States rose last month to a 28-year high as Americans struggled with rising inflation and high unemployment. The misery index — which is simply the sum of the country’s inflation and unemployment rates — rose to 13.0, pushed up by higher price data the government reported on Wednesday.” 


According to an article in the Christian Science Monitor, “Real median income is down 9.8 percent since the start of the recession through this June, according to Sentier Research in Annapolis, Md., citing census bureau data. Another is falling net worth – think about the value of your home and, if you have one, your retirement portfolio. A third is rising consumer prices, with inflation eroding people’s buying power by 3.25 percent since mid-2008

Additionally the above article points out that the total household wealth of Americans has fallen by over 8%, primarily the result of unemployment/under employment and declining housing values.  And now the National Association of Realtors has announced that existing home sales declined by 3%,
the likely precursor to further anticipated declines in housing prices predicted by Robert Shiller among others over the next several months.  Housing prices have declined by over 30% since the peak in housing in early 2006.

But then on his frequent campaign trips the President suggests the economy is continuing to improve, albeit with headwinds beyond his control.  Obviously, also beyond his control is the delivery of misery in lieu of hope and change.

Tell ’em where you saw it. Http://www.victoriataft.com