Two ways to judge the economy of the 21st century

If you're retired, or were near retirement in 2000, as I was, just go back and look at your statements. My pension carrier, State Teachers Retirement of Ohio, in the mid to late 90s was busy throwing money at art and a newly remodeled building with all the latest of everything for its employees. They had so much money they didn't know what to do with it. Then came the tech bust and the party was over by 1999. At least that's what my 403-b statements from TIAA-CREF said. President Bush inherited a floundering economy in 2001--and I don't blame Clinton--there were too many dollars chasing too few opportunities and people were throwing money at any app, widget and dot com business that had a 23 year old in sweats and T running R&D. My funds had fully recovered by December 2003, I think it was, and then soared. Not bad considering 9/11 and all the bad media sob stories about "this economy." Team Kedwards in 2004 really moaned about the terrible economy--worst since the Great Depression Kerry and Edwards said. The day after the election on 2004, the Democrats shut up. But not for long. They drug out the same sad, sad stories from Appalachia and poverty moving to the suburbs for the 2006 elections, and took many seats in Congress. And Republicans let them do it. Here in Ohio our candidate, an African American, was smeared because of Governor Tafts golfing misdeed. Also, he didn't talk and walk white or spread guilt around or write autobiographies about non-accomplishments. Democrats also said we were losing the war, but that's another non-story that worked.

I have another way to judge the economy, both that of the mid-90s and the mid-2000s. My premiere issue magazine collection. Advertising out the wazoo during the days when the media was telling us how awful things were in mid-2000s. Id' seen the same thing in the late 1990s--Wired was so fat you almost couldn't find the stories. Industry Standard, before it went belly up, was just an amazing array of ads. So much advertising, and much of it inappropriate for the readership, that you almost can't imagine what the marketing departments must have been thinking. People in those positions must have thought they had the golden touch, that they couldn't do anything wrong.

I'm getting ready to review the premier issue of Cottage Living, September/October 2004. Here's the ads that appear before page 60.

Woodbridge wine--full page
kitchen appliances 2 full pages, 1/3 mostly white
women's fashion 1 full page each for J. Jill and Talbot
Andersen window 2 full pages
Pergo 2 full pages
Princess Cruises 2 full pages
VISA
ROC
Neiman Marchus
Ford Expedition
Chevy Equanox 2 full pages
Levi Strauss 2 full pages
Citi 2 full pages
Highlander
Jenn-Air 2 full pages
LL Bean
Lowes
Harchow
Bulova
Megerian rugs
Gevalia
WISP (Glade)
Emend (chemo therapy) 2 full pages
Show House (Moen faucets)
Norwegian Cruiseline

Yes, the run up was heady. So much money chasing so few products. Meanwhile, back in DC, every American had a right to a home, whether or not they could make the payments, whether or not their credit rating was awful, whether or not they when it balooned, they couldn't possibly make the payment. Money was being handed out by the fistful from a variety of government agencies to non-profits to make sure enough people got signed on--no down payment? no problema. No job--not to worry. The value of the house was supposed to go up. And so we had a really toxic mix; tainted investments, and the boys minding the store were just watching the boys.

Now we'll have to wait and see if we'll have the Bush-Obama version of Hoover-Roosevelt. Let's hope Obama doesn't give us a 10 year Depression the way FDR did.