LOGO: Truthdig: Drilling Beneath the Headlines. A Progressive Journal of News and Opinion. Editor, Robert Scheer. Publisher, Zuade Kaufman. Winner 2013 Webby Awards for Best Political Website
May 18, 2013

 Choose a size
Text Size

Trending:     chris hedges     economy     elizabeth warren     politics     robert scheer
Most Read

Letter From Birmingham Jail

Chilling: Arctic Tundra ‘Will Turn to Forest’

'The Daily Show': Stewart Slams Hypocrites Cheney and Rumsfeld

'Left, Right & Center': The White House Scandal Trifecta

The History That Birthed the Tsarnaev Boys

Most Comments
Most Emailed

Reports
 * NEW! * Chilling: Arctic Tundra ‘Will Turn to Forest’
How the IRS’ Nonprofit Division Got So Dysfunctional

Ear to the Ground

A/V Booth

Arts & Culture
Act of Congress
Daily Rituals
The Girls of Atomic City

Digs

Truthdig Bazaar
Canada

Canada

By Richard Ford
$27.99

more items

 
Ear to the Ground

Reich: The Recovery’s False Glow Is Fading

Email this item Email    Print this item Print    Share this item... Share

Posted on Jun 13, 2011
Flickr / Policy Network

Robert Reich, former secretary of labor.

After six straight weeks of a falling Dow and a period of stalled economic growth, the stagnation of national recovery is glaringly visible to everyone—except our representatives in Washington, says Robert Reich. —ARK

Robert Reich:

Over the past year, the Street lured small investors back into the market on the smokey promises that the worst is over and stock prices are bound to rise. The lure became a self-fulfilling prophesy. As investors re-entered the market, they bid up stock prices. Hence, the mirror.

Insiders on the Street are always the first to bail when they sense they’ve been overselling, as they started to do a few weeks ago. This gives them a second opportunity to make money off small investors — by selling short.

The nation’s second-largest financial redistribution in history (the largest, on a percentage basis, occurred in 1929) came in 2007 and 2008 – from small investors and their pension funds to the Street’s savvy traders who shorted them. Now it’s been repeated, although on a smaller scale.

And Washington? Completely clueless. Our representatives in the nation’s capital continue to obsess about future budget deficits and games of chicken over raising the debt ceiling — neither of which has anything at all to do with the stalled recovery and the carnage on the Street.

Read more

More Below the Ad

Advertisement


New and Improved Comments

If you have trouble leaving a comment, review this help page. Still having problems? Let us know. If you find yourself moderated, take a moment to review our comment policy.

By Steve E, June 15, 2011 at 12:06 pm Link to this comment

It’s a true bummer knowing you’ve been screwed and are gonna be screwed even
more. Time for another dose of “hope and change”.

Report this

By Lew Ciefer, June 15, 2011 at 11:52 am Link to this comment

@ Lafayette, June 15 at 4:36 am Link to this comment

Dreams can come true - it depends upon the collective will.

Yeah right.

The former U.S.S.R. and Red China are the two prime examples of collectivists’ dreams come true. The U.S.S.R. no longer exists and Red China long ago starting moving toward a free market economic system to prevent suffering the same fate.

If you’re really into the collectivists’ dream come true —and not just a another deadbeat loser looking for someone else to pay your way— you might want to consider immigrating to North Korea. I hear people there are actually living a collectivists’ life of heaven on earth.

What we see happening in the world today is a regression to a neo-medieval theocracy. This time, instead of Catholicism or Protestantism or Islamism, the human race is suffering the oppression of the fundamentalist Marxist communist/socialist religion of the State as God.

So don’t worry, be happy, because the incompetent social workers that are your leaders, ie the W.H.‘s grand panjandrum, Hillary Clinton, et al, will soon have you wishing for the good old days of Stalin’s Russia and Mao’s Great Leap Forward.

Report this

By phreedom, June 15, 2011 at 7:29 am Link to this comment

Mr. Reich knows what he is talking about,

But most of have wondered; “does knowing this stuff
really matter?” Since now every aspects of
enlightenment, intelligence and goodwill have become
commodities to be manipulated and bet
against(profitably).

Imagine, that aspiration for common good or welfare
is gamed and when enough have bought into that
game/possibility, well, our rich bosses get out,
cashing in on their successful campaign of over-
valuating freedom and justice, so much so it appears
attainable to most, the pitch is always so perfect.

After the “profit taking off the hope of small
citizens”, the profiteers take huge short positions
against the public’s rightful willingness to believe
in better circumstances for themselves and their
families. Making wealth off of us, coming and going,
based on our fabricated desire that beating our
casino of government is possible. Since the house(our
wall street government) knows all too well that “the
small investors into the American dreamland”, will
inevitably drive “the market for better days”,  to
levels of the ridiculously overplayed,  making the
“slide back to reality” completely centered on the
backs of the common man/woman.

However, to be hopeful today is to believe that the
carnage on main street is so severe, that eventually
the game equating psychological thresholds of the
suffering with the actually material thresholds of
the suffering. 

I think more emphasis should be on regulating
financial and/or economic propaganda, versus
financial products or services. The freedom, or
deregulation, of the “wealthy game setters” to “lure”
and/or manipulate the perceptions of the people,
who’s material conditions do mean life and death,
health or sickness for them, well, to influence these
people to bet against themselves, or worse to
paralyze from effective and correct action towards
their own welfare is where the real crime is being
perpetrated.

When the effects of financial and or economic
propaganda is so egregious that people are actually
dying because of it,,,well then, those people who
orchestrate such deadly information distortions
should be put in jail and muzzled for the duration.
This fatal form of freedom of speech, that
extinguishes lives and livelihoods, constitutes
murder and sickening mayhem.

The belief that the manipulation of the citizenry’s
perception of the conditions of their sovereignty’s
economic state, well, that this manipulation is
nothing more than a form of viable economic
policy/remedy, will cause or promote a beneficial
outcome in favor of common citizens, is a big lie!
Especially, when such a lie causes death and mortal
hardship of its’ people. Blatant and active
distortion of a sovereignty’s economic/financial
condition is truly an act of treason against that
sovereignty’s citizenry, when cultural death and
destruction is a dliberate consequence.

To know what is going on today,
economically/financially,  is only meaningfully, and
sadly so, if that knowledge or awareness, of it,,
well,  outstrips, outlasts, outlives,,  the
propaganda that has attempted to keep it hidden and
acceptable. 

I think Mr. Reich’s comments or insights may be at
the cusp of this battle between a very aggressively
active form of economic/financial propaganda and a
more or less passive resistance to it. An active
passivity, though growing effective, due to the
extremely long period of time this type of propaganda
has been used and will need to be used to keep
American awareness, at bay and ineffective, as to the
true conditions of their lives and their system.

Rhuen Phreed
231 Park Drive, #40
Boston, Ma.

Report this
THX 1133 is not in the movie...'s avatar

By THX 1133 is not in the movie..., June 15, 2011 at 5:03 am Link to this comment

Do you know why its so important to get the economy
moving? Because the rich are actually having to live
off of their principle. They don’t even think about the
unemployed much less care.
They’re not amassing more wealth than the excess of
their expenditures.
But the real problem for us is the lack of a cohesive
“force” for lack of a better word, to unite under.
Not gonna happen; get over it!
Find communities to join and get as independent of the
GRID as is humanly possible. cheers.

Report this
Lafayette's avatar

By Lafayette, June 15, 2011 at 4:36 am Link to this comment

SOCIAL JUSTICE

RL: Still dreaming socialist dreams I see.

Dreams can come true - it depends upon the collective will.

Come to Europe to see how it milks the Free Enterprise Cash-cow to spend on Public Services. And still produces not only a more equitable Income Distribution but its fair share of multi-millionaires—not in the least inhibiting initiative, ambition or innovation.

That aint no “dream”, it’s a fact. The US is indeed economically unfair - but Americans cannot seem to understand how Europe “got it right”. By means of Social-Democrat government policies that level the playing-field (by means of taxation and Social Investments) and produce economic outcomes that are more fair to more people.

It’s called Social Justice. Try it, you’ll like it ...

Report this
RayLan's avatar

By RayLan, June 15, 2011 at 2:31 am Link to this comment

@Lafayette
“As for America, there’s only one way to redress the situation. By means of a Progressive Agenda that puts first and foremost the repair of Income Inequality.”
Still dreaming socialist dreams I see.

Report this
Lafayette's avatar

By Lafayette, June 15, 2011 at 1:48 am Link to this comment

WE, THE SHEEPLE

Does anyone in their right mind think that the people who caused this mess are going to fix things?

Still in denial, I see.

You are convinced that “dark forces”, the “they” that you talk about, are responsible for our Present Mess of a nation? Perhaps “they” are, but who gave them the power to do so?

We, the sheeple.

Nope, bitchin’-in-a-a-blog about haw we are so “oppressed” just ain’t on. Want to see oppression? Go to China, Syria or North Korea and start “bitchin”.

As for America, there’s only one way to redress the situation. By means of a Progressive Agenda that puts first and foremost the repair of Income Inequality. And how does that happen?

By increasing drastically Marginal Income and Capital Gains taxes that de-incentivizes the FatCat Plutocrats to coerce politicians to allow their manipulation of markets. As in Health Care. As in the M-I-C. As in agricultural subsidies. As in telecoms. As in …. ad nauseam.

Then, and only then, will the added tax revenues allow us do some Stimulus Spending and help reduce the National Debt.

Any study of the above mentioned markets shows how they have been tweaked to favor particular industrial groups – and who pays the additional cost-price of warped markets? Jack ‘n Jill America.

But, of course, if it makes you feel better to bitch-in-a-blog, then add your clutter to the mainstream. Instead of getting off their asses, everybody’s doin’ it. It’s called Cheap Catharsis and has the same effect - like a drug. We always need more of it, because it cures nothing.

MY POINT

Real change can only happen at the ballot box, where we put in place representatives committed to profound reform of the American economy and its devious political practices. As “pinko-commie-socialist” as those reforms may appear presently to some ignorant Americans.

Yes, America must give up its puerile notion that Free Enterprise always and forever “gets it right” – because the competent analyses of Income Distribution show how very wrong that notion is.

Free Enterprise, combined by ridiculously low taxation, “gets it right” for a select group of individuals (only 20% of the population). Read the facts of an in-depth study of Income Distribution in America here.

Reich will be sooooo proud of you ...

Report this
Lafayette's avatar

By Lafayette, June 15, 2011 at 12:07 am Link to this comment

POLITICAL NEANDERTHALS

{… except our representatives in Washington, says Robert Reich. }

“Our” representatives?

Reich understands what is going on. The Dems are being given the same sordidly perverse treatment as Billy-Boy Clinton. The Replicants are trying to gridlock them such that no Stimulus Spending issues from LaLaLand on the Potomac. In that manner, the political calculus goes: “Americans will be so fed up with the Dems, like at the mid-terms, that they will vote overwhelmingly for the Replicants - who will bathe once again in the afterglow of political power”.

And the unemployed be damned. Who are they, anyway? Nothing but road-kill on the Highway of Life.

That is the level to which American democracy has sunk in America. Uncle Sam, hang your head in shame. An electorate has become so stupid as to let themselves be bamboozled by Political Neanderthals.

MY POINT: Spoiled Brats

I will ask and answer the same question, yet again, “Who put these scoundrels in control of both the HofR and indirectly of the Senate?” We, the sheeple, upset because BO & Co were not Miracle Workers and could not pull us out of the worst Recession since the 1930s in no time flat.

Even the least-worst of recessions take two years from which to recover – and this last one resulted from an almost cataclysmic shutdown of the economy. We were lucky it was not much, much worse and it will surely take at least 4/5 years to fully overcome – which is about the historical average.

But are the American people feeling “lucky”? Nope, they are behaving like Spoiled Brats - still blaming this one as a Do-Nothing Administration. (A PotUS cannot spend money stimulating the economy unless the bill issues from the HofR - and that aint gonna happin’.)

So we deserve another Replicant Administration. That will do nothing and let the economy repair itself at its own pace. But then they’ll rush to take the credit for a “Repaired Economy” that could have happened four years earlier - except it didn’t because of their political shenanigans.

Report this
prisnersdilema's avatar

By prisnersdilema, June 14, 2011 at 8:53 pm Link to this comment

Does anyone in their right mind think that the people who caused this mess are going to fix things?

Their incapable of doing anything, their still deluded, still believing that they know what to do, still trying to convince people to be a little more patient, as the blood runs out of your body. They will be asking you for your patience as the last drop of your blood trickles out on to the pavement.

Report this
RayLan's avatar

By RayLan, June 14, 2011 at 7:11 pm Link to this comment

The baby boomers’ kids are running the show now - an elite of materialistic brain trust going to work for the big finance companies - they’ve worked the unregulated system as far as it can go - over the brink - The sacro-sanct Titanic of capitalist corporate expansion - going down for the third time. Now that’s not smart.

Report this

By Lew Ciefer, June 14, 2011 at 4:52 pm Link to this comment

Don’t worry gang. I hear Obuma is going to sleep on it for about 16 hrs. and come up with a whole new plan to save the economy, get even more shovel-ready jobs than before, and drive the nation off the cliff in style.

VOTE DEMOCRAT 2012!:)

Report this

By madisolation, June 14, 2011 at 7:25 am Link to this comment

If Reich cares so much about the American worker, why is he crossing the picket line and writing for Huffington Post?
“While support for the picket line has been strong, some progressives leaders who have worked on projects heavily funded by organized labor—such as Former U.S. Secretary of Labor Robert Reich, American Prospect Editor Robert Kuttner, Robert Creamer of Americans United for Change, and bloggers at the labor funded Campaign for America’s Future—have continued to blog at Huffington despite calls from union leaders to not blog there.”
http://www.commondreams.org/headline/2011/06/14-2

Report this
Blackspeare's avatar

By Blackspeare, June 14, 2011 at 7:19 am Link to this comment

One thing we know fersure is that the Republicans will do nothing
to help the economy before November, 2012.  They need a poor
economy to drive Obama from the White House.  but we know the
economy, in spite of everything, is cyclical and should an upswing
occurs prior to election, Obama will get his second term.  A
president can artificially spur the economy for a short time——
should be an interesting campaign.

Report this

By solidarity forever, June 14, 2011 at 6:57 am Link to this comment
(Unregistered commenter)

Hey Reich, 

Why won’t you honor the Huffington Post picketline?

Those workers are struggling to get paid.  You are not. 

Stop being a hypocrite and stop posting at the Huffington Post!

Report this
prisnersdilema's avatar

By prisnersdilema, June 14, 2011 at 6:19 am Link to this comment

No matter,  there has never even any recovery, just a competition of lies. The
corporations keep doing everything they did to destroy this country while maximizing
their profits. During this so called down turn many of them made record profits. They
made them by laying off millions of workers, and sending jobs over seas. No matter how
the politicians play around with the money supply, the corporations will continue to do
just that. That’s their plan for our future, and our present. Send all the jobs overseas,
maximize profit, buy off the politicians, tout free enterprise as the only solution to every
problem. Lie your way out of what you have done.

Report this

By Fred LaMotte, June 14, 2011 at 5:33 am Link to this comment

The giveaway that this nation is run from Wall St. is that no one questions the seriousness of the economic crisis as long as the stock market is doing well: only when the DOW-JONES falls do people get worried. The rest of us don’t matter.

Report this

By jimch, June 13, 2011 at 11:24 pm Link to this comment

Alas. Poor Robert. He has but few friends among his peers it seems to me, and an apparent lack of credibility as well nowadays. No one pays much attention to what he has to say regarding the economic climate in the country. He’s somewhat like us posters here on TD in that our posts essentially fall on deaf ears but it makes us feel better.

Report this

By Dean B, June 13, 2011 at 10:20 pm Link to this comment
(Unregistered commenter)

Probably not worth getting your head chopped off for a loaf of bread.

Report this

By Steve E, June 13, 2011 at 8:27 pm Link to this comment

It’s gonna be a long cold winter, time to move south. How much is a loaf of bread
in Mexico nowadays?

Report this
Newsletter

sign up to get updates


 
 
 
 
Join the Liberal Blog Advertising Network
 
 
 
 
 
 
 

A Progressive Journal of News and Opinion. Editor, Robert Scheer. Publisher, Zuade Kaufman.
© 2013 Truthdig, LLC. All rights reserved.