No recession

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We’re not in a recession. We are in the midst of an economic disaster. This one will hit everyone whether you choose to participate or not.
 
Cuddy_Duck said:
…one month later…:ouch:
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One month ago we didn’t know that Dodd, Pelosi, and Frank had sold our nation to the lowest bidder. You make it sound like you knew; did you?

By the way, we still are not “officially” in a recession, but it sure looks like one is coming. It still would be easy to avoid, if the liberals had one ounce of courage. Just do away with the capital gains tax for two years and watch the economy grow like a weed.

The really “good” thing about the recession is that the democrats can’t raise taxes now … or are they that dumb?
 
goofyjim said:
We’re not in a recession. We are in the midst of an economic disaster. This one will hit everyone whether you choose to participate or not.
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… we didn’t listen to Bush, Greenspan, McCain, and others who warned us of the possibility of this happening. I know, I know, Bush is a big dummy. I wonder who is smarter, Bush or Maxine Waters, Bush or Nancy Pelosi, Bush or Barney Frank, Bush or Chris Dodd, Bush or the brilliant Americans who elected these moon units.
 
pnewton said:
Nor can the Republicans spend our way out of it.
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Good point. The government should do the things government is fairly good at; extending jobless benefits, lowering the discount rate, and then stay out of the way. The economy will recover, but not for long if we keep funding freddie mac and sallie mae, and bailing out the losers.
Cuddy_Duck said:
Bamarider! I hope you know you didn’t listen! feel the shame!😛

:rotfl:
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Keith, you’re gonna blow a head gasket if you don’t calm down.
 
Employment is at 94%.

Maximum full employment is 95%.

So, we are about 1% below the maximum full employment level.

Energy companies are hiring as fast as they can to produce more energy (oil and gas). Boeing has an order book with about 1000 planes in their backlog and that cascades up to all their vendors for engines, avionics, landing gears, airframe subassemblies, etc. Unfortunately, the union at Boeing is on strike. I don’t know what the numbers are … in terms of the strike impacting the total unemployment number.

Recession employment is 90%.

Depression employment is 70%.
 
Well if all you measure a recssion by is unemployment… We are in worse than a recession. We are in an economic meltdown my friends. The markets and all assets tied to them have gone down 40% in one year. If this ain’t a downturn, then what is? And it looks like worldwide there is no end in sight.
 
goofyjim said:
Well if all you measure a recssion by is unemployment… We are in worse than a recession. We are in an economic meltdown my friends. The markets and all assets tied to them have gone down 40% in one year. If this ain’t a downturn, then what is? And it looks like worldwide there is no end in sight.
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What is going on with the stock market is panic selling.

People call up their 401(k) plan administrators or go on line and they sell stock funds and want the sales proceeds to go into money market funds.

The mutual fund managers have to sell the underlying stocks to raise the cash … they don’t keep large cash reserves on hand. And since they have to unload huge amounts of stock, the prices plunge.

And that’s what’s going on now.

As long as people are still employed, people are buying products and people are making products.

There are 8000 or so companies whose stocks are on the various markets.

Anyway, it’s panic selling.

At some point the people on the sidelines with all that cash that they are pulling out of the market and … since 94% are still employed and have money available … at some point those folks will realize there are great bargains out there and will jump into the market … and then there will be a buying panic.

In real estate, housing sales contracts are up 7% over last year. The prices of houses have dropped to the point that the bargains are irresistible to folks who want to buy a house and who have been saving up their money.
 
goofyjim said:
Well if all you measure a recssion by is unemployment… We are in worse than a recession. We are in an economic meltdown my friends. The markets and all assets tied to them have gone down 40% in one year. If this ain’t a downturn, then what is? And it looks like worldwide there is no end in sight.
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Well Jim, it’s not much of a recession if everybody still has their jobs, if the economy is still producing goods and services, and consumers are buying them. I’ll still be a little surprised if the economy doesn’t shrink a little, just because of re-valuation. But the economic indicators don’t seem to point to a major recession, or even a minor recession.

The people who are really going to get hurt by this “economic meltdown” will be those who bought more real estate than they can afford.
 
Al_Masetti said:
What is going on with the stock market is panic selling.
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Yep. Panic selling cause by the MSM wanting to further a power grab by the Marxist Left. :mad:

Maybe we need a class action lawsuit against CBS/ABC/NBC/CNN/MSNBC. Use the left’s tactics against them. :cool:
 
RWMorris said:
…Just do away with the capital gains tax for two years and watch the economy grow like a weed.
The really “good” thing about the recession is that the democrats can’t raise taxes now … or are they that dumb?
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News flash! Taxes are scheduled to raise to the very old levels of the past. Check out the automatic major tax increase in store for all of America at irs.gov. (The Dems are just dripping with saliva.) The tax law enacted about twenty years ago that reduced the number of brackets among other things, will be expiring. I always said it was a poison pill–time released version. This couldn’t come at a more inappropriate time. A sudden increase in tax liability for ALL of America, will pretty much “seal the deal.” (D*mn those dems, traitors of all life.)

Also, people in the 10 and 15% brackets will have 0% tax on cap gains this next year.

If people would tune into irs.gov once in a while, they’d be able to manage their finances better. It wasn’t too much of a stretch to realize that there was going to be a giant sell-off in mutuals to take advantage of the new lower cap gains tax.

The one, really bad thing that happened is that the lawmakers changed the law for music composers. If a composer sells his compositions outright, without retaining any of the rights, he gets to treat his income from the sale as capital gain. If he retains the rights to his sweat and tears, it is taxed as ordinary income.

This law encourages the ‘robbing’ of intellectual property. Mark my word, this is only the beginning of this type of intellectual property theft. As oil-rich foreign companies move to acquire American business assets, more than just ‘cotton’ will be bled from the US. Our very hearts and souls will be taken away.
 
Al_Masetti said:
Employment is at 94%.

Maximum full employment is 95%.

So, we are about 1% below the maximum full employment level.

Energy companies are hiring as fast as they can to produce more energy (oil and gas). Boeing has an order book with about 1000 planes in their backlog and that cascades up to all their vendors for engines, avionics, landing gears, airframe subassemblies, etc. Unfortunately, the union at Boeing is on strike. I don’t know what the numbers are … in terms of the strike impacting the total unemployment number.

Recession employment is 90%.

Depression employment is 70%.
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Great points al. I live in a mining area. We produce taconite pellets which are inturn sold to steel mills to produce steel. Our community is relatively small 18 thousand, railroad tracks run pretty much through the center of town. All day and all night we hear the train whistles as they come through, empty one direction and full of pellets on the way out, 7 days a week. The mines are hiring, just ratifying new contracts. About 10 miles west of here, a brand new direct reduction steel plant is being built. I keep hearing the economy is so bad, but everyone I know has got a job. My best friend just bought a lovely new home last week, and a couple girls at work have purchased new cars this week. I don’t know… it makes you think.
 
RWMorris said:
… we didn’t listen to Bush, Greenspan, McCain, and others who warned us of the possibility of this happening. I know, I know, Bush is a big dummy. I wonder who is smarter, Bush or Maxine Waters, Bush or Nancy Pelosi, Bush or Barney Frank, Bush or Chris Dodd, Bush or the brilliant Americans who elected these moon units.
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You mean this Bush?
The Clinton administration was especially proud of the rise in home ownership during the 1990s, particularly among lower income and minority groups. While home ownership rose 7% among white households during the decade, it increased 13% among African American households and 18% among Hispanic households. This could not have happened without the regulators’ blessing and encouragement.
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President Bush readily took up the homeownership baton at the start of his administration in 2001. Owning a home became one pillar of his “ownership society,” a vision in which everyone would possess a stake in the American economy. For millions, this meant owning their own home. In summer 2002, Bush challenged lenders to add 5.5 million new minority homeowners by the end of the decade; in 2003 he signed the American Dream Downpayment Act, a program offering money to lower income households to help with down payments and closing costs on a first home. Lenders gladly accepted Bush’s challenge.
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To reinforce this effort, the Bush administration put substantial pressure on Fannie Mae and Freddie Mac to increase their funding of mortgage loans to lower-income groups. Both Fannie and Freddie had been shown to have substantial problems during the corporate accounting scandals in the early 2000s, and both were willing to go along with any request from the administration. [The Office of Federal Housing Enterprise Oversight] OFHEO set aggressive goals for the two giant institutions, which they met in part by purchasing subprime mortgage securities. By the time of the subprime financial shock, both had become sizable buyers of the Aaa tranches of these securities.
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maryj said:
Great points al. I live in a mining area. We produce taconite pellets which are inturn sold to steel mills to produce steel. Our community is relatively small 18 thousand, railroad tracks run pretty much through the center of town. All day and all night we hear the train whistles as they come through, empty one direction and full of pellets on the way out, 7 days a week. The mines are hiring, just ratifying new contracts. About 10 miles west of here, a brand new direct reduction steel plant is being built. I keep hearing the economy is so bad, but everyone I know has got a job. My best friend just bought a lovely new home last week, and a couple girls at work have purchased new cars this week. I don’t know… it makes you think.
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My mother lost her job on Monday, along with 20 other people from her building alone (not counting all the people at other locations in her company). Our friend was fired from her last nursing job due to recurring health issues that were out of her control and caused her to miss work and has not been able to get another job for well over a year. My labmate’s father has been out of work since February. I haven’t talked to my high school friends’ father recently; last I knew he was out of his long-time Ford engineering job and hadn’t found anything for months. My mom’s former coworker is hoping she’s not cut next because her husband works in construction and has been laid off indefinitely.

Hopefully this will also make you think. I’m glad that people in your small community are doing well. Unfortunately the country overall has eliminated three-quarters of a million jobs in 2008 as of September. If you ask a broader spectrum of people across the country, I suspect the answer will not be so positive.
 
Seeker Jan,
Does your mother live in Michigan? Unfortunately, the worst economies are in states like that. They have been unable to
attract new industries because of their high taxes and therefore
there are no new jobs going into those states. There are other
problems, of course, but that is a big one.
The answer is for voters to clean house with the people in leader-
ship positions and change the dynamics. I understand that there
are areas in Michigan that are not as bad as Detroit, but Detroit
drags down a lot of the economy.
I will keep your mom in my prayers.
 
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