Actually, our economy is about to go in the toilet.
Some of it is how stupid banks were giving loans to people who shouldn't be getting loans (at least not as big as they were)
A lot of it will be oil. We can't drill, we can't build a refinery and China is using up all the oil. Therefore, everything will start costing more very soon to make up for it....that equals inflation.
The dollar is going to be worth less than a peso soon.
Things are not looking up right now...but the problem this time seems to be global factors. I really don't have a solution on what we are supposed to do...
Thursday, November 08, 2007
Fed Chairman Says Economy Likely to Slow
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12 comments:
We're doomed! :p
Damn Liberals!
Wait. Haven't you been telling us for years that the economy is really great and Bush's tax cuts were the greatest and the liberal MSM is just lying to us?
Jay, you can't be such a simpleton to think that the economy does not have ups and downs, and that other factors don't change the economy?
I thought the economy was going great for everyone from Neil Cavuto to the last republican spin master!
For others, it was quite obvious: Housing Market bubble, reckless spending (from both Govt and public), record national debt(more than 9 trillion!!), two bleeding wars, uncontrolled outsourcing and failing confidence in dollar were strong signals.
For decades, we enjoyed the unique advantage of 'petrodollars' - allowing us create money out of thin air! With Euro and other economies getting stronger, our very model is threatened.
As usual, American public is more interested in dem-rep mudslinging, 'dancing with the star', pornography and putting on more weight.
Well, what do you expect??
The real reasons that the economy is in danger right now-
When Bush was elected, he falsely sold his tax cuts for the rich as an economic stimulus, which it was not. In order to mask the failure of these tax cuts to stimulate the economy, and to recover from the economic shock of 9/11, the heads of the Federal Reserve banks took the historically unprecedented step of reducing interest rates so low that they were actually negative when adjusted for inflation.
Banks make money by borrowing money at a wholesale rate and lending it out at a higher interest rate. With this massive supply of cheap credit, they were very lax in determining the creditworthiness of the individuals and institutions that they were lending to.
At the same time, to finance Bush's grand middle east adventure without requiring any sacrifices from the American public as previous CiC's had done during wartime, our government started selling massive amounts of debt.
So basically, we have a country that has an economy that has been supported by consumer spending. But that consumer spending has been financed by low-interest-rate credit.
Now, not only are we not going to be able to maintain our current spending/spending pattern to keep the economy moving forward, but we are not even going to be able to afford to make the payments on what we've already borrowed.
Of course, we can't say we didn't see it coming. The banks sure did, that's why they made sure to get their bitches in Congress (Republican and Democrat) to pass the more restrictive bankruptcy laws a couple of years ago.
Of course, it will eventually correct itself, but the result will be millions of Americans experiencing bankruptcy, losing their homes, and being driven down into poverty, while even those of us who were smart enough to not fall into the trap have to suffer from the declining stock market, stagnating wages, and plummeting property values.
There's your precious so-called "free market" in action...Just because republiecans wanted to pass their precious tax cuts.
But, realism...
What about Larry Kudlow, and "Goldilocks"??
I saw it on the teevee!
Larry wouldn't lie to us, would he??
yeep
snert
gravitch
Bush's tax cuts worked for 5 years...
I am seeing the partisan hacks at work...the economy has ups and downs no matter what you do...
Everyone gave clinton credit for "his" economy even though it was based on the "internet bubble."
Some of what realism said was true...banks were/are foolish. They give loans they should not be giving (I already said that).
The cost of the war does not help...
have to go now
All of you are drinking the Kool-Aid.
A few years ago everyone was complaining about the trade deficit, and how if we don't do anything about it, we're doomed!
Now, thanks to a cheap dollar, exports are at a record high, the trade deficit is falling, and guess what: we're doomed, because the weak dollar will deter investment!!!
One thing is certain-- if you watch the idiot box, we're doomed! (Of course the media corporations say this-- if the story was "everything OK," they wouldn't have an audience.)
Bush's tax cuts worked for 5 years...
No, they didn't. The record low interest rates just made it seem that way. Look at the rate of growth after the tax cuts and compare it to the rate of growth during the Clinton years, Bush I and Reagan before and after he cut and then raised taxes
Jason says "A few years ago everyone was complaining about the trade deficit..."
Well, I am complaining even now!! The solution is NOT to weaken the dollars!! Instead, we should be selling more than buying from others.
In every big corporation, 60:40 rule has been applied strictly to IT department for outsourcing. In other words, 60% of the jobs HAVE to be outsourced...otherwise, the portfolio director would be in trouble. These are all jobs that can easily earn 70K for an average american!
In Manufacturing sector, our trade deficit is insane!!
Probably the Hollywood and pornography are the only two places where you can still get 'made in america' stuff!!!
Phil thinks taxing and spending by the government is the real economy. He's just a tool for the Democrats and the Socialist left.
The problem is that the Democrats do not want problems solved by free markets and capitalism. They want a nanny state they control to make the peons equally miserable and impoverished, except for Democrat elites, like the Kennedys, who have their monetary assets off shore.
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