SittingBull
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Sun Feb-05-06 04:16 AM
Original message |
US economy in great depression? |
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Last time the saving rate was negative was 1934 and 1935, in the mids of great depression... Be careful if someone try to explain this time now is totally different. Please notice also: http://www.resourceinvestor.com/pebble.asp?relid=16712Full report: http://www.gata.org/CheuvreuxGoldReport.pdf
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Erika
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Sun Feb-05-06 04:37 AM
Response to Original message |
1. Yes, the working class and the low income |
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are prety well up the creek without a paddle. W tells them to be happy because he hasn't let the river yet go dry.
What a president, what a country.
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magellan
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Sun Feb-05-06 04:39 AM
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SittingBull
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Sun Feb-05-06 08:24 AM
Response to Reply #2 |
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They lie about everything. There's IMO no chance that they do not lie about GDP, CDI, jobless rate and other core economic data.
In fact you to could do some homework and search for adjustion of statistically methods.
The reality is ugly.
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magellan
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Mon Feb-06-06 01:03 AM
Response to Reply #9 |
12. The reality can get a lot uglier |
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And many, including myself, believe it will. But we're not in another Great Depression yet.
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CoffeeCat
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Sun Feb-05-06 05:02 AM
Response to Original message |
3. There are other bad signs too... |
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A week ago, someone posted a GDP graph that nearly made me fall off of my chair.
The graph showed GDP growth with MEW (Mortgage Equity Withdrawal) and without MEW.
Without MEW, GDP has several quarters of negative growth, and a few with very slight growth.
With MEW, the economy appears to be humming along just fine. The numbers appear healthy. When BushCo releases the GDP numbers, he touts the growth with MEW included.
Without the dollars from MEW--people spending their home equity--our economy would be stagnant or declining. It's pretty frickin alarming that are economy is being temporarily propped up by people using their homes as ATM machines.
This feels so deliberate. BushCo loosened bank restrictions and now many people find themselves taking out 2nd, 3rd mortgages. Also, I just read that half of all new home loans are interest only. Many are borrowing 500k, and paying only $1,200 per month for that money. What happens, in a few years--when their payment doubles? Assuming that most of these people don't move--there could be a shitstorm. If many planned to move before the payment soars--it may not be so easy. If the economy tanks, expensive homes may be hard to move.
I feel like the Republicans in Congress and BushCo have given the middle class just enough rope with which to hang themselves, and that soon the noose will be tightening.
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SoCalDem
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Sun Feb-05-06 05:12 AM
Response to Reply #3 |
4. Americans have been using their houses as ATMs |
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The pattern is the same everywhere.. want that new bar?? BUY it.. Want those $300 shoes? BUY them..can't pay off those credit cards? Re-Fi..RATES ARE LOW LOW LOW... Of course the slick companioes who ballyhoo this are only too happy to remind the people that since their house has appreciated SO much, they can get a bunch of equity out, pay off their bills, and still have the same payment.. Of course they start over with a new 30 yr note every time, or worse yet, they get talked into an interest-only loan that will have to be renegotiated in a few years..
My friend has let her asshole boyfriend talk her into this.. 10 years ago she bought a fantastic house for $99K, put $29K down and had a mortgage of $560 PITI a month.. Of course the house got "valuable" and he saw his chance to grab for the brass ring.. They now have a 220K mortgage with house payments of $1800 a month, and if the market drops a bunch, they will be upside-down in no time..:(
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BlueEyedSon
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Sun Feb-05-06 07:43 AM
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FloridaPat
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Sun Feb-05-06 08:17 AM
Response to Reply #3 |
7. Military spending is in GDP too. I'd say the economy is in big trouble. |
SittingBull
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Sun Feb-05-06 08:21 AM
Response to Reply #7 |
8. And hedonistic adjustion, too |
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and you have the now inverted yield, a 100 % sign for recession, you bet.
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Deja Q
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Sun Feb-05-06 05:15 AM
Response to Original message |
5. The explanations are obvious: |
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* Debt * Unemployment * Any new jobs in sectors with no growth (retail) or skills required
The ideal "service economy".
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Nay
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Sun Feb-05-06 09:59 AM
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10. My question is -- what the hell does it all really point to? I have |
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been expecting the economy to go to hell for 10 years -- and the money boys keep finding ways to prop it up by giving the rubes yet another way to scrape up money to spend (refi the house, another credit card, etc.). When does it end? Can it end, if yet more ways can be found to prop things up? I would have thought the end would be here by now.
Will some economist answer this?
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SittingBull
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Sun Feb-05-06 11:45 AM
Response to Reply #10 |
11. You don't need some economist |
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Edited on Sun Feb-05-06 11:45 AM by SittingBull
they're blinded by their economic religion.
Everybody with an open mind can clearly see it, how it all must end.
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lpbk2713
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Mon Feb-06-06 01:06 AM
Response to Original message |
13. Tune in to Limbore tomorrow. |
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He'll say how absolutely great the economy is doing and how everyone who wants a job has a job. He always does.
That lying sack of shit.
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DU
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Tue Apr 23rd 2024, 06:10 PM
Response to Original message |