Hard Landing - is Here!!!!

Its for the Congress and President Obama to close ranks again. The Congress is on vacation

as the economy crash lands - and the markets have discounted the hoopla over the debt ceiling.

President Obama seems to be candidate Obama again. Its good though that he has responded with a jobs plan and is offering some amount of respite for a volatile and restive stock market that is trying to guess the impact of a genuine slowdown in Europe on this side of the pond.

The eagles hover over Europe and the Asian pastures are becoming increasingly browner. The cattle is starting to disappear. But here, there is a genuine search for direction based on any tactical manoevering that Obama can do. Declines in tech spending, a sharp drop in steel orders, rapid fall in the price of oil, and the leading indicator that is the stock market on tenterhooks, these are real indications that the Hard Landing is finally here and now.

Obama will have to respond with a call to arms to the Democrats in Congress. Come back and start talking even before Labor Day. Come back and put together a package. Obama will have to lead from the front and forget the rat pack that is scurrying around looking to replace him. He has to get Geithner and Summers, Biden and Goolsbee, all the Presidents men, getting in the trenches and digging themselves out of this mess.

Look at the numbers - it a $1.5 trillion deficit - but at $100 billion, one can create a million jobs, just by digging trenches in Federal Lands. The jobs program needs to be quickly laid out to offer a floor on a restive population. clearly bolder measures are called for not just because we are going into an election year but because the battle weary unemployed and underemployed worker is in need of some respite.

But again let us make it clear - the Hard Landing is here!!!!

Its not time to talk - its time to act - Executive Branch - do something!!

C'mon Tim, lets hear it!

C'mon Joe, lets talk stimulus!

Hard Landing now straight ahead unless...

With another set of storm clouds looming and the economy ready to tank and take the asset markets with it,
the Republican congress and the Democratic senate now oweit to the economy to close ranks and find a way to keep the recovery going. The Fed seems to be taking a pause at a dangerous time.
The move downwards in the housing market is clearly a danger as it could mean further bailouts may be required for banks, munis and Fannie and Freddie. It is important for the
President to push for more stimulus possibly through a second ARRA package that is aimed at providing a
backstop to munis. If there are funds left from the first package this is the time to spend it.. A wave of failures now could leave the economy facing fresh problems. Investments in Energy infrastructure and a gradual reduction in a few of the medicare benefits are in order. It is important for the president to send a proposal to Congress that can resolve the present crisis and keep the recovery on track. Postponing the compromise will not work. The same is true for the congress, if they were really concerned about the deficit they should not fight an idealogical fight right now.
Bonyer should understand that giving Newt or Mitt a realistic chance is not his job. If the recovery stalls it is his job that will also be on block.
With the recovery well under way, they could go back to the drawing board. But a hard landing could prove really expensive. Austerity works when the economy is well heated. Presently its important to continue the process of derisking the economy through jobs and improved balance sheets.
Its Triple witching hour, this is the time to pull all the stops - not be the full stop. A weak recovery could come to a roaring halt. OPEC is not cooperating so Congress and the Senate must agree to go forward.