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"Worst Is Yet to Come:" Americans' Standard of Living Permanently Changed
The Coming Depression ^
| 02/17/09
| Aaron Task
Posted on 02/19/2009 8:11:34 AM PST by TigerLikesRooster
Tuesday, February 17, 2009
"The Worst is Yet to Come"-America undergoing a Permanent CHANGE!
Posted Feb 17, 2009 12:53pm EST by Aaron Task in Investing, Recession
There's no question the American consumer is hurting in the face of a burst housing bubble, financial market meltdown and rising unemployment. But "the worst is yet to come," according to Howard Davidowitz, chairman of Davidowitz & Associates, who believes American's standard of living is undergoing a "permanent change" - and not for the better as a result of:
An $8 trillion negative wealth effect from declining home values. A $10 trillion negative wealth effect from weakened capital markets. A $14 trillion consumer debt load amid "exploding unemployment", leading to "exploding bankruptcies." "The average American used to be able to borrow to buy a home, send their kids to a good school [and] buy a car," Davidowitz says. "A lot of that is gone."
Going forward, the veteran retail industry consultant foresees higher savings rate and people trading down in both the goods and services they buy - as well as their aspirations.
The end of rampant consumerism is ultimately a good thing, he says, but the unraveling of an economy built on debt-fueled spending will be painful for years to come.
TOPICS: Business/Economy
KEYWORDS: consumption; corruption; freetrade; globalism; wealthdestruction
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To: TigerLikesRooster; PAR35; AndyJackson; Thane_Banquo; nicksaunt; MadLibDisease; happygrl; ...
2
posted on
02/19/2009 8:11:55 AM PST
by
TigerLikesRooster
(kim jong-il, chia head, ppogri, In Grim Reaper we trust)
To: TigerLikesRooster
A rising tide may lift all boats but the leaky ones should be allowed to sink to the bottom.
3
posted on
02/19/2009 8:14:06 AM PST
by
cripplecreek
(The poor bastards have us surrounded.)
To: TigerLikesRooster
I sincerely believe that the change (exactly what Obomba promised) will be permanent.
Within the next decade the differences between America and Russia will be difficult to ascertain.
4
posted on
02/19/2009 8:15:01 AM PST
by
IbJensen
(In 2008, Americans foolishly used their freedom to vote for “chains” not “change.”)
To: IbJensen
How did it come to this is the span of my short lifetime (41 years). sheesh
5
posted on
02/19/2009 8:18:15 AM PST
by
DonaldC
To: TigerLikesRooster
I’m not convinced that it’s gloom and doom time. There are many advantages to living a less consumption-oriented life.
6
posted on
02/19/2009 8:24:32 AM PST
by
Veto!
(Opinions freely dispensed as advice)
To: DonaldC
We came to this because the illiterate and ignorant are allowed to vote and the muslims put their man in office with foreign funding.
7
posted on
02/19/2009 8:24:34 AM PST
by
Neoliberalnot
((Freedom's Precious Metals: Gold, Silver and Lead))
To: TigerLikesRooster; Big Giant Head
That’s it, we’re going Amish.
8
posted on
02/19/2009 8:28:11 AM PST
by
Marie Antoinette
(Proud Clinton-hater since 1998.)
To: TigerLikesRooster
The race to the bottom courtesy of “free trade” and the globalist manipulation of our government/economy.
To: IbJensen
No it won’t. Russia will be more free market. When an ex-KGB former Russian Prime Minister tells us we are going too socialist, we are going too socialist.
10
posted on
02/19/2009 8:38:53 AM PST
by
autumnraine
(Freedom's just another word for nothing left to lose- Kris Kristopherson)
To: TigerLikesRooster
If nothing else we need to go from an economy where we borrow against tomorrows production to one where we live on today's (or even yesterday's) production. That transition will be as painful going the other direction was fun. But the alternative is complete collapse.
11
posted on
02/19/2009 8:44:38 AM PST
by
KarlInOhio
(On 9/11 Israel mourned with us while the Palestinians danced in the streets. Who should we support?)
To: TigerLikesRooster; freekitty; TXRed; ZULU; Arrowhead1952; 2ndDivisionVet
I encourage you to call Nancy Pelosi and thank her highness for her hand in destroying the USA.
202-225-3121
To: hedgetrimmer
The race to the bottom courtesy of free trade and the globalist manipulation of our government/economy. That's right...gone are the days when Americans had a God-given right to be paid far above the market wage, just because of where they were born. Those durn furriners have gone and got educated and productive and aren't willing to just give the fruits of their labors away for free. DANGIT! Don't they know they exist just to make things cheaply for Americans who don't have to produce anything to export in return?
13
posted on
02/19/2009 9:02:32 AM PST
by
Gondring
(Paul Revere would have been flamed as a naysayer troll and told to go back to Boston.)
To: KarlInOhio
If nothing else we need to go from an economy where we borrow against tomorrows production to one where we live on today's (or even yesterday's) production. That transition will be as painful going the other direction was fun. But the alternative is complete collapse. KarlInOhio, you are right on the money...I just fear that few will accept the reality.
14
posted on
02/19/2009 9:03:57 AM PST
by
Gondring
(Paul Revere would have been flamed as a naysayer troll and told to go back to Boston.)
To: KarlInOhio
If nothing else we need to go from an economy where we borrow against tomorrows production to one where we live on today's (or even yesterday's) production.Yep. I refer to that as the "Wimpy Economy", named after the Popeye character. "I'll gladly pay you Tuesday for a hamburger today."
15
posted on
02/19/2009 9:06:08 AM PST
by
dfwgator
(1996 2006 2008 - Good Things Come in Threes)
To: Gondring
gone are the days when Americans had a God-given right to be paid far above the market wage, just because of where they were born
Gone are the days when Americans had the right to eschew slave labor. Now the globalists have brought down that barrier.
Gone are the days when being born in America meant anything. Now it means being a bank for the government to withdraw the fruits of our labor, taxes on our wages, to 'invest' in third world communist slave labor countries so that transnational corporations can take advantage of slaves.
'Those durn furriners' have taken American taxpayer money, not independent investment form the companies wanting to do business there.
The "free traders" have leveraged all these loans so now the 'debt' owed by American taxpayers will end up greater than the GDP of the world.
Now why are you so glad that America has been destroyed?
To: hedgetrimmer
Gone are the days when Americans had the right to eschew slave labor. Now the globalists have brought down that barrier. Huh?!?
Nobody forces Americans to use slave labor!
We can pay exorbitant union labor rates and continue to make our products totally uncompetitive if we want.
We just shouldn't expect someone in Europe or South America or somewhere else to buy our products at outrageous prices when they can get them from workers willing to be paid less.
It's not "free trade" that's making you uncompetitive. Until you march around the globe and make others to buy your products by force, you have to make them competitive.
Now why are you so glad that America has been destroyed?
Silly question.
Why are you glad that people die? Why are you glad that the sun sets? Why are you glad that force equals mass times acceleration?
17
posted on
02/19/2009 12:00:07 PM PST
by
Gondring
(Paul Revere would have been flamed as a naysayer troll and told to go back to Boston.)
To: Gondring
Nobody forces Americans to use slave labor!
No one forced the Mattel toy executives to hire a factory in China that uses slave labor and produces poison toys. But due to "free trade" the company could do business there, and with slave labor to boot. Most Americans were unaware that Mattel was no longer a US company and bought the poison toys. Do you think if the administration and congress were honest they would restrict imports from slave labor countries like they used to do. Most Americans had NO IDEA that "free trade" would lead us to the destruction of our ethics and domestic economy, how could they? But here it is, we have more slaves in the US than since the civil war, the labor department has only let on to 140,000 but there are many more now. We also have slave made goods in our supposedly 'American' corporation retail stores. Why is that?
We just shouldn't expect someone in Europe or South America or somewhere else to buy our products at outrageous prices when they can get them from workers willing to be paid less.
You clearly have an antipathy toward America and what it means. Americans shouldn't have to march around the globe and do anything. If a so-called American company wants to sell their products abroad, fine. You are telling us that for them to do so, you have to kill the American domestic economy, which is destroying America and American independence. In your mind, when did the global economy become more important than American independence? Or did you never believe in American independence?
To: cripplecreek
19
posted on
02/19/2009 12:26:46 PM PST
by
1010RD
(First Do No Harm)
To: Neoliberalnot
Right. Only landowning males should be allowed to vote.
20
posted on
02/19/2009 12:28:40 PM PST
by
1010RD
(First Do No Harm)
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