Anyway, that moniker has stuck. No wonder then that Sean Collins refers to the jobless recovery as Obama bubble. He writes:
unless the underlying conditions for investment are restored, government money is likely just to pump up further the re-emerging bubbles. Even if the Obama administration recognises this trend, it is likely that lacklustre economic growth and high unemployment will render them reluctant to tighten monetary and fiscal conditions too much.Why does he say so? Because:
The unspoken issue at the root of Obama’s dilemma is that the economy’s engine – private non-financial industry - is not investing and innovating. And his response so far is part of the problem, not the solution.
the latest rise in the stock market is more of an indication that the finance bubble is returning rather than a harbinger of broader economic recovery. And rather than blame greedy Wall Street types for starting the party before others have arrived, this reinflated bubble has been made in Washington, DC – led by liberal Democrats in the Obama administration, who many Wall Street critics praise for saving the economy from another Great Depression.