“In the meantime, has anyone noticed that the Republican House of Representatives hasn’t done sh*t to help this country in quite some time? No jobs bill. No infrastructure bill. No nothing. The economy is slowly improving in spite of them.

P.S. And yes boys the economy is improving — consumer confidence rising, new homes rising — two strong indicators. Deficit shrinking. Notice, I’m not going to mention the stock market which is basically a casino. I won’t even claim that as a positive indicator.

Bed time. See ya on the other side.” — Rutherford

Recognizing the strong financial skills Rutherford possesses… I found the above comment, entertaining. Again, it boggles the mind how someone who went to an “Ivory Tower” institution can be so ignorant. Granted, MSNBC doesn’t get into money, and thus he’s likely never going to exposed to facts and stats, but still… damn.

This morning’s 11.5% week-over-week plunge in mortgage applications is the fourth week of fading demand in a row as it appears the bloom is very much off the rose of the second-coming of the housing bubble. This makes it the worst plunge in mortgage applications since June 2009 and the lowest level of activity since December 2011. Wondering how this is possible? We explained in detail here but this collapse in mortgage demand fits perfectly with Mark Hanson’s insights that a number of “large private mortgage bankers had mass layoffs last Friday to the tune of 25% to 50% of their operations staff.” This all feels very deja vu all over again.

Zero Hedge does a great job of expanding on the above with this:

The airwaves are full of stories of economic recovery. One trumpeted recently has been the rapid recovery in housing, at least as measured in prices. The problem is, a good portion of the rebound in house prices in many markets has less to do with renewed optimism, new jobs, and rising wages, and more to do with big money investors fueled by the ultra-cheap money policies of the Fed. It seems entirely wrong that the Fed bailed out big banks and made money excessively cheap for institutions, and that this is being used to price ordinary people out of the housing market.  Said another way, the Fed prints fake money out of thin air, and some companies use that same money to buy real things like houses and then rent them out to real people trying to live real lives.

And then of course there’s this:

So much for the thesis of declining labor slack and rising labor leverage. Moments ago the BLS reported its Q1 labor costs which poured cold water over all recent hypotheses that the US worker’s plight is improving. It isn’t: productivity increased by 0.5% in Q1 in ling with expectations of 0.6% (on what is not exactly clear – everyone on their iPhones?) but it was labor costs which plunged -4.3% on expectations of a +0.5% increase driven by a 3.8% collapse in hourly compensation that was the stunner. This was the biggest labor cost drop in four years and the biggest collapse in hourly compensation in well, ever and confirms our observations from the last NFP report that quantity gains in jobs continue to be offset by quality declines in actual worker pay. As a reminder we were scratching our heads following the soaring Q4 labor cost and declining productivity data which made no sense in the general context of deteriorating labor conditions. Following this print, it all falls back into place and confirms the Q4 data was nothing but an outlier.

As for consumer confidence, again, I guess things are relative, but still, context doesn’t really help Rutherford’s position.

Very clear trend so far of lower highs and lower lows. Since the all-time high in May 2000 at 144.70 we have been in a clear downtrend Data on this indicator only goes back to Feb 1967 and prior to the all-time high in 2000 the peak had been 142.30 in October 1968 (right at the start of the lost 16 year period from 1966-1982) LET US BE CLEAR there is no certainty at this point that a high has been posted in this move…but there are good reasons to suspect that it may have been (or at least that we are very close to that dynamic). If the chart above is consistent then the peak may well come from either the May or the June number.

We are getting “relative triple divergence” between consumer confidence and the equity market. As the S&P has hit a high, higher high and now 3rd higher high consumer confidence has hit a high, lower high and lower high again. This suggests a larger disconnect between the level of “feel good” at the consumer level and the elevated level of the Equity market in an economy that is about 70% consumer driven.

So much for that “improving” economic confidence. Since we’ve debunked in context—something the left avoids at all costs—the left’s mantra of improving housing, improving consumer confidence and improved consumer purchasing power, let’s get into some inconvenient truths about where we stand as a nation, under Obama, economically.

  • Food Stamps at Record High: Citing the latest statistics released by the Department of Agriculture, the Weekly Standard reported food stamp participation was at an average of 46,609,072 people every month of 2012. In December of last year, 47,791,996 people received food stamps, or one in seven Americans. This is up from 28,223,000 in 2008.
  • U.S. Labor Force Participation Rate Lowest Since 1979: Instead, the number of Americans in the labor force — those who have a job or are looking for one — fell by nearly half a million people from February to March, the government said Friday. And the percentage of working-age adults in the labor force — what’s called the participation rate — fell to 63.3 percent last month. It’s the lowest such figure since May 1979.
  • Americans Have Recovered Only 45% Of Wealth Lost During Recession: The research from the St. Louis Fed shows that households had accumulated net worth totaling $66 trillion at the end of last year. After adjusting for inflation and population growth, the bank found that meant families on average have only made up 45 percent of the decline in their net worth since the peak of the boom in 2007. In addition, most of the improvement was due to gains in the stock market, according to the report, primarily benefiting wealthy families. That means the recovery for most households was even weaker.
  • HHS Already Rationing Enrollment In Obamacare’s Pre-Existing Condition Plan: A pre-existing condition health insurance program established by Obamacare is already straining its own budget and, to control costs, the administration’s Health and Human Services Department (HHS) has stopped enrolling any new people in the program, according to an audit by the General Accountability Office (GAO). In addition, to further control spending, HHS has directed the program to shift more of the costs onto the current enrollees, thus raising the out-of-pocket health care expenses for the people with pre-existing conditions.
  • CBO: Between 30-55 Million People Will Remain Uninsured Under Obamacare: However, for those who have kept up with Congressional Budget Office (CBO) projections on the implementation and progress of Obamacare over the next decade, the results will not be all that surprising.  On the contrary, the most recent report issued by the CBO in May appears pessimistic by comparison. Of the 55 million “Uninsured Nonelderly People” the report lists for 2013, only 11 million, or 20 percent, are projected to obtain insurance during 2014; the number of uninsured falls only to 44 million next year according to the CBO.  This leaves a full 80 percent uninsured, significantly more than the 67 percent found by the survey.

We haven’t even begun to discuss the myriad of scandals afflicting the Administration right now. From the IRS targeting political opponents based on religious and ideological beliefs, to the DoJ targeting journalists for reporting stories critical of the Administration, to the HHS targeting corporations that it is responsible to regulate for private donations to fund Obamacare implementation, to the Administration stonewalling, stalling, lying and obstructing the release of Congressionally subpoenaed information on all of these scandals as well as the travesty that is Benghazi.

Of course, Rutherford—or any liberal for that matter—refuses to address any of these in substance. The left is terrified right now. The Messiah’s feet are getting wet and the illusion of infallibility is crumbling. We heard consistently through the last five years about how Obama was so much smarter than everyone else, that his IQ was off the charts—potentially higher than any other President in history—and that we, as mere mortals, couldn’t grasp the concepts Obama envisioned for us because we were simply not intelligent enough. Just believe. Hope and change, however, have now evolved into suspended disbelief. Brilliance and genius are now detachment and ineptitude. He’s too distracted (with thinking I suppose), too detached (golf anyone?). His greatest failure—dare we suggest such—is that he has not been involved in the trenches of his Administration, and thus good natured people have strayed…

Never could Obama be involved in any of this. Of course, this requires the suspension of disbelief when Obama’s Deputy Campaign Manager was meeting with the IRS Director in the White House in the heat of the 2012 campaign. Further suspension is required as both the Solicitor General and the White House Chief of Staff knew in mid-2012 of the IRS targeting of conservative groups. Of course, we could just cut out the middle man, while suspending belief, and ignore the simple fact that the IRS Director met with Obama more than any other cabinet official, and that in the plethora of meetings, he never once mentioned the targeting of conservatives—that he was well aware of at the time—to the man running for office against conservatives.

As for the GOP not doing “shit”, well, that’s… shit—as in BULLSHIT.

http://majorityleader.gov/JobsTracker/

There are 40 job bills currently stalled in the DEMOCRAT controlled Senate.

The left is completely devoid of an argument right now. Everything they ever could have leveled at George W. Bush has been amplified a hundred fold under Obama. And today we get this tid bit of data:

Washington is reeling after a court order was uncovered last night showing Verizon has secretly been handing over reams of customer phone records to the National Security Agency on a daily basis. The records don’t contain the content of phone calls—so, just to be clear, this isn’t wiretapping—but they do contain information such as phone numbers, the location and duration of calls, and subscriber and handset ID numbers, all of which fall under the category of “telephony metadata.”

The irony of course is that George Orwell’s 1984 was published 64 years ago… today.

This Administration is out of control.

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