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Europe’s Looming Financial Crisis

Isolated German Chancellor Dr Angela Merkel - click image to read more from Fate of Euro at Stake in Top-Level Meetings, Sydney Morning Herald

Important, watershed events are unfolding in Europe and the United States media is obsessing about whether or not Mitt Romney was an asshole in high school fifty years ago. The combination of economic and political events that are shaking Europe include the rejection of austerity politicians in France, Germany and Greece, the emergence of political extremists as viable candidates, and new questions about the ability of the European Community to remain intact. This is no longer a question of economic fundamentals. Rather we are now facing a full blown crisis of confidence.

The critical event was the vote that took place yesterday (Sunday) in Germany:

[where the party of Angela Merkel] suffered a crushing defeat on Sunday in an election in Germany’s most populous state, a result which could embolden the left opposition to step up its criticism of her European austerity policies.

The election in North Rhine-Westphalia (NRW), a western German state with a bigger population than the Netherlands and an economy the size of Turkey, was held 18 months before a national election in which Merkel is expected to fight for a third term. (Reuters)

So why should you care?

Up to this point Chancellor Merkel has been the bulwark in Europe against the forces of irresponsible economic policies. She has been insisting that other countries get their houses in order and refused to commit Germany to paying off the debts of others. Her steadfast position played an important role in reassuring international creditors and buying time for the Euro.

Despite doubts about the political will of leaders in Greece, Italy, Spain and Portugal, Merkel was (and is) seen as an anchor that would keep the European Union from drifting into the economic shoals of unrestrained spending and mounting deficits.

Now Merkel’s political future and her commitment to holding firm on austerity measures will be in question.

This does not mean that she will cave or alter her policy position. But, the election in Germany now puts the question of “confidence” back on the table. Until Sunday’s vote there was the assumption among most economic observers that Europe would somehow muddle thru and the Euro would remain intact. Merkel’s political setback now has the potential to change all of that and the change will not be positive for the world economic outlook.

Greece is a trainwreck. There is no other way to slice it. Greece is now firmly on the road to abandoning the Euro and embracing political extremism. The odds are slim and growing slimmer that the Greeks will opt for a middle of the road, fiscally-responsible solution to their debt crisis. Instead, it is highly likely that they will stiff all of their creditors and will return to the drachma. While others in Europe will try to prevent this, the political realities inside Greece make sticking with the Euro increasingly unlikely. Merkel’s political rebuff in Germany, ironically, is likely to resonate in Greece and fuel those pressing to walk away from Greece’s prior commitments to pay creditors something.

What does this mean for the United States and its economy? A crisis of confidence in the international markets is likely to send more panicked investors seeking safe haven our way. But that kind of demand could have an inflationary pressure on our economy, which is the last thing we need in the midst of a failing recovery.

The turmoil in Europe will last through the summer and will roil the international currency and financial markets. The ramifications extend beyond Europe and will adversely affect Asia. When Asia catches an economic flu, you can be certain that the infection will make its way to our shores.

I wish I had better news for you, but it is what it is.

  • Denise Betters

    Merkel has already agreed that an amendment regarding austerity is acceptable.  Once more your paltrypunditryplops

  • alicewolf

    Maybe it’s more like bad news for the banksters.   How could it be worse for the average US citizen.   The recovery that wasn’t and the jobs program that isn’t and the home foreclosure plan that couldn’t help people and the deals that the Obama Administration has made with Big Pharma and the DA’s investigating MERS etc, could not be any less helpful than a clubbing on the head with a baseball bat.
    The EU is fronting for the banksters, and the situation with JPMOrgan is making waves that will lead to more deals like the Bear Stearns deal or even a Lehmann Bros repeat performance.
    Should Congress decide to reinstate Glass Steagall, and go ahead and open a New Federal National Bank, through which to issue credit for huge infrastructure projects like NAWAPA, that will put million of US citizens back to work for at least two generations’ time, then the principles and mandates contained in the US Constitution will do what they were intended to do, to uphold the general welfare.
    Neither Obama or Romney are advocating such an economic policy.
    Their promises for whatever the future they envision is, are strangely lacking in substance.   Neither of them are offering a solution to the crisis that we are facing.  Another war, or wars, with Syria, Iran, Russia or China is very enticing as a future prospect for the US citizens who are exhausted by the results of the perpetual wars being waged on their behalf, which are spiced up from time to time with news of an assassination of someone,  Saddam Hussein, the fall of Mubarack, the murder of Qadaffi and the proposed action against Assad and the invasion of Iran, have done very little to bolster up the confidence of US citizens, and for young men and women who have joined the armed forces, the casualty numbers as well as the numbers of those  who have been maimed, plus the confusion that is being caused by killing so many women and children with drone attacks, are alarming at best and disgusting at worst.
    Pride in the United States is at an all time low, the newly “gayed out” President together with the same sex marriage agenda and the legal presence of gays and lesbians in the military has not made the average citizen joyful, and it certainly has not helped with the problems everyone is facing to pay their rent and utility bills each month.
    The prospect of Hillary Clinton coming out of the closet as well as the rainbow halo on Barack Obama is something that most baby boomers were not waiting for with bated breath.
    We are concerned with the lack of Christian values, we are concerned with the way the future looks for our children and grandchildren.
    The way the banks have been given preferential treatment over and above the needs of the citizenry is way more discouraging than the news that same sex couples are telling us that they are likely to have “open” marriages.   Really and truly, when was it of vital importance for everyone to be privy to everyone’s private life.   When was it vital for it to be called “hate” when expressing a basic Christian value or principle.   Now we are being forced to consider these topics as if they were vital to our existential future.    We are far more endangered by the prospect of thermo nuclear war with Russia and China that we ever were by allowing an Islamic Community Center to be build in the center of NYC.   God is in control, he always was, he still is, and always will be.   Everything you need to know about God and his character is to be found in the Holy Bible.  You may choose to disagree with what his character demonstrates but there it is, the God of Abraham, Isaac and Jacob, is the God of the New and the Old Testament, and unless you take time to become familiar with the Scriptures, then you may find that you will find yourself in the position of the five virgins who didn’t bother to trim their lamps, and found themselves wanting oil when the Bridegroom arrived.     It’s up to each person to work out their own salvation with fear and trembling………………….so work it outfor yourself, like the Bible says.  It is written.

  • Popsmoke

    Talk about the Greeks and austerity…  http://www.washingtonpost.com/business/economy/taxmageddon-sparks-rising-anxiety/2012/05/14/gIQAUxAAQU_story.html?wpisrc=nl_politics

    We are just as bad…. Now Boehner going to go and blow smoke about this shit?

    Dear Mr. Speaker,

    Thank you for your remarks today. I found them very insightful and extremely interesting. But I would like to remind you of one small fact you overlooked.

    Rather than come to grips with the real issues. You took the political route and kicked this to a super committee and helped pass  this shit into legislation.

    Now your bitching about it?

    Your House now wants to subvert the the legislation you pushed and passed to protect its own special interest, the defense contractors, while cutting domestic programs and only discretionary spending?

    Its this simple Mr. Speaker. We all need to bite the bullet across the board in cuts and increases fairly. Until you and your colleagues get this picture, I recommend you all stay the hell home and save us some money and more heartaches.

    This includes the other side of your isle.

    Respectfully
    Poppingsmoke

    • EllenD818

       I like it Pop.
      Don’t know if you meant to portray Congress as an island but that works too.

  • Deapster

    Instructional to see how California is coping:

    From Jerry Brown’s latest state budget comes the startling admission: 

    “A year ago, the state faced an immediate $26.6 billion budget shortfall and future estimated annual gaps of $20 billion. The state’s fiscal challenges were exacerbated by an unprecedented level of debts, deferrals, and budgetary obligations accumulated over the prior decade.”

    Debt — Deferrals – Accumulated Budgetary Obligations. Sounds like someone misused Daddy’s credit card.

     And for this admitted mismanagement, Brown now wants Calif taxpayers to fork over more money so he can do more of the same. 

    Anything here Europe can learn from California? Guess not, because the Euro-zone can’t tax its way out of its stupid moves. California can. But at least California can’t print its own money.

  • Deapster

    Cut classes. Cut programs. Cut summer school. But do NOT cut teacher salaries is the voice of California education. Dare mention it and you get cut yourself. CTA (California Teachers Association) the union taking California on its current death spiral. And did we mention California now ranks 49th in educational quality? 

    This is what happens when you let term limits and special interests take over your state legislature.

    Add closed shop and forcibly taking union dues from state paychecks and passing them directly to the unions themselves.

    Unions giddy with their locked-in new found wealth and have been happily buying every legislator they can find — and they are easy to both find and buy because the California voter having been educated in California schools is as stupid as they come.

    There you have it, folks.

  • Deapster

    Not clear is Greece is a model for California; or is California a model for Greece. No matter — both are on the skids.

  • Deapster

    The Euro has just been a temporary experiment. It didn’t work. Nor can an economically tied Europe exist when there are the current language and culture barriers. Germans work. PIIGS do not. Den Hague gets slaughtered.

  • TeakWoodKite

    From the Hill. Wave good bye to them…..

    All told, 409,300 long-term unemployed Americans in 27 states will have lost upward of 20 weeks of federal unemployment benefits by this past Saturday, even as the many state jobless rates remain high, according to a new analysis by the National Employment Law Project (NELP).

    The latest batch of cuts affects 236,300 unemployed people in eight states — California (11%), Texas (7%) Pennsylvania (7.5%), Florida (9%), Illinois (8.8%) North Carolina (9.7%) Colorado (7.8%) and Connecticut (7.7%) — half of which have jobless rates above the 8.1 percent national average posted in April.

  • http://pulse.yahoo.com/_W6RLFUOLWP23SJ5RQHENEPHKME David L

    I don’t care if romney was and asshole 50 yrs ago,. Obama is an asshole, yesterday , today, and tomorrow !!!! 

  • HARP2

     NYT/CBS poll: Romney 46, Obama 43

    The weighted sample of registered voters: 36D/30R/34I, which is right in line with most national polls.

    While 25 percent say the president’s support for same-sex
    marriage makes them less likely to support his reelection, 16 percent
    say his position makes them more likely to support him. Fifty-eight
    percent say the announcement will not affect how they vote…
    Asked if they had to decide if same-sex marriage should be legal, 51
    percent said no, including 81 percent of Republicans, 25 percent of
    Democrats and 54 percent of independents. Forty-two percent said yes,
    including 13 percent of Republicans, 63 percent of Democrats and 43
    percent of independents.http://hotair.com/archives/2012/05/14/nytcbs-poll-romney-46-obama-43/#comments

    • KenoshaMarge

      A preponderance of those polled also said that they saw Obama’s move as a political one. Seems as if the public is starting to see though the phony Hopey-Doper.

      • Flop_Flipper

        What I don’t get is what Obama thinks he is accomplishing. Most rational adults recognize this as a distraction. I don’t care one way or the other about gay marriage. I mean, go for it. Whatever. Welcome to gay divorce. You’ll love it.

        I find it amusing that Santorum is nipping at Mitt’s heels to make this a defining issue. If Rick and Rickettes Michele Bachmann and Michelle Malkin want to take on Obama, he’s so gay, then so be it. I’ll watch from the sidelines and snicker. At everyone.

  • doc99

    Greece rumored to be the next turnaround project for Bain Capital.

  • LindaAnselmi

    Glad you wrote about this Larry! Sad but important post.

    I wish everyone didn’t just mention the austerity measures as the reason for the backlash in Europe, much of it is also being fueled by the bailouts to financial institutions  (as it is here).

    While unjustified confidence was the glue that held this world wide financial bubble together, it could never be enough to sustain it long term.  This bubble is doomed to pop.  Unfortunately we have done nothing to prepare people for it.  Or prevent the next bubble from building.

  • HELENK2

    Bloomberg News

    @BloombergNews

    BREAKING: Moody’s downgrades 26 Italian banks; Outlooks remain negative | http://bloomberg.com
     

  • EllenD818

    Surely the European banks have gotten together to work out a “Plan B” if they have to bring the currencies back. I know Bank of Scotland was working on it.
    I understood the appeal of a European Union for trade but a single currency never made much sense to me.

    We have NAFTA with Canada and Mexico.
    Anyone for sharing a common currency?
    What about you, Canada?
    Canada?
    Canada?
    Bueller?

    • sd78

      The Bank of Scotland, in the UK, never joined the Euro. Several other countries also refused. The Euro was a stupid idea and those who opposed it foretold what would happen. Germany is/was determined to rule the whole continent one way or another.

      Angela Merkel may not want Germany to bail out Greece, Spain, etc. but she has no qualms about demanding that the countries that did not join the Euro and have nothing to do with its downfall give huge amounts of money. 

      • EllenD818

        Thanks, sd78. Yes, Britain never joined the currency but I think the RBC is running projections on how the disintegration of the Euro would affect their investments in the rest of Europe. I’d be interested in seeing an analysis of a breakup.

        Absolutely right – it was a stupid idea and many in Europe who have long memories saw it as a  bid for Germany to rule the continent, just as you say.

        And speaking of long memories, remember when there used to be cheap European counties for tourists to visit like Greece? I don’t think it would be so bad to have different currencies again.

  • HELENK2

    http://thehill.com/blogs/global-affairs/trade/227201-white-house-confirms-president-will-skip-asia-pacific-summit-in-russia

    backtrack to skip asia-pacific summit in Russia.
    tit for tat over Putin or too busy trying to get re elected????

  • HELENK2
  • HELENK2

    off topic

    http://www.politico.com/blogs/burns-haberman/2012/05/paul-wont-campaign-in-new-states-123385.html#comments

    Ron Paul will not campaign in states that have not yet voted.
    money problems???????

    • HELENK2

       http://pjmedia.com/vodkapundit/2012/05/14/nah-nah-nah-nah-nah-nah-nah-nah-hey-hey-hey-goodbye-8/

    • Hokma

      I believe Ron Paul deserves a prime time speech during the convention focused on the core issue of economics. Santorum and Gingrich should be given non-primetime slots or let them speak at the DNC convention since what they said and did only helps Obama.

  • jrterrier

    Was the rejection of Merkel’s party by Germans a vote against austerity or a vote against having Germany bail out the other nations?

    • DianaLC

      I read the story in the paper today to mean that it was for a more “socialist” party.

  • Anthony_1

    Excellent post, and excellent link to the article.

    I was struck by what appears to be something hopeful:

    “Polls in the Netherlands for the first time showed the hard left, anti-European Socialist Party as the strongest single party before elections in September.But Dr Merkel is unlikely to abandon her tough line on a new fiscal pact for the eurozone.”

    I sure hope she sticks to her guns and continues to keep a grip on the economy.  Merkel is seeming more and more like the only adult on the whole of Europe.  

    Seems like the “hard left anti-European (or anti-American – take your pick) Socialist Party is doing their best to get in line with their hands out. No wonder so many Obots celebrated when Hollande won the election in France.

    • Hokma

      The more control a government has over the economy the greater the likelihood of social failure. The people in most European countries grew up only experiencing govnerment controlled economies. It is understandable that after decades and decades they would be upset with austerity. Under these conditions you generally see a rise first in nationalism which could then turn to socialism or fascism unless the economy is fixed.

      Since World War II the United States was the economic leader in the world until 2009. Our failing has had a lot to so with how serious the situation in Europe is today.

      • Anthony_1

        “Since World War II the United States was the economic leader in the world until 2009. Our failing has had a lot to so with how serious the situation in Europe is today.”

        Bingo.    Do you think Merkel will be able to continue standing her ground ?

        • Hokma

          Merkel is incredible and her leadership and strength exceeds even Thatcher given what is in the balance. She has less and less allies around her and Obama is not one of them.

          Until Romney is elected, Merkel and Germany will have to stand alone as the stalwart of free market capitalism.

          • Anthony_1

            Its a pity she’s not dealing with a President Hillary Clinton.  Somehow, her grit (Merkel’s) indicates she’s not going to fold any time soon.

            Thanks for this exchange. There’s a lot that I don’t know about, European economics being one of them, and this really helps

  • HELENK2
  • http://profile.yahoo.com/BDYXXMV44GTCHXAEWFLKI6UELQ Ryan

    I find it hilarious that Mr. Johnson tried to get in a plug for Romney in a post about Europe collapsing under forced austerity, the very prospect America faces if he is elected. If we can’t even learn from the PRESENT wer deserve to have no future.

    • http://noquarterusa.net Larry Johnson

       Unlike Obama, Romney does understand economics and is willing to take the necessary measures to get us growing again.

      • lola828

        Romney only understands being a vulture in private equity. There is only one type of economics in private equity and that is the economics of the partners. Many studies have shown that private equity has not really benefited this country and actually has provided very little long term returns for even its investors.

        If Romney is so good with the economy and job creation then why was he ranked 47 out of 50 in job creation when he was Governor? Also, why did he not run for re-election and countinue with is superb job of managing the Massachusetts economy?

        Obama has done a very good job at turning this economy around and cleaning up the mess after 8 years of GOP economics.

        • Retired_from_SPOnaj

          Larry, apparently Lola got the memo about using the word “vulture” to describe Romney.  You were worried about him/her being left off of Axelrod’s email distribution.

          • Deapster

            Romney is a soaring eagle. Obama is a lame duck.

          • lola828

            A spade is a spade. That is what private equity is all about. You should read up on private equity and the LBO business.

            Rick Perry and Newt Gingrich themselves pointed this out.

      • JJ_the_PUMA

        I’m not so sure that Obama does not understand economics.  I just think that for him the size of the pie is not nearly as important as how the pie is distributed.  

        • Retired_from_SPOnaj

          Sounds like the Ft. Benning enlisted mess at jump school in 1972.  One twelve inch pie for 200 men.  But it was divided “equally,” at least for the first eight men through the line.

          • JJ_the_PUMA

            Small world.  I was in training at Benning the first half of ’72.  Tried out for jump school, but could not do the minimum number of pull-ups…..WIMP.  

      • Popsmoke

        What about his party? Are they on the same playing field?

        Seems like they just proposed a 4.3% increase to the defense budget since 2010 to $395.6 billion. While sending a bill to the senate cutting $310 billion from the deficit over the next decade.

        Oh yeah they cut food stamps, children’s health care, funds to hospitals that serve the poor, and Medicaid all in order to shield the Pentagon from future cuts.  They actually added $8 Billion to the puzzle palaces budget.

        http://www.nytimes.com/2012/05/11/us/house-approves-310-billion-in-cuts.html?_r=1&utm_source=TomDispatch&utm_campaign=fe30df0463-TD_Astore5_15_2012&utm_medium=email

        I am sure Romney agrees with all of this… Right?

        “Mitt Romney, the presumptive Republican presidential nominee, stopped short of endorsing the bill, but thrust it into the campaign debate”

        WTF? And I don’t mean Western Task Force….

        • Anthony_1

          We must stop the evil Mittens before it’s too late!

          Geez….. is there nothing that doesn’t lead to a Romney pejorative?  At least wait until he’s POTUS for god’s sake

  • lola828

    It is about time Europe rejected austerity.  They are starting to wake-up. That is not the answer. It just creates a death spiral.
     
    Lets not over-react here. The vast majority of Europe is not in any trouble whatsoever with economies that remain strong. Greece is less than 2% of EU GDP. 
     
    It is also very debatable about how much Europe will impact any continuing recovery in the U.S. We are not really all that reliant on Europe for our growth and recent economic data in the U.S. continues to be very good. Consumer confidence, housing data and retail sales numbers have all come in very good in the last week, suggesting the economic recovery is broadening. Last week it was reported that U.S. consumer confidence jumped to a 4 year high and that is with elevated gasoline prices. Boy that sounds like we are moving to a big downturn in the economy as Larry seems to think.
     
    http://www.bloomberg.com/news/2012-05-11/consumer-sentiment-in-u-s-climbed-in-may-to-four-year-high.html
     
    Consumer confidence is a leading indicator and employment is a lagging indicator.
     
    You guys want to blame Obama for the high price of gasoline, so now that it is falling you can give him credit for the falling price of gasoline.

    • Anthony_1

      Falling price of gasoline? Sure, maybe in some of the swing states, but certainly not here in the North East. Or any other “true blue” state.

      Do your best to get back on your rocker.  I think you might have fallen off.

      • Retired_from_SPOnaj

        They’re just making it up now.  It goes along with removing millions from the workforce and continuously “revising up” unemployment figures.  They believe that the American people are idiots and don’t notice that they and their neighbors are out of work.

        As far as gas prices are concerned, they certainly aren’t going down out here in California.

        • http://profile.yahoo.com/BDYXXMV44GTCHXAEWFLKI6UELQ Ryan

          Yes, the west coast has issues due to refinery shortages. Gas prices are falling everywhere else in the nation. You can’t change facts.

          • Retired_from_SPOnaj

            They don’t seem to be falling in Washington, DC, Virginia or Florida, either.  How does that fit in with your theory about “refinery shortages?”

          • lola828

            Yes they can change facts. They do it all the time. Or they just ignore them.

          • Flop_Flipper

            The fact is that you are an Obot idiot. And I am being kind. Ask anyone.

            Gas prices will rise but Obama won’t have anything to do with it. He is only responsible when prices fall.

        • Anthony_1

          Same here in Manhattan, Retired_from_SPOnaj.  If anything, they’ve gone up.  

          Maybe we’re paying more in true blue states to keep the Obama supporters in swing states “believing” in their Savior? 

          • DianaLC

            I’m in a swing state and have been “enjoying” the relatively lower prices for a while.  But I’ve put the word in quotation marks to let you know that I am indeed not enjoying them.  For this cheap (ooops! frugal) person, it doesn’t feel that my gas prices are low at all.  I do all I can NOT to drive if I can help it.  The prices, despite the fact that they are lower than in other places, are by no means low.

            And, yes, we just found out that our neighbor’s wife has been rooming it with other nurses out of state for a while, as she was laid off her and couldn’g get a job anywhere (a NURSE, mind you) but out of state, while the neighbor is himself down to part time, and his daughter has moved home to care for their dogs and and to cut her own expenses. 

            Every week it’s a new story to contradict the lying obots who don’t believe we should listen to our lying ears or believe our lying eyes about the state of the economy. 

            Many, many parents are too blame in this country for allowing these little oboties to believe money indeed does grow on trees.

          • MG6

            Same here in Corrupted Massachusetts…nothing has gone down except the unemployment numbers.  It appears thousands have been removed from the unemployment rolls because of all the jobs out there.
            Hmm and those thousands are applying for early retirement, welfare, food stamps and disability.

        • shelldoll2

          Gas prices aren’t going down in Georgia either.

        • TeakWoodKite

          Our gas bill went from 100.00 a month to 250.00 and we rarely leave town.

          Never mind that CA just “doubled” the debt. from 9 to 16 billion.

        • Popsmoke

           Man you guys on the West Coast are really getting “west” accosted… http://gasbuddy.com/gb_gastemperaturemap.aspx

          • TeakWoodKite

            So many windmills… It has always seemed odd that in a state that produces one third of the nations food that gas prices would be the highest in the nation….one way to turn around the economy is to make lettuce cheaper, since California grows 75% of the market….

      • EllenD818

        Not falling here in SoCal. As soon as they announce the price of a barrel falling, gasoline prices rise.

      • lola828

        Gasoline prices are down significantly from a year ago and down from where it was a few months ago.
         
        Not sure what your source is on gasoline prices, but here is my source:
         
        http://www.eia.gov/petroleum/gasdiesel/
         
        Obama has done a good job at moving the price of gasoline down. The expectation is that gasoline prices will continue to fall, so lets give Obama lots credit for bringing it down… only fair. You want to blame him on the way up, so lets blame him on the way down.

        And now when things turnaround all you guys are hilarious in your denying of reality.

        • Retired_from_SPOnaj

          My “source” is having to buy gas a couple of times a week.  That’s the same “source” that I use for Washington, DC, Virginia and Florida.  I’m finding the reliability of “.gov” sources to be questionable.  In the case of unemployment, the initial figures are constantly being adjusted upward a couple of weeks or months after they are initially announced.  Only very rarely are they adjusted downward.  But the media almost never report on the adjustments.

          • TeakWoodKite

            They, the MSM proudly give glowing reports about the wrench that was used… zircon tweezers are often mistaken for the vice grips of kool-aid euphoria.

          • EllenD818

            “Who are you going to believe -me or your lying eyes? “

          • lola828

            Is it normal for you ex-”intelligence” guys to believe in conspiracies? So now you do not trust government statisitics on gasoline prices?

            You are now stretching it.

            How about you check the latest inflation numbers and see how the decline on gasoline prices has pushed down inflation recently?

            I guess you will not believe those numbers either.

            I can’t believe you guys were “intelligence” officiers. That is a joke. I guess things were simplier when you were fighting the commies…

            You cannot admit the numbers are getting better, so you then discount the numbers. Typical. You live in an alternative reality.

            • Retired_from_SPOnaj

              Nice attempt at an indirect ad hominem attack to divert attention from your inability to explain why gas prices have not gone down here and elsewhere, but it didn’t work. Gas prices are still up today.

        • Hokma

          Gas prices are down “significantly?” Are you completely out of your mind?

          When BO took office the average gas prices were under about $1.80 nationally. So calling gas prices going down from $4.00 to $3.95 is not something to be bragging about moron.

          “so lets give Obama lots credit for bringing it down”

          Are you a comedian by trade or just pathetic? First you claim that the accelerating prices were something that the President was not responsible for and could do nothing about. So when they finally go down a inch you want to heap praise on him. So which is it? You’re pathetic.

          • lola828

            Gas prices are down 20 cents and continue to fall… the direction has clearly changed.

            $1.80 was at the depth of a deep deep recession. big deal.

            The average price of gas over the last 10 years has been about $2.70.

            I don’t think you get the joke. Went right over your head like most things.

            Obviously, the price of gasoline is not determined by the President. It is determined by the price of oil which is determined in world markets.

            However, if you conservatives want to blame Obama for the price going up then you should also give him credit for the price of gasoline going down. Your logic not mine. 

        • EllenD818

          “Not sure what your source is on gasoline prices, ”

          How about the gas stations around me? It has gone up 15 cents a gallon in the past two weeks where I live.

          • lola828

            Is that Obama’s fault that your local gas station raised prices?

            The national average is down.

          • EllenD818

             lola (beneath me) I said gas staionS (plural).
            I did not apportion blame in my comment, my point is that you cannot say gas prices are falling when in some areas they are rising.

      • beachnan

         Thanks Anthony.  Exactly what I was thinking.  I live in California, along the central coast-$4.29 a gallon for regular.  Going down?  Sure.

      • ObamaDubya2ElectricBoogaloo

         In the Bay Area the prices just spiked 15-20 cents everywhere. If I get gas for $4.30/gallon now I think I’m getting a good deal :-/

        CA sucks.

    • TeakWoodKite

      What falling gas prices? 4.31 a gallon is falling?

    • wylrae

      I might be inclined to give 0zer0 credit for falling gas prices if and when they reach the neighborhool of 2.25 to 2.50 a gallon.  But I would have to think long and hard about actually giving him any credit in that area.  After all spokesmen (I know PC should be spokespersons) for his administration said a few weeks ago that there was nothing the president could do to  bring gas prices down and as I am somewhat inclined to believe them (that 0zer0 couldn’t bring gas prices down) I would find it difficult to give 0zer0 credit for something he obviously couldn’t do. 

      • KenoshaMarge

        I find it hard to take the now he’s responsible now he isn’t  rhetoric seriously. Period. I certainly wouldn’t take anything posted by a POS troll seriously enough to bother with.

  • Retired_from_SPOnaj

    Hey, screw the economic shit.  The MSM is reporting that the Mittster’s dad may have been associated with a polygamous sect.  At least Obama’s dad was…oh, never mind. 

    • Anthony_1

      and Obama ate a dog (but didn’t swallow)

    • lola828

      You are right we should focus on Romney’s economic shit because it is shit. He has no plan other than going back to Bush economic policies on steriods.

      Question for you: What is Romney’s economic plan?