Joanne98
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Wed Jul-15-09 01:23 PM
Original message |
The Fed Sees Increasing Unemployment As A Positive For GDP |
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The economic mavens in DC have totally lost it. Now an increase in unemployment will allegedly lead to a rebound in GDP??? Is anybody besides Dick Bove drinking this kool aid any more? http://www.federalreserve.gov/newsevents/press/monetary/fomcminutes20090624.pdfhttp://www.zerohedge.com/article/fed-sees-increasing-unemployment-positive-gdp:wtf: :nuke:
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FiveGoodMen
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Wed Jul-15-09 01:27 PM
Response to Original message |
1. The guys with money always like it when there are hordes of desperate people |
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who will do all the work for peanuts.
Stock market rises when unemployment goes up.
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CoffeeCat
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Wed Jul-15-09 07:13 PM
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7. I understand what you're say.. |
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...but I'm completely befuddled. I looked at the stock market today, and I couldn't believe how the market rose today.
WTF?
Yeah, there's a lot of cheap labor around--but people are not consuming like rabid weasels any more. How can many stocks, especially the retail and service sectors, be doing well?
Great...Target and GM can find cheap labor--but if people aren't buying trinkets, outdoor furniture and cars---someone please explain to me how the stock prices of these companies rise?
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FiveGoodMen
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Thu Jul-16-09 10:35 AM
Response to Reply #7 |
10. I'm truly no expert on this, but I think the stocks go up due to anticipation |
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of greater profits.
If those profits don't materialize pretty soon, people will start selling them and their value will drop again.
That's just my guess.
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AdHocSolver
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Sun Jul-19-09 02:39 AM
Response to Reply #7 |
12. The stock market is a giant Ponzi scheme unrelated to the real economy. |
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Enron faked profits to get people to buy its stock. This means that demand for the stock goes up. As demand increases faster than supply (supply meaning people willing to sell stock shares), the stock price is bid up.
The buying and selling of stock shares and the price of the stock has nothing to do with the profitability of the company. Enron's stock was soaring even as it was losing money, because the people who had money to spend on stock shares believed it was making money. The insiders, that is, the corporate executives, sell before the truth comes out, and walk away with the money of the last investers.
In a well-run Ponzi scheme, in reasonably good economic times, the insiders repurchase stock shares after the price drops on the big sell off, and start the scheme all over again.
The Federal Reserve is involved in the Ponzi schemes by keeping interest rates artificially low. The stock brokers tell the investors (aka suckers) that they can make a bigger return on investment by taking their savings out of the banks and buying stocks. This does happen for awhile. However, most people lose money in the stock market. Only a small number make a lot of money and most of that is made by the corporate insiders, the stock brokers, and the bankers.
The stock brokers will point to hypothetical investments in stocks over twenty years and claim you are better off investing in the stock market as a "hedge" against inflation. That is not true either because the measures of inflation, even by the government, severely underestimate inflation. The alleged stock market gains aren't real either.
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TheWatcher
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Sun Jul-19-09 11:52 PM
Response to Reply #7 |
15. It's easy to believe. it is nothing more than a Manipulated Artificial Casino |
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60-70% of this BS is nothing more than Electronic Program Trading on any given day.
We Don't HAVE a functioning Free market.
And then there is the Goldman Sachs Algorithm Program that "COULD Be Used To Manipulate The Market in Unfair Ways."
The Whole Thing is a fucking Joke.
The only thing people should be doing is paying attention to Main Street, not Wall Street.
Wall Street isn't real.
Main Street is VERY Real. And it's getting worse.
There is NOTHING Fundamental in the REAL Economy that is Improving, Propaganda and grand Chess games notwithstanding.
Things are not what they seem, and haven't been for a long time.
Look into it.
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Sebastian Doyle
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Wed Jul-15-09 01:28 PM
Response to Original message |
2. And that is why the "Federal Reserve" (which is neither) need to be abolished |
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The economy is NOT about the goddamn useless criminal pieces of shit in the top 1%. :grr:
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FiveGoodMen
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Wed Jul-15-09 03:02 PM
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FiveGoodMen
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Wed Jul-15-09 03:18 PM
Response to Original message |
4. Wow. Only 3 (net) recs. |
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Surprised that DUers don't think this is more important.
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TheWatcher
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Wed Jul-15-09 03:53 PM
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6. It's not what they want to hear, and doesn't make them feel good. |
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Edited on Wed Jul-15-09 03:54 PM by TheWatcher
There is nothing about "Green Shoots" or the Recession actually ended five years ago, money on the sidelines, or any other useless Propaganda they depend on to help them through the day.
All this is is the criminals saying, "Fuck You, Fuck We The People, your suffering benefits us, we've got ours, now you go eat cake and like it."
Instead of gurgling on CNBC's pap, we SHOULD be abolishing The Fed.
It would be a good start at least.
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Coyote_Bandit
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Wed Jul-15-09 03:46 PM
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Flesh and blood people are unimportant to our government. The only thing that matters is the almighty dollar and the continued profits of the multinational corporations. They are the ones who own the government. And lest we forget the Fed is a private corporation.
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Joanne98
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Thu Jul-16-09 04:33 AM
Response to Original message |
8. You know this actually makes sense to me. The GDP numbers are calulated |
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on wealth creation. A change that's slowly been taking place since Raygun. Working people are just surviving so they don't add to the GDP anymore. This is more evidence of the two Americas. The one at the top is the only one that gets counted now. The fucking of the American people is complete. We are invisible.
I didn't know what to think about Bernake before this. Now I know. We need a LEFTIST in charge of the Fed.
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whosinpower
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Thu Jul-16-09 03:57 PM
Response to Reply #8 |
11. Less salaries to pay equal more profit |
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Hence increased GDP.
There is a problem with the scenario, if it would play out to its completion....there would be no workers to consume tangible products which is required for companies to remain solvent - there must be a buyer and a seller of something to generate wealth. BUT, what if you could generate money or wealth from nothing at all - isn't that what the banks do? I know, this is short sighted as well, for without workers who pay mortgages, take out loans for cars, homes, home improvements, how could the banks possibly remain plausible.
The keystone to all of today's American wealth is not the worker anymore. It is bubble economics - forcing people to gamble on Wall Street, and stripping away the workers value of wealth creation. This holds a gigantic risk that can only be sustained by one thing and one thing only - trust in the US greenback.
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LBJDemocrat
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Sun Jul-19-09 01:15 PM
Response to Reply #11 |
13. "there would be no workers to consume tangible products " |
OhioChick
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Thu Jul-16-09 08:49 AM
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Zynx
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Sun Jul-19-09 03:41 PM
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14. That's really not what that table is saying at all. |
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They simultaneously upped their GDP growth projections and unemployment projections because unemployment is already higher than they had anticipated in April, but the prospects for growth, in their estimation, are better than they had thought.
Also, and more importantly, the forecast might be saying that higher than previously estimated growth is needed to reduce unemployment or to stop it from rising.
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