Today’s Economic Forecast

November 10, 2008, 12:00 pm; posted by
Filed under Articles, David, Featured, Humor  | 1 Comment

More bad news out of the financial sector today, as Goldman Sachs reported that although orders of durable goods were up 3% over the last quarter, those orders, due to a filing error, were placed in a back room under a bag containing Pork Belly Futures — ruining the orders and causing a downturn in the short-term manufacturing market.

This news was especially troubling on the heels of an announcement that Sweet Light Crude Oil had risen $8.75 per barrel to close at $182.50 for spring delivery. Medium, Dark and Extra-Roast Sweet Crude have fallen in late trading today while Mocha Latte No-Foam Skinny-Boy Crude remained steady at $167 per barrel.

In other Wall Street news, Fed chairman Ben Bernanke found himself in an uncomfortable position today, when he announced another ¼ point drop in the Fed’s major interest rate today, only to have reporters point out that the rate was at 3.25% in February and has been cut a total of 8.75 points since. An embarrassed Bernanke admitted that since the rate is used to determine the interest banks charge each other, and no bank is currently “stupid enough” to loan money to another bank, the rate is “at best, a theoretical exercise.”

When pressed to identify the actual status of the rate, Bernanke said, in effect, that since the average person in America has no idea what the heck happens on Wall Street, he simply makes sporadic announcements in the hope that they will somehow stimulate the economy.

Finally, Alan Greenspan appeared before Congress today and admitted that his policies over the past two decades were fatally flawed in ways that he is just now realizing.

“We thought that banks would police themselves when it came to subprime lending practices,” Greenspan said. “We never dreamed they would bow to federal regulations that required them to make bad loans, in bad neighborhoods, to people with no visible means to repay the debts.”

When asked about the wisdom of assuming that people could buy a house with no money down and no regular paycheck, then somehow pay the money back in a timely fashion, he quoted a line from the classic sitcom WKRP in Cincinnati: “As God is my witness — I thought turkeys could fly!”


Comments

1 Comment to “Today’s Economic Forecast”

  1. Steve on November 26th, 2008 9:53 am

    That show is available to watch online here.

Leave a comment!