Where is the US economy headed?

after all this infrastructure and all the corporations dissolve or go bankrupt, when money ceases to be as valuable as it was...

like a dead animal, more life will grow from it..

lets hope for the best.

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OGIONIK wrote:

after all this infrastructure and all the corporations dissolve or go bankrupt, when money ceases to be as valuable as it was...

like a dead animal, more life will grow from it..

lets hope for the best.

in these events wealth evaporates without a trace, as if it never existed. It needs to be remembered that we did not recover from the "great depression" until the early 1950's, and that was only because we won ww2 and became the leader of the free world. The question is how do we recover when we owe so many non Americans so much money?

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watched an interview with SATYAJIT DAS this weekend .
he recently wrote the book: "TRADERS , GUNS AND MONEY " .
i'll ask our librarian to put it on the wishlist .
here is a brief overview of the book :

Quote:

Traders, Guns & Money: Knowns and Unknowns in the Dazzling World of Derivatives
by Satyajit Das

Publisher Comments:
Das presents a wry and wickedly comic expos of the culture, games, and pure deceptions played out every day in trading rooms around the world, usually with other people's money.

Book News Annotation:
Through an anecdotal narrative based on his 25 years experience in the world of derivatives trading, the author provides an expose of the "rational madness" of financial derivatives markets. His work simultaneously aims to provide a "wry and entertaining" for people already in banking and finance and to serve as an accessible introduction to financial derivatives. Annotation ©2006 Book News, Inc., Portland, OR (booknews.com)

Synopsis:
Warren Buffet once memorably described derivatives as " financial weapons of mass destruction" . Read this sensational and controversial account" "of the often dazzling business of derivatives trading, and see if you agree.
No money is ever really made in financial markets. Markets merely transfer wealth. As to "how" to make money? Well, it is basically theft, misrepresentation, lies, cheating, deception or force. It is impossible to make the staggering amounts made in derivatives in good years honestly.

"Traders, Guns & Money "is a wry and wickedly comic expose of the culture, games, and pure deceptions played out every day in trading rooms around the world, usually with other people' s money. Whether you move in the financial world yourself, know people who do, or have money invested in stocks, shares or derivatives, this is a fascinating read guaranteed to make you think.

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Hope for the best
and prepare for the worst

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rama wrote :

Quote:

...and prepare for the worst

what do you suggest - do you think selling apples might be profitable ?

http://www.spartacus.schoolnet.co.uk/USAwallst.jpg

Quote:

Fred Bell was a wealthy businessman but was
forced to sell apples after the Wall Street Crash.

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I have no idea sir.
An apple a day drives the Doctor away.

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Does anyone care about the existense
I mean minimal existense.

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realjohnboy wrote:

THE RETAILER'S TALE
Chapter 1

Chapter 2 might be entitled "Death of a Salesman." In the old days, 30 odd years ago when I started out, we bought stuff from the manufacturers. And they had company salesmen who would visit us, often wearing suits or at least coats and ties. This despite them calling on stores like mine where we had trouble keeping our shoes on all day. (warning from A2K admin: Don't believe everything realjohnboy writes).
Things changed and have lately changed dramatically in the supply chain.
Many of our suppliers are facing competition from imports from China or wherever on commodity products like canvas, paper products, brushes, and other items. The company employed salesguys were the 1st to go. It is simply too expensive to keep them, anymore.
And now we we buy most of our stuff through a middleman, called a "distributor." We get a bit of a less discount then if we went direct, but my buyers can go around with their little scanners and can order 3 of something rather than 12. It is called "Just in time inventory"
In addition to eliminating sales reps, the manufacturers get rid of most of their bookkeeping staff. They are selling to just a few distributers, rather then a whole bunch of small accounts, some of whom don't pay on time or don't pay at all.
CHAPTER 3 formulating, if anyone is interested.

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I remember a course I took in college that used differential calculus to determine the best level of inventory. It tried to include all the (variables) direct and indirect cost into purchasing the item.

But, of coarse, in real life, we never know how quickly any one item will sell even though we may have some knowledge about turnovers. In the retail business, you just don't want to carry too much inventory to the point you end up selling it at deep discounts.

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(As a total aside, the two biggies in the distributor business are M (based in San Francisco) and S (out of New Orleans). They are tooth and claw competitors. There are a few other minor players.
When Katrina hit, S was hurt bad, mostly due to employees being unable to get back to work. The owner of M sent an email to his sales people saying that any of them who tried to exploit the situation by spreading rumors of S's fate would be fired immediately. And, in fact, M quietly filled some orders for S without anyone knowing. The owner of M said something to the effect of "it could happen to us.")

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Is that the best S&M story you can come up with? :wink:

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Poor innocent pathetic victims of Katarina are still struggling.
Seeking soup to survive.
This is the noise of American

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Serious topic.

Georgia asks for backup, and Russia accuses the Bush administration of supporting Saakashvili. The White House risks a foreign policy debacle. The presidential candidates Obama and McCain try, meanwhile, to clarify their positions on the conflict.

The war in Georgia began at the worst imaginable time: U.S. President George W. Bush was just urging American athletes to victory in Peking and Secretary of State Condoleezza Rice was still enjoying her summer vacation when Georgian Ambassador Vasil Sikharulidze begged the United States to, "prevent a great humanitarian disaster and the take-over of a sovereign state."

In the days following escalation of the conflict, helplessness reigned.

Although President Bush called Russia's reaction to the Georgian advances "disproportional" and "unacceptable," his words had no apparent effect on either his own countrymen or the Russian government.

http://watchingamerica.com/News/3790/america-in-no-man%e2%80%99s-land/

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Historically, the social stigma of bankruptcy and the cost (economic and psychological) of a move have dissuaded families that have found themselves with a negative net value of their house from leaving. Foreclosures occurred only when the burden of interests became unsustainable.

Today, however, the situation is different. On one hand, the strong decline in real estate values increases the temptation to declare bankruptcy. On the other hand, the problem is so widespread that such a decision could become socially acceptable, amplifying the phenomenon. To avoid such an occurrence, an intervention of the government that reduces incentives to abandon loans and houses would be useful. In theory this objective can be achieved in two ways. The banks can be incentivized to reduce the amounts of their loans. Or declarations of bankruptcy can be made costlier. In an election year, however, only the first road is plausible, because the second would be extremely unpopular. But time is pressing.
Tomorrow could be too late

http://watchingamerica.com/News/3737/the-united-states-crisis-at-the-crossroads/

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More help needed for US economy
Published: August 10 2008 19:26 | Last updated: August 10 2008 19:26

Even if the US economy is not quite yet in a technical recession, it shows no sign of reviving. Unemployment is rising and other indicators underline the risk of a prolonged stagnation. Policymakers must be mindful of Japan's experience. The danger that the US economy might settle into a similar pattern of slow self-destruction should be concentrating minds.

Viable policy options remain, though none is as straightforward as one would wish. Even with interest rates at 2 per cent, monetary policy can be loosened further if need be. The Federal Reserve is rightly keeping its eye on core inflation and is especially watchful for signs that expectations of faster-rising prices are starting to drive wages. For the moment, no such incipient wage-price spiral is apparent. Even with interest rates already negative in real terms, some freedom of manoeuvre remains, and is the first line of defence.

http://www.ft.com/cms/s/0/a2e8ed9a-6705-11dd-808f-0000779fd18c.html?nclick_check=1

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What's so amazing about the US economy is that nobody is calling it a recession yet. People are deaf and dumb - and blind too! They can't see the devastation of our economy even when we live in the middle of this crisis.

I don't give Americans too much hope for intelligence when:
a) unemployment continues to climb
b) retail sales is dropping in all sectors
c) millions of families are losing their homes
d) millions of workers are losing their jobs
e) banks are going belly-up
f) auto sales are dropping for all makers
g) credit has dried up
h) our government continues to increase the national debt
i) the value of the US dollar is at its lowest point in history
j) job creation is now worse than during Hoovers time (during the depression)
k) millions are losing their health insurance
l) the cost of health care continues to increase

Maybe when we are in a real depression, people will admit it's a recession.

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C I
you can air your critical views about the plight of USA economy .

The fact is the poor innocent Americans are divided and not united.

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Ramafuchs wrote:

C I
you can air your critical views about the plight of USA economy .

The fact is the poor innocent Americans are divided and not united.

That goes without saying; even about their own "security." Some people still fear al Qaeda more; go figure.

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Yes I know
Under the regime of BUSH and his compassionate clan
muslime criminal acts are highlighted.

But the poor innocent Americans are still struggling to exist.
I cannot type more because of teaers.

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if this is not a winner , nothing is ! Crying or Very sad

Quote:

Budget Deficit soars to $102.8 Billion in July

By MARTIN CRUTSINGER
The Associated Press
Tuesday, August 12, 2008; 2:05 PM

WASHINGTON -- The government says the federal budget deficit soared in July, pushed higher by economic stimulus payments and $15 billion in outlays to protect depositors at failed banks.

The Treasury Department reported Tuesday that the deficit for July totaled $102.8 billion, nearly triple the $36.4 billion deficit recorded in July 2007.

The deficit beats the $97 billion gap that Wall Street economists had been expecting for July.

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Where is the US economy headed?

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