Obama's Doomsday talk a sham?

Do we really face the possibility of an irreversible crisis? Well, yes. Not the one Mr. Obama describes, but the one he may cause.

Forget, for a moment, the economic weathermen forecasting the economic equivalent of global warming. Look instead at the historical data.

Claims Mr. Obama, "We have inherited an economic crisis as deep and as dire as any since the Great Depression."

But the historical figures for the gross domestic product (GDP), calculated by the U.S. Bureau Economic Analysis, say something else. After growing by 0.9 percent and 2.8 percent in the first two quarters of 2008, GDP declined by 0.5 percent and 3.5 percent in the third and fourth quarters of the year. Is that "an economic crisis as deep and as dire as any since the Great Depression"?

Well, 1949 was far worse. GDP declined by 5.8 percent in the first quarter of that year and 1.2 percent in the second. It rebounded by 4.6 percent in the third, but then dropped 4 percent in the fourth. America did not start an irreversible decline that year. In 1950, the economy grew by an amazing 17.4 percent in the first quarter, 12.5 percent in the second, 16.6 percent in the third and 7.5 percent in the fourth.

Let's make one thing clear. The potential for disaster on the scale of the 1930's is there. The question should be can we make the right moves to avoid it?

The stim bill was a very bad first step. And unless Geithner can get his act together and quickly, his "Financial Stability Act" might just tip the scales and send us crashing into a bad despression.

But Jeffrey has a point. A true leader would point out the potential for meltdown but also try and assure people that the downturn we are experiencing has historical precedent not related to the Great Depression.

But if Obama had tried to be a good president instead of a partisan politician, the stim bill would never have been passed in a million years. Hence, the wild fear mongering by Obama to scare people into supporting the monster.

Read the whole thing for some eye opening quotes from Obama and Jeffrey's stats on other downturns.

Hat Tip: Ed Lasky