Posted on 12/30/2008 5:29:13 PM PST by BenLurkin
...
There will be plenty of pain in 2009, as employers cut more jobs, the unemployment rate rises toward 8 percent or higher, and shellshocked consumers curtail spending even more. But beneath the dismal headlines will be some hopeful trends. Here are some of them:
1) More saving. If you haven't heard by now, the savings rate in America is alarmingly low - barely above zero. ...
For once, anxious Americans appear to be putting more of their paycheck in the bank. ...
2) Smarter spending. Most middle-class Americans could find ways to cut their spending by 10 percent without downgrading their lifestyles all that much. That kind of cutback would be a disaster for stores, but it ultimately benefits consumers because frugal spending forces retailers to offer the best possible products and add as much value as possible.
...
3) Great buying opportunities. Nearly everything is cheaper than it was a year or two ago - electronics, gasoline, cars, homes, and especially stocks. That's no excuse for impulse shopping. But it's a great chance to buy things you might need eventually, like a new computer server for your business, or a minivan for your family. Talk about "deflation" might leave the impression that we can now take low prices for granted. Don't count on it.
...
(Excerpt) Read more at biz.yahoo.com ...
You read it here first.
Unless the government gets involved and tries to “fix” the economy with more bailouts, inflation and public debt.
Unfortunately, the messiah is determined to follow the example of FDR and parlay a recession into a depression in order to grow government.
Well, two others beat me to it but just to throw my voice into the chorus, it would not be bad but for massive government intervention and the Fed. Nationalization of entire industries and depreciating currency are greater problems than a recession.
>>”9) The nearing end. Not the end of the world - the end of the recession. We’re in the middle of it now, and the economy will get worse before it gets better. But in a downturn the economy starts to improve, little by little, before a lot of people realize it. ... But those determined to make their life better will get their chance. We still do that in America.”<<
Actually, I don’t think we’re fully out of the second inning. It’s not 1929. It’s 1930. Anybody want to take a stab at what the stock market did between 1930 and July of 1932?
hint: it makes the October 1929 crash look like a bull market.
>>Unfortunately, the messiah is determined to follow the example of FDR and parlay a recession into a depression in order to grow government.<<
It’s what I expect as well. And this time around the nation does not have the moral character it did back then. Social unrest, here we come.
Yes, I agree. People do not see the similarities. It is indeed 1930. Even conservative economist say the only way to avoid another great depression is to stop the deflationary cycle by throwing money at the economy-both by stimulus and by printing money. I hope the GOP will not filibuster because I don’t want a depression especially one which will be blamed on Pres. Bush and the GOP.
ping
The gov’t will screw up any good news.
Wonder why they left that one out.
They are wrong. Hyper-inflation is more likely than deflation. Government needs to step back and stop trying to help.
FDR inherited a depression. Hoover threw money at the banks (sound familiar). There was a long period between the election of FDR and when he took office. Not much was done. By the time FDR took office, the country had gone to hell. Say what you want, people would have starved if it was not for FDR. I believe we might have seen social unrest to the point, the government would have be overthrown. Warren Buffet has stated publicly that we need a huge stimulus package.
There will be inflation down the road if we are lucky and it works. We can deal with that then. We would have avoided a depression.
There is no such thing as a good recession. The author is an idiot.
The best thing that will arise out of the recession is the demise of incompetents and crooks like Bernard Madoff.
Oh, and Warren Buffett can go suck eggs.
Was 1932 a big fall after the 1929 fall?
Wrong - a good recession is one that a democrat presides over. A bad recession is one that a republican presides over.
All recessions are bad? What kind of fair and balanced crap is that? Where have you been getting your information? Fox News???
Sheesh.
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