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Where is the US economy headed?

 
 
cicerone imposter
 
  1  
Reply Fri 1 Aug, 2008 12:36 pm
Jobless rate rises to 4-year high of 5.7 percent

By JEANNINE AVERSA, AP Economics Writer 1 hour, 5 minutes ago

WASHINGTON - The nation's unemployment rate climbed to a four-year high of 5.7 percent in July as employers cut 51,000 jobs, dashing the hopes of an influx of young people looking for summer work.
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cicerone imposter
 
  1  
Reply Fri 1 Aug, 2008 01:11 pm
G.M. Loses $15.5 Billion in Quarter


Article Tools Sponsored By
By BILL VLASIC
Published: August 2, 2008

DETROIT ?- The General Motors Corporation reported a stunning second-quarter loss of $15.5 billion on Friday because of a dramatic decline in United States sales and charges for job cuts, plant closings and the falling value of trucks and sport utility vehicles.
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hamburger
 
  1  
Reply Fri 1 Aug, 2008 01:13 pm
c.i. wrote :

Quote:
"... the financial adviser at citi Bank recommended an investment even though I told her my investment needs were "conservative" ...


sorry , c.i. !
i'm sure the financial adviser understood you to mean " i'm a CONSERVATIVE ! ..." and she took her anger out on you !

next time specify " i am a liberal with CONSERVATIVE investment needs " - but who knows how the investment adviser will take those comments ?

sorry , c.i. - i sure don't want to laugh at your expense - it happened to me two years ago - let's cry together !

(an old german saying : "share good fortune with a friend and it will be twice the fortune ; share misery with a friend and it will be half the misery ! " .)
hbg
Laughing Crying or Very sad
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hamburger
 
  1  
Reply Fri 1 Aug, 2008 01:20 pm
IS ARNOLD WRONG ?

Quote:
SACRAMENTO - Gov. Arnold Schwarzenegger made good on his promise Thursday and ordered 20,000 temporary workers laid off and the pay of 200,000 state employees slashed to the federal minimum wage until the state has a budget.

At a morning news conference, Schwarzenegger said California faces a lack of cash as the state budget crisis enters its second month.

"I have a responsibility to make sure our state has enough money to pay its bills," Schwarzenegger said. "This is not an action I take lightly."

The governor also apologized to the laid-off employees, but said he had no other choice.

Area legislators from both parties derided the order as an unnecessary stunt. State Controller John Chiang has stated that he will disregard the governor's order and continue issuing checks at the full rate.

(i wonder if the cheques will be honoured ?)

"The order wasn't necessary," said state Assemblyman Anthony Adams, R-Claremont, whose district includes parts of the San Gabriel Valley. "Making these people suffer isn't going to pass the budget any sooner."




read article in full :
CALIFORNIA
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OGIONIK
 
  1  
Reply Fri 1 Aug, 2008 06:59 pm
food stamps r us.

yay me , im a statistic i read about.
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Ramafuchs
 
  1  
Reply Sat 2 Aug, 2008 01:18 pm
Let me politely appeal all the global citizens who peruse this forum to hel USA's economy to rejuvanate.( Forget about American politics)
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cicerone imposter
 
  1  
Reply Sat 2 Aug, 2008 01:25 pm
The feds took over the eight bank in trouble on Friday (yesterday). It's only the beginning of bank seizures, and no "stimulus" package is going to save us from this economic downturn.
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cicerone imposter
 
  1  
Reply Sat 2 Aug, 2008 03:40 pm
Not all is bleak about our economy. According to a NYT article, the cost of energy and transportation may make imports/exports too expensive to continue on at the current rate of trade. The idea being tossed around is the fact that it may soon be cheaper to produce more products close to home where transportation costs will be much cheaper. Probably not the total picture, but an issue that should be in the forefront of US companies to consider before building that new factory in China or India.
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Ramafuchs
 
  1  
Reply Sat 2 Aug, 2008 03:50 pm
The US government's budget deficit is expected to soar to a record $482 billion in the next fiscal year, the White House budget office has said.

The Office of Management and Budget said on Monday it blamed the "recent economic slowdown" for the record figure.

The budget deficit measures the gap between how much the government spends and what it raises through taxes.

Analysts say the news means the next US president may be urged to work on slashing the deficit instead of adding to it with expensive spending programmes such as those promised by both candidates

http://english.aljazeera.net/news/americas/2008/07/2008728181152828140.html
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hamburger
 
  1  
Reply Sat 2 Aug, 2008 04:26 pm
MSNBC reports (excerpt from a three page report) :

Quote:
Gov. Arnold Schwarzenegger is laying off as many as 22,000 state employees. New York's governor is raising the possibility of selling ?- or more accurately, leasing ?- the Brooklyn Bridge. Nevada is burning through its rainy-day fund like a gambler on a losing streak. And Maryland is pinning its hopes on slot machines.

With the economy in a slide and the housing market in crisis, states are collectively rolling up tens of billions of dollars in budget deficits in one of the worst financial crunches in the U.S. since the 1970s.

The startlingly rapid drop-off in tax revenue is forcing many states to make some hard decisions: Raise taxes? Cut programs and jobs? Dip into reserves? Borrow money? Lease or sell state assets?


what's going on stateside ?
is this really a fullblown economic crisis ?
so far i had assumed that the reports in the NYT and from various TV news were perhaps too pessimistic .
i now read that even the casinos and mega-yacht brokers are reporting a drop in business .
when both the small players - casino gamblers - and the big players - mega-yacht buyers - are starting to cut back , it concerns me a bit .
the assumption had always been that in hard economic times gambling revenues would tend to be stable and even rise - apparently not this time .
perhaps a new/revised economic model is required to better assess the economic problems of the United States ?
hbg

full report :
BUDGET CRISIS ?
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Ramafuchs
 
  1  
Reply Sat 2 Aug, 2008 04:34 pm
The political system, once again, is rewarding failure. The Fed is an unreliable watchdog, ideologically biased and compromised by its conflicting obligations. Is it supposed to discipline the big money players or keep them afloat? Putting the secretive central bank in charge, with its unlimited powers to prop up troubled firms, would further eviscerate democracy, not to mention economic justice.

The nation, meanwhile, is flirting with historic catastrophe. Nobody yet knows how bad it is, but the peril is vastly larger than previous episodes, like the savings and loan bailout of the late 1980s. The dangers are compounded by the fact that the United States is now utterly dependent on foreign creditors--Japan and China lead the list--who have been propping us up with their lending. Thanks to growing trade deficits and debt, foreign portfolio holdings of US long-term debt securities have more than doubled since 1994, from 7.9 percent to 18.8 percent as of June 2007. If these countries get fed up with their losses and pull the plug, the US economy will be a long, long time coming back.

The gravest danger is that the national economy will weaken further and spiral downward into a negative cycle that feeds on itself: as conditions darken, people hunker down and wait for the storm to pass--consumers stop buying, banks stop lending, producing companies cut their workforces. That feeds more defaulted loan losses back into the banking system's balance sheets. This vicious cycle is essentially what led to the Great Depression after the stock market crash of 1929. I offer not a prediction but a warning. The comparison may sound farfetched now, but US policy-makers and politicians are putting us at risk of historic deflationary forces that, once they take hold, are very difficult to reverse.

A more aggressive response from Washington would address the real economy's troubles as seriously as it does Wall Street's. Financial firms have lost capital on a huge scale--more of them will fail or be bought by foreign investors. But Wall Street cannot get well this time if the economy remains stuck in the ditch. Washington needs to revive the "animal spirits" of the nation at large. The $152 billion stimulus package enacted so far is piddling and ought to be three or four times larger. Instead of sending the money to Iraq, we should be spending it here on getting people back to work, building and repairing our tattered infrastructure, investing in worthwhile projects that can help stimulate the economy in rough weather.
http://www.thenation.com/doc/20080818/greider
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cicerone imposter
 
  1  
Reply Sat 2 Aug, 2008 04:38 pm
hbg, There will always be some rich folks feeling the pinch of any economy in similar condition as ours; some were the speculators in property during the boom years when they thought their asset holdings in the millions of dollars would shield them from an economic downturn, they gambled and lost.

Many will be returning their yachts and airplanes, because there's no more cash to be borrowed to pay on their loans.

The higher you are on the food chain with highly leveraged assets, the farther they will fall. Many will be lucky to keep their mansions/homes and MBZs.
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realjohnboy
 
  1  
Reply Sat 2 Aug, 2008 04:49 pm
hamburger wrote:


what's going on stateside ?
is this really a fullblown economic crisis ?

Yes, it is, hamburger. The real wake up call will come this winter, when folks cant afford to heat their homes.
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hamburger
 
  1  
Reply Sat 2 Aug, 2008 05:17 pm
c.i. wrote :

Quote:
hbg, There will always be some rich folks feeling the pinch of any economy in similar condition as ours; some were the speculators in property during the boom years when they thought their asset holdings in the millions of dollars would shield them from an economic downturn, they gambled and lost.


last saturday's NYT reported of the concern that the luxury goods stores near wallstreet have .
one store owner worried that if there are insufficient bonus payments to the brokers/dealers on wallstreet , he'll be stuck with a lot of expemsive baubles at christmas-time !
he said that the weks before christmas are the real moneymaker for his store .
(makes a grown man cry Crying or Very sad )
hbg

ps. i usually "splurge" on saturday by buying the NYT - hope that will help them to continue publishing - really wouldn't want them to go under .
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Ramafuchs
 
  1  
Reply Sat 2 Aug, 2008 06:25 pm
For those who can laugh

"I picked up one of our fine city's newspapers from underneath the wheel of a fruit cart last week and saw a fascinating article about our current economic situation. If I read it right?-and there is a chance I was simply crazed with hunger at the time?-the country is in for some hard times because of a rash of bad loans. Well, I must admit I was flabbergasted by this news. If this is indeed the case, and more people are finding themselves without the means to pay for their housing, then why hasn't there been an uptick in people who, like me, can clothe themselves in naught but pickle barrels?

Have our once-noble homeless abandoned their most sacred tradition so flippantly? Has this great nation lost her teeming, pickle- barreled masses?

I have traveled a long road to get where I am today. At one time I was, like you, a railroad tycoon with a fortune at my fingers. But Fate is fickle, and a series of bad investments caused me to lose everything?-my shiny, chauffeured roadster, my marble-columned mansion, even my fine English suits. All gone. I was destitute, so I did what any responsible citizen in my position would do. I went to the nearest five-and-dime, found a pickle barrel, affixed a pair of leather straps to it, and began my life anew as a wandering vagrant.

To don a pickle barrel was my lot, and by God, I wore it proudly. My barreled brethren and I felt no shame in being homeless. Back then, all we needed to be happy was a pickle barrel to call our own, the occasional discarded cigar butt, and perhaps a handful of dimes we had earned from an afternoon of selling pencils. We may not have had houses or shoes, but at least we knew our place.

But over the years, a disturbing number have abandoned the pickle barrel for the flashier attire of patched trousers with suspenders and shoes that expose their big toes. I am ashamed to say some of my closer companions even stopped growing their wiry beards in perfect ovals around their toothless grins. Yet, hoping they would see the error of their ways, I kept faith and, also, hundreds of discarded pickle barrels I could resell later for a handsome markup.

Then, just last week, I found myself in an unfamiliar part of town with a familiar rumbling in my stomach and began my search for a can of beans I could cook over a boot-fire and eat, before wearing the discarded can as a hat while picking my teeth clean with a perfectly intact fish skeleton. It took a while, as it seems fewer and fewer people these days are carrying crates of tinned food on their bicycles, where even the littlest bump in the road can send a hearty canned stew flying. Also, my barrel does not make it easy to bend over and pick up items from the ground. After much searching, I happened upon a queue forming at a local church. Surely the pious would let me know where I could get my evening's victuals.

Instead, they greeted me with alarming hostility, and I was told that if I was going to make sport of their misfortune, then I had better go elsewhere or suffer a beating. Why, I was bedeviled with confusion. What misfortune could possibly have befallen such well-dressed, church-going gentlemen, clad in the finest of cotton shirts, which bore decorations and slogans like "No Fear," "Super Bowl XXX," and "Boyz II Men"? Why there was not a pickle barrel among them, and yet shockingly they claimed to be homeless themselves!

"Well, rejoice, my wretched companions, for I have pickle barrels enough for all of you!" I exclaimed. "Never again will you be mistaken for decent house owners!" But the crowd perceived my presence before them to be "cutting," and I was at once beaten bloody and thrown to the curb. In the kerfuffle, I fear I lost my barrel's cork, and was forced to flee the place in a highly immodest fashion.

Apparently, these ruffians lost their manners with their homes.

After a restless night in the church basement, I awoke at the crack of dawn and ran down to the train yard to seek the counsel of my old friend Handsome Joe, the Hobo King. He has no subjects, but that doesn't make him any less royal in a soiled tuxedo and a top hat with the lid partially detached. I told him what had transpired, and he agreed that the traditions of the proud homeless must be kept alive. Then he fell asleep with a loud, whistling snore.

I sit here now, surrounded by iron hoops and wood, the last of a dying breed. Perhaps the fault lies not in the individual. Rather, it may lie in a society that values a system in which pickles are stored in glass jars and shipped in cardboard boxes. How is one to clothe oneself with a glass jar? Is one to sleep in a cardboard box?

Perish the thought
http://www.theonion.com/content/opinion/why_am_i_the_only_homeless_man
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cicerone imposter
 
  1  
Reply Sun 3 Aug, 2008 09:57 pm
I knew this was in the works before the NYT confirmed what is not now new news. Middle class families are now going to food banks to feed their families. With their salaries remaining stagnant during a period of increased cost for fuel and food, not many can survive.
***********

Housing Lenders Fear Bigger Wave of Loan Defaults
By VIKAS BAJAJ

Homeowners with good credit are falling behind on their payments in growing numbers, just as the problems with subprime mortgages have begun to level off.
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Thomas
 
  1  
Reply Sun 3 Aug, 2008 10:05 pm
Ramafuchs wrote:
The political system, once again, is rewarding failure. The Fed is an unreliable watchdog, ideologically biased and compromised by its conflicting obligations. Is it supposed to discipline the big money players or keep them afloat? Putting the secretive central bank in charge, with its unlimited powers to prop up troubled firms, would further eviscerate democracy, not to mention economic justice.

The Fed isn't an unreliable watchdog, it's a watchdog prohibited from watching all the relevant markets that need it. The failure of the Fed to regulate quasi-financial instruments outside of traditional banking wasn't caused by its ideology. It was caused by the ideology of the elected politicians who wrote the rules for the Fed -- and by the voters who elected those politicians.

But, as Friedrich Hayeck so eloquently put it: "When the course of civilization takes an unexpected turn -- when, instead of the continuous progress which we have come to expect, we find ourselves threatened by evils associated by us with past ages of barbarism -- we naturally blame anyone but ourselves." I couldn't have said it better myself.
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OGIONIK
 
  1  
Reply Sun 3 Aug, 2008 10:18 pm
somewhere somebody is makin money off aof all this.

follow the profit.


all i can say.


Who is making profit?
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Ramafuchs
 
  1  
Reply Mon 4 Aug, 2008 03:18 pm
This is my view.
Does anbody care about the wotth of toile paper?
Rama
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realjohnboy
 
  1  
Reply Tue 5 Aug, 2008 05:25 pm
Good evening all.
I have been away from this discussion for awhile, so I am still unclear, okie, why the oil companies want rights to more off-shore areas when then already have rights that they have not developed.
Mr McCain wants to give them more and Mr Obama, in a flip-flop, seems to want to give them more. But that resource, oil off the coast, is a decade away.
Mr McCain says we should go nuke. 40 plants, I think I heard him say, But where, and when and where would the waste go. But that solution. if it is a solution, would be decades away.

What p*sses me off is that is that neither of these guys seems to be too concerned about, for example, this winter in New England. It is going to get cold there.
End of rant.
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