Time to withdraw; what was an absolute last week became mere signs and indicators today.
Still Got a Long Way
Only a couple of days after US administration publicly announced that the “recession is over“, Barak Obama seems to be lowering expectations and claims there are indicators of improvement but America still “got a long way to go”. On his speech today (Monday) at the White House Obama was joined by members of his Economic Recovery Advisory Board and by Paul Volcker, one of his chief financial advisers and former chairman of the Federal Reserve. Obama said that the US has came a long way since January, when he stepped into office, when at that time US was “losing 700,000 jobs per month” and “there was fear of another Great Depression”. “We have pulled the economy back from the brink” said Obama.
Obama referred to last week’s out of the blue announcement and said it was “good news” to hear about the US GDP growing once again. He also said that there are signs starting (and starting only) of “stabilization and, indeed, some improvement” in US and Global economy. Nevertheless, he carefully added that the administration is obligated to take on further steps to support the job market and decrease the national debt. “Actions that we took swiftly through the Recovery Act helped to stem what could have been a disastrous situation for the economy” he commented gladly and added that the actions have produced some positive improvement, all while comparing the situation today to what was at the time Bush closed up shop.
“But the reason we’re here today is because we just are not where we need to be yet” he then changed direction. “We are still seeing production levels that are significantly below peak levels and most distressing is the fact that job growth continues to lag” he added. Obama continued by saying there is no reason why the administration should not be able to create more workplaces as needed and even create the continuous economic growth everybody is expecting. Yet, probably again with the lessons of the sudden weird-like announcement last week by the Ministry of Commerce, he backed himself up by saying that many job losses are expected within the upcoming weeks and months.
In conclusion, President Obama put it best in his speech- “We’ve got a long way to go“. Given the severity of the job losses, more than 7 million jobs since the start of the recession in December 2007 and the unemployment rate which had risen to 9.8% last month, even with the 787 billion dollars worth financial bailout package, he is absolutely correct, and it’s going to require him to lead some innovative action to overcome this deficit and maybe finally prove his administration.
The CEO Game.
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