Where is the US economy headed?

This video talks about an open season on the bankers!

Do you think that it will come to that?

It would not surprise me if some of the demonstrators at occupation wall street have an open season on some of the cops that roughed them up!

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@spendius,

Spendius are you attending any protest in your neck of the woods?

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@reasoning logic,

There's no way Spendi would march with the Unions mate. He'll be down the pub putting the world to rights.

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@reasoning logic,

Also, be a bit wary of RT, they do like to put a bit of a spin on everything, not as much as Fox though.

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The Dow was down 2.4% today with the broader U.S. markets down by more around 3%. I think I saw that the Dow hit a low for the year. The culprit was once again Greece where it was disclosed that the bailout from the EU was unlikely to be sufficient. Duh?
Bank stocks took a big hit, with Citi, for example, slumping nearly 10%.
American Airlines was down ("took a dive" was the oft repeated line) 33%, with other U.S. carriers following with losses in the 10-15% range. AMR not only is losing money but also is burning through cash at an alarming rate. A rumor going around is that many senior pilots are jumping ship in order to try to lock in pensions prior to the company going into bankruptcy. A spokesman for AMR, apparently with a straight face, that "Bankruptcy is not a preferred option."

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@realjohnboy,

Quote:

The culprit was once again Greece where it was disclosed that the bailout from the EU was unlikely to be sufficient. Duh?

I think not, I think it is the continued assertion that Greece will one day be able to pay their debts if only they can get the right terms.....Greece can not ever pay all of this debt, they have zero chance of being able to generate the revenue, and until we hear European leaders begin to act like they see the same reality that everyone else does no one can have any confidence in the global economic system. Right now it looks like those who run the system are out to lunch.

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@hawkeye10,

The "Duh?" was intended to suggest that you and I agree, as do many people who are smarter and more influential than we are, that Greece will default, certainly before the end of the year if not sooner. There are a lot of people rearranging deck chairs on the Titantic, but default is the likely outcome and banks in Europe and around the world will take a big hit.

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@realjohnboy,

Maybe it's all a trick to buy time. As long as you are all holding forth on these matters you might not be noticing that the creators of wealth are slowly knocking the debts straight. Gold's decline suggests that the lack of confidence is being corrected.

I suppose those who fatten on the wealth would not wish to put the creators of it in too good a light as it might expose them to a comparison.

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@spendius,

Quote:

Gold's decline suggests that the lack of confidence is being corrected.

The gold market is to sucker tea party members and such mainly in the US to transfer more of their wealth to the traders.

When the bubble bust many hundreds of billion dollars is going to disappear like magic from these fools pockets.

Somehow they will end up blaming Obama for their losses.

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@BillRM,

Who else is there to blame. He volunteered enthusiastically enough.

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@spendius,

And we all know he was born in Greece.

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@izzythepush,

Fox news has some good news reporting but I do not know if any of them get shown by Fox!

Does anyone know if fox news has actually broadcasted this one?

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@realjohnboy,

Quote:

American Airlines was down ("took a dive" was the oft repeated line) 33%, with other U.S. carriers following with losses in the 10-15% range. AMR not only is losing money but also is burning through cash at an alarming rate.

I gotta think this would be a political problem, yet another trip through bankruptcy court for an airline as it sheds its debts....these guys (airlines) do that all the time, paying their debts is damn near unusual now. At some point the injustice of the airlines not playing by the rules that the rest of us are supposed to live buy (you borrow money and then you pay it back along the agreed terms) , and the American government allowing it, is going to look like government sponsored corporate welfare.

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@hawkeye10,

This whole story of American Airlines perhaps filing for bankruptcy smell to high heaven as in someone got those stories released just after placing large short sell orders.

As far as I can see there is nothing behind the stories that was not known for some time now.

Hopefully the SEC is doing computers checks on short orders sales of late on that stock.

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@BillRM,

Quote:

This whole story of American Airlines perhaps filing for bankruptcy smell to high heaven as in someone got those stories released just after placing large short sell orders.

IDK as I dont follow them much, but from what I see in a fast look AMR has made money only 7 quarters out of the last 10 years....in capitalism that should not be good enough to stick around. I have long felt that most of the airlines should be liguidated, and that the American government does not posses the intestinal fortitude required to kill off companies that need to die for the good of the nation....

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@hawkeye10,

The good of the nation as in only having one or two airlines and having fares in the thousands of dollars for even couch seats as result?

The last time the airline industry was in the black as a whole the fares given price inflations was that high.

Oh well maybe they would go back to giving you warm meals once more.

Oh we can bail out the banks once more as hundreds of 100 millions dollars plus planes are store in the desert.

Then we have bailing out Boeing.

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@BillRM,

Quote:

Oh we can bail out the banks once more as hundreds of 100 millions dollars plus planes are store in the desert.

Considering that no one wants them I'd say they are worth $0. I further say that if the banks dont value them and $0 then the banks are running fraudulent books.

I have a problem with that.

The runs of the game are the rules of the game. In free market capitalism the rules say that everything is worth what someone will pay for them, and that those firms who dont make money need to die to make room for firms that are able to do it right.

This socialist says that if we are going to claim to run capitalism rules then we damn well better follow the capitalism rules. Claiming one thing and doing another is fraud, and it is morally reprehensible.

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@hawkeye10,

Capitalism is never pure; government programs are socialistic to a great degree, but what and why governments intervene in capitalism is diverse and not clear.

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@cicerone imposter,

cicerone imposter wrote:

Capitalism is never pure; government programs are socialistic to a great degree, but what and why governments intervene in capitalism is diverse and not clear.

The point is the lack of honesty, the lack of transparency...which is inexcusable.

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@hawkeye10,

It might be a hidden subsidy. Business travel needs to be cheap with US distances. Straight subsidies are frowned upon in GATT & Co.

With our governmental sophistication (ahem!) if something is happening you can bet there's a good reason for it even if it is not generally known.

If it is a subsidy and you want to be honest about it then a trade war might start.

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Where is the US economy headed?

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