Where is the US economy headed?

@hawkeye10,

Quote:

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.

In the history of the world there had never been free market capitalism and surely not in the US!!!!!!!!!

Governments always been involved not only setting the rules but picking winners and losers in the game.

Hell no one in his or her right mind would desire free market capitalism which would end in slavery for the bulk of the population just as fast and just as firmly as communism.

In the case of airlines it would end up with one or two airlines who would work together, openly or otherwise, to set up the pricing at a break point that few could afford.

The sheer capital costs of the planes and other infrastructures to get into the game would limited it to a few airlines and allow them not to serve the mass of the population but only the rich while earnings as must profit as possible.

The costs/demands/profit curve solution for max profit in this case would be on the very extreme high side.

1 Reply

@hawkeye10,

I also agree that government(s) work in secrecy tothe extent they can continue to get away with, and that includes all levels of government.

0 Replies

@BillRM,

Quote:

In the case of airlines it would end up with one or two airlines who would work together, openly or otherwise, to set up the pricing at a break point that few could afford.

But Bill--that would be no good for the monopoly carrier. If few could afford it then the carrier would have few customers. That's the famed "hidden hand" at work behind the scenes. It's in the wings really where those sitting front/side can see it. Not right behind the scenes, backstage passes and all that, where it does it's more intricate manoeuvres. I don't know much about that. It's guesswork and you need to be an evolutionist to guess properly. And a psychologist. I'm a clown. Setanta insists on that.

0 Replies

AMR stock recovered about half of what was lost yesterday. But we are talking about stock that is trading around $2.50/share.
The pilots' union notes that, 4 or so years ago, the FAA (or whatever agency) raised the mandatory retirement age from 60 to 65. So the increase in retirements at AMR now is no big deal. That makes sense to me.

1 Reply

@realjohnboy,

Raising the MRA five years makes no sense to me. It just means more old codgers in the workforce taking the jobs of youngies who still have something to prove. Ridiculous.

It makes the assumption that the youngies are unfit for the tasks ahead of them which is a savage criticism of the educational system and that is under the control of the old codgers who can be thus suspected of organising that the youngies are unfit to prevent them challeging the old codgers on efficiency.

Absolutely ******* ridiculous. It's as if we are on a cultural suicide mission.

2 Replies

@spendius,

Spendius is waking up to the US Christian way!

1 Reply

@reasoning logic,

The US Christian way is what delivered the goods. It's the amoral, atheistic materialists I blame for the silly and un-necessary fiasco. And the gumps who go around making stupid statements like your's rl thinking they are meaningful and a part of the argument which they are not.

I've been wide awake since I read Veblen. Now you go read him. You try waking up. See how you like it.

1 Reply

@spendius,

The Pilots' Union explanation about why there is a bump in AMR's retirements now clarifies things a bit.
I would agree with your thesis. Pilots were told that they could retire at 60, but now they can, if they choose, hang on until 65. That does indeed shut out the new pilots.
I don't know a lot about about the airline business. My suspicion is that they looked in the "Pension at 60" money box and discovered it was way underfunded.

1 Reply

@spendius,

Spendius I am only saying that christian rule our country and make the decisions here. I can not make them change their minds on how they try and convince us dumb masses to vote!

1 Reply

@realjohnboy,

I presume you're suggesting that a number would die in the extra years of working and that would relieve the pressure on the pension pot which is shrinking as we speak.

1 Reply

@reasoning logic,

I don't see any sign that Christians rule the US.

1 Reply

@spendius,

No. I am suggesting that the ball gets punted down the field until the bonus checks for executives get cashed.

1 Reply

@spendius,

Quote:

I don't see any sign that Christians rule the US.

A wicked and adulterous generation seeketh a sign but the only sign they will receive is a make believe fish story! {Johna}

1 Reply

@realjohnboy,

That's been the strategy for many a long year. We call it kicking the ball into the long grass far enough so it won't be brought back during the incumbent's term of office.

I'm not sure I can see a way out. Fundamentals are incoherent imo.

0 Replies

Amazingly enough, markets in Europe were relatively calm (and up in the U.S.) despite widespread strikes in Greece and a downgrade in the rating of Italy's debt.
There seems now to be some consensus that banks will have to write down their Greek loans ("take a haircut" is the American phrase) of 50%.
That is more than was expected a week or so ago, and sets the stage for similar outcomes in other countries. As I read it, the big banks will likely get bailed out to the tune of $400Bn, while smaller banks will be allowed to fail.
Is that close to what you all are hearing?

1 Reply

@realjohnboy,

I think the major European powers have wisely given up on the effort of avoiding a Greek default, and are looking instead only to limiting the damage to their banks, and thereby the potential for further contaigon.

0 Replies

@reasoning logic,

I'm confused.

I thought it was the Jews who ran the US...or am I thinking of the world?

1 Reply

Greece will default. Italy, Portugal and Spain may follow. The interesting thing to me, George, is how will France and Germany respond. Will they deem some banks too big to fail while allowing littler ones to do so?
Isn't this a replay of what happened in the U.S. a few years ago at the end of the Bush administration and the start of Obama's? Some argued (and still argue that) we should have let the big, greedy banks with way too high executive pay rates fail.
I suspect that there will be the same decision in Europe regarding too big to fail.

2 Replies

@Finn dAbuzz,

Quote:

I'm confused.

I thought it was the Jews who ran the US...or am I thinking of the world?

The Jews run the Christians and the Christians rule us with their laws!

0 Replies

@realjohnboy,

realjohnboy wrote:

Greece will default. Italy, Portugal and Spain may follow. The interesting thing to me, George, is how will France and Germany respond. Will they deem some banks too big to fail while allowing littler ones to do so?
Isn't this a replay of what happened in the U.S. a few years ago at the end of the Bush administration and the start of Obama's? Some argued (and still argue that) we should have let the big, greedy banks with way too high executive pay rates fail.
I suspect that there will be the same decision in Europe regarding too big to fail.

In fact Greece has already defaulted on some debt obligations. Increasingly it appears that the sometimes odd slow walking of the European Powers on this matter was simply a symptom of their early conviction (probably correct) that Greece was beyond saving and would require the consequences of default to begin to deal with the reality it has created. Instead it appears the intention of the French and Germans all along was to limit the damage to national banks, and, depending on the unfolding crisis, prevent the contagion from spreading to othert eurozone countries and possiblt threatening the EURO itself.

I find it hard to guess just what might be the plausible limit of the contaigon, but it increasingly appears likely there will be IMF action to shore up the ECB and in effect use (newly created) dollars to do the job. The net result here of course will be the ultimate depreciation of the dollar as the money starts to move through the system.

0 Replies

Where is the US economy headed?

Related Topics

Quick Links

My Account

able2know