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Gov't is bungling the most important aspect of our economic recovery
The Daily Crux ^

Posted on 06/29/2009 7:24:13 AM PDT by sdw2009

Housing has led us out of every economic slump for the past 50 years, which is why this recession could go on for a long time...

(Excerpt) Read more at thedailycrux.com ...


TOPICS: Business/Economy; Government
KEYWORDS: agenda; bho44; democrats; economic; economy; housing; recovery; socialism

1 posted on 06/29/2009 7:24:13 AM PDT by sdw2009
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To: sdw2009

That “housing” (or any other particular commodity) can “lead” the rest of the economy out of a recession is nonsense.

In the age of computers and “on-time” delivery, recessions ought to be shorter than ever in history.

It is government that is making this recession long and deep. As long as Soetoro is in the White House, this recession will not be V-shaped or U-shaped, but L-shaped.


2 posted on 06/29/2009 7:35:05 AM PDT by Arthur McGowan
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To: Arthur McGowan
Pretty much the case. Thanks to the internet unemployment is no longer a "local" or "state" phenomenon. You can find and apply for virtually every job in the United States without wasting your limited resources trudging from city to city trying to find vacancies for which you qualify.

Businesses can find "better deals" quickly and efficiently.

No reason any normal recession should last more than a couple of months.

Unfortunately this is not a normal recession ~ the Leftwingtards are in power and they want to take us back to 1930s ~ in RUSSIA!

3 posted on 06/29/2009 8:02:11 AM PDT by muawiyah
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To: Arthur McGowan

“In the age of computers and “on-time” delivery, recessions ought to be shorter than ever in history.”

Just curious but, what’s that got to do with the price of jelly beans?


4 posted on 06/29/2009 8:32:04 AM PDT by foolishboi
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To: Arthur McGowan

“On time” delivery is a fairy tale, it turns into we don’t carry inventory and we’ll order it when you come to buy it. The businesses without inventory are the ones going broke not the fully stocked ones.

When we need a part, we need it right now, if the business has to order it then we can order it ourselves and save the overhead that we would have gladly paid if the part was on hand.

In fact, one of the most successful businesses I know is a parts company, they went out to all their customers businesses and got the model #s on all their equipment and stocked their individual shops with all the most used parts, once a month they inventory and send them a bill.


5 posted on 06/29/2009 8:33:57 AM PDT by tiki (True Christians will not deliberately slander or misrepresent others or their beliefs)
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To: anyone

As in the oil industry, there were a lot of rugged individualist types in housing who could go out and make a decent living or even a fortune through their own drive, ambition, skills, and hard work, and they did not tend to say “pretty please” or bow as often as they should - an army of restless John Waynes whom those murmuring in Washington’s halls instinctively loathed. The housing slump is a policy outcome, not an accident. In a way, we have tribal conflict in the US, not class conflict, exactly, and the Ivy League tribe holding Washington is prevailing, positioning a boot on the neck of the rest of us while telling themselves this is everyone’s natural position. The rest of us have to decide whether we support that assessment or not.


6 posted on 06/29/2009 9:03:33 AM PDT by Coyote Choir
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To: Arthur McGowan; sdw2009
"That “housing” (or any other particular commodity) can “lead” the rest of the economy out of a recession is nonsense."

I dissagree in part. Housing construction and sales are considered to be 6-9% of our economy. And indirectly the numbers are probably much larger, as a lot of manufacturing is for items in and around the home. You don't buy curtains, unless you have a home. You don't build a swimming pool unless you have a home.

Auto manufacturing employees 1.1 million and represents 4% of our economy. Autos used to be considered a much larger percent of our economy. A fact that probably accounts for governtment's willingness to bail them out.

Those are big sectors of the economy. If you can successfully incent those areas and get them moving again, the economy will benefit.

The downside is that incentives can distort the economy, and make subsequent corrections worse.

The question of whether to incent or not to incent, or to bailout or not to bailout really depends on what the root causes of the economic problems are.

If the economic problems are temporary in nature, I don't really want to see domestic industried descimated by temporary economic turbulence. But if the problems are long-term systemic problems, then we need to either address the root causes or let the economy work those problems out.

The current crisis was caused by several things:


7 posted on 06/29/2009 9:07:48 AM PDT by DannyTN
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To: Arthur McGowan

That “housing” (or any other particular commodity) can “lead” the rest of the economy out of a recession is nonsense.


Correct. Housing prices need to come on down, so the existing homes can be sold. The govt needs to keep it’s stupid hands off the market.


8 posted on 06/29/2009 9:11:58 AM PDT by camp_steveo
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To: Arthur McGowan

Agreed. But selfishly I want the market here in the SF Bay Area to stay depressed for just a few more months. The wife and I are looking at buying our first home in Aug./Sept. and the prices are at a level we can afford on a single income. This is an opportunity that only comes around once every 20 years or so and if we miss this window we will need to leave California. Of course that might not be such a bad thing.:)


9 posted on 06/29/2009 9:46:08 AM PDT by The Unknown Republican
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To: sdw2009

I am convinced that Obama’s goal is to destroy our economy in order to end our world leadership.


10 posted on 06/29/2009 9:51:33 AM PDT by DallasDeb (USAFA '06 Mom)
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To: Arthur McGowan

The dim party kneecapped the banking/mortgage industry for a reason. Our capitalist system is based on borrowing funds to build projects and then use the proceeds (profit) to pay back the loans. Screw up the whole loan system and you screw up the whole ecomonic system. This was done on purpose to win an election. L shaped recovery coming. Until the banks get back on thier feet, nothing else can happen.


11 posted on 06/29/2009 10:12:15 AM PDT by Texas resident
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To: sdw2009

I believe that the population in general cannot afford to pay more than 50% of income for housing alone, because of that I think housing prices have a long way to fall before that balloon is deflated. I therefore also think any bottom calls for the foreseeable future are either premature or wishful thinking.
The stretch from 1965 to 1980 or 82 was basically flat I hope this run is not that long, the new spending, deficits, and debt make my very wary though.


12 posted on 06/29/2009 10:23:55 AM PDT by thinkthenpost
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To: sdw2009

I believe that the population in general cannot afford to pay more than 50% of income for housing alone, because of that I think housing prices have a long way to fall before that balloon is deflated. I therefore also think any bottom calls for the foreseeable future are either premature or wishful thinking.
The stretch from 1965 to 1980 or 82 was basically flat I hope this run is not that long, the new spending, deficits, and debt make my very wary though.


13 posted on 06/29/2009 10:24:48 AM PDT by thinkthenpost
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To: Arthur McGowan
"That “housing” (or any other particular commodity) can “lead” the rest of the economy out of a recession is nonsense."

I dissagree, I think it can. Housing Construction and Sales are considered to be 6-9% of our economy. But the indirect effects are large. Much of what is manufactured is manufactured for use in or around the home. And larger homes, allow us to buy and own more stuff. Many services, plumbing, electricity, etc, prosper as home ownership goes up. And even the finance sector which includes mortgages will benefit.

The current crisis was caused by:


14 posted on 06/29/2009 10:54:45 AM PDT by DannyTN
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To: Arthur McGowan

L shaped. Intended. Part of the plan. Dims are in control and are at war against repub voters. Plain and simple.


15 posted on 06/29/2009 11:10:53 AM PDT by Texas resident
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To: tiki

Well, I never said that the factory stamps out a monkey wrench when the customer at TruValue asks for one at the checkout counter!


16 posted on 06/29/2009 4:36:22 PM PDT by Arthur McGowan
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To: sdw2009
The Democrats and FASCIST Obama are DOING IT ON PURPOSE!!!!




Here's the mind of Fascist Obama, from another poster LomanBill.


So you see, FASCIST Obama is currently on stage III of their plan "bring the country to the verge of crisis".

Don't you see it?


17 posted on 06/29/2009 4:47:30 PM PDT by Yosemitest (It's simple, fight or die.)
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To: DannyTN
WRONG!!!
The current crisis was caused by
18 posted on 06/29/2009 4:54:09 PM PDT by Yosemitest (It's simple, fight or die.)
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