Posted on 09/15/2007 2:24:18 PM PDT by AuntB
The new numbers on consumer confidence are out. They show American consumers very confident that the economy is going down the tubes.
Over in Asia and Europe, stocks plunged on fears that Americans may no longer be able to find the second jobs and recklessly borrow the money needed to buy imported stuff. Economists now freely use the "recession" word following the report that American payrolls fell in August, the first monthly decline in four years.
American consumers, in other words, are all dried up. And the discussion has begun on what kind of baloney economy kept them lubricated for so long.......
Of course, some professions thrive in tough economic times. Business should be brisk for bankruptcy lawyers. And we will need auctioneers to help unload foreclosed properties........
Today's "partying," he said, would lead to tomorrow's "hangover."
So here we are: The partygoers have downed a bottle and still they can avoid a hangover.
A recent article on the Motley Fool's British Web site offered "Five Ways to Prepare for a Recession." The prescriptions: Don't make big luxury purchases you can't pay for with cash. Build an emergency fund. Live more frugally. Reduce your debt. Find more work.
All sound advice, but consumers had better act fast — like five years ago.
(Excerpt) Read more at seattletimes.nwsource.com ...
Try again by adding another 0 at the end. It's $45,238 per person.
Sadly, yes we have. I have never seen FR so infected with people so scared of their own shadows as it is right now.
The concept of self-reliance? Dwindling
The idea of pulling one's self up by their bootstraps and plowing ahead in spite of difficulty? (either real or percieved) Extremely rare.
Instead, we have ever-growing camps of posters cheering the economy down, while at the same time complaining about it and wishing "someone" would "do something" to "fix everything".
“U.S. manufacturing alive and well (The good news is we’re doomed! Part II)”
Many seemed to be suggesting that a 3 percent or so increase in manufacturing meant that we had nothing to worry about from exports. Now we learn that it is difficult to find second jobs.
I am not really a doom and gloom type person, but we must manufacturer more domestically and we must purchase domestic goods and put our own people to work.
I suspect that salary and wage structures would be weakened in the short term, and I also suspect people will have to purchase less expensive homes in less luxurious areas, again in the short term. But it will be unavoidable.
The countries from which we buy so much in consumer goods would tell us, “Manufacturing and exporting is the way to go.” And they are right. The USA must manufacture more, export more, and buy more from ourselves.
I will have much more confidence when, in malls and electronics outlets, I can again see “Made in USA” TVs, radio, cameras, video cameras, computers, etc.
No need, we are all going to die from globalwarmingglobalcoolinggreenhousegasesevilrepblicans
I wish Greenspan hadn't caused the credit bubble with absurdly low interest rates. I wish he hadn't given people stupid advise to use ARMs to buy overpriced houses. I wish people hadn't stupidly followed his advice. I wish the cheerleaders here hadn't blindly jumped on the credit bubble bandwagon. Of course those are all history.
Fact is, our corporate, government and personal debt level is 300% of GDP, highest in history, higher than 1935 (270%). We have spent or speculated with that money, not invested it in productive capacity (unless you believe that granite countertops raise productivity). We have screwed ourselves thanks to the limpwrist politicians, Greenspan, and the Japanese who screwed themselves in the 80's and then screwed us with the carry trade.
There is no way out of this credit bubble without pain. Personally I'm not scared of that pain, but I am scared of what political consequences there will be.
Greenspan is a idiot with a failed Fed policy that has caused our current liquidity crisis (1% Feds funds rate? c’mon my 8 year old knows better). If he were the Chinese Fed chair he would have been on trial and executed by now...
c) A growing economy with retained net worth can sustain higher debt levels
What net worth? We have systematically dismantled our productive capacity and replaced it with service industries.
As financial markets become more efficient in the 1980's and after, consumer and business debt increased. The efficiency and lower debt costs from mortgage-backed securities, consumer debt pools, and other structures took consumers directly to the credit markets.
And now that debt market has imploded, time for them to update their cheat sheet. Basically what the sheet implies is that 3000 sqft tract mansions with granite countertops are a good enough reason to hock the future. I would ask them, where is the productive capacity to pay back the debt? The more I read about stuff like this, the more I believe in inflation will be choice of remedies.
Manufacturing has suffered due to technology advances, automation and productivity increases.
On the housing side, much more pain needs to realized to clear the excesses from the system.
The trades here make good money. In fact there are more jobs then there are skilled workers and skill is necessary in the building trades here, it is not just the ability of pounding nails. Craftsmanship comes into play. Builders here are highly skilled and many artists combine their careers into this trail Pride in workmanship for the majority, but still a work ethic for those less skilled they need as helpers. Drinking and drugs still a problem with many or a few weeks at sea pays more, lack of education often a factor.
So as I said before..we all pay for the states that cannot control their own borders. This is not a problem that just appeared overnight under Bush. Where was all this outrage a decade ago. When I lived in Chicagoland, a friend who owned a business would always try to screen the workers through social security cards way back before it was "in style politically" and would be told "that is personal information" so they would go with references and hope all was legal as they kept their workers for long periods and paid excellent wages and also relied on references. The workers were always on time and did excellent work whether white, Hispanic etc. Was seldom they would lose employees. Security measures were important in their job market as well, so they had to be overly cautious. They never had a problem but they were very careful in their screening.
Where I reside now, this is not a problem in fact; as I said there are too many jobs especially during tourist season which stretches almost 12 months out of the year. Visas are given to many students to fill these jobs and they can make change faster than our American kids and are so polite you make comment to the manager on the way out. He said they feel blessed with this opportunity.
Also a state where there are more retiree CIA then any other state, I am told by a knowledgeable source. Lousy taxes as a blue state but then the governor was re elected with only about 35% of the vote, the rest was split. There are more conservatives here then the Libs would hope to think. Those are the transplants from Mass and RI etc.
There is open employment for those in ship building as well, whether luxury crafts or military contracts.
So is no bad news for me. Bad news for me is overseas companies that need to return to this country and fill those voids in the auto industry. Could be easily done. However, the we have the bullying Unions to deal with, but that has declined unfortunately for the Unions. Nurses and related careers are high on the list of what is needed here with hiring bonuses. It is not just a service industry opportunity. Education is needed for many jobs.
Construction is $25 an hour as a helper. The real estate market adjusted slightly here but then there is not all this new construction like in other states. Sub divisions as known in other states are not part of our real estate makeup.
Cottage industries have really taken off in the past decade which also leads to more jobs. I have plenty of complaints but illegals in my state is not one of them. I also buy goods made within the state or locally. You might catch an van of apple pickers once in a great while but hardly is a problem. The DeCosta problems were cleaned out some years back by local and government officials. So filtering down in the trades you mention does not effect me like the border states. Take care of your own state and don't come crying to other states that have handled these problems when stemming years ago. Am tired of paying for what the politicians in other states could have done, chose not to do for votes, and promise to do after elected what they fail to do before their election attempt.
Have a good day. You break it, you own it.
A recent article on the Motley Fool’s British Web site offered “Five Ways to Prepare for a Recession.” The prescriptions: Don’t make big luxury purchases you can’t pay for with cash. Build an emergency fund. Live more frugally. Reduce your debt. Find more work.
Thankfully, hubby and I have been doing this most of our eight years of marriage.
“No need, we are all going to die from globalwarmingglobalcoolinggreenhousegasesevilrepblicans”
Oh yeah, forgot about that, since the weather’s been so nice lately. Thanks for the reminder.
That decides it for me. I’m off to buy an asbestos lined suit with the enhanced BS repellent addon.
And, to all y’all who’re gonna burn up because you didn’t get a good suit:
HA! HA!
-N. Muntz
Another Reagan mistake.
Those treading water and twisting in the wind have the same opportunities as any other Americans to start businesses or otherwise improve their financial situations. The vast majority of wealthy Americans alive today made it on their own, they did not inherit it.
That times are difficult for some is not an indictment of the economy, either. Throughout history times have been difficult for the vast majority. The concept of a “middle class,” like the idea of “retirement” is a relatively new phenomenon. Indeed, the opportunity (not the guarantee) of a chance at a better life is what drove most immigrants from the Old World to the New, as there was little or no upward mobility in the highly structured societies of Europe. That opportunity, not guarantee, is still alive and well.
Want to fix the “Americans don’t save enough” problem? Easy. Change government policy to tax work and investment much less and consumption more. Allow those willing to bust butt to earn, save, and invest the fruits of their own labor, not be forced to turn over a large proportion to the government to be redistributed to those who won’t bust butt.
Watch the informative DVD know as The Money Masters-it really explains our problem; can explain the solution better than I can (articulate).
Yup.
What I thought was incredibly funny was immediately after the election, the press went overnight from beating the economy down to drumming it up. It was so transparent that it was laughable. Still, most people wouldn't notice it unless it was pointed out to them. I recall several conversations around the time, where I did exactly that, and you could almost hear the scales falling off of eyes, because it was so blatant, once folks were tuned into it.
How embarrassing, I slipped a digit. Thanks for catching that. Now, I better go review my checkbook ledger.
It happens, anytime I get into dividing by 9 digits or more I usually double check or even triple check if I do not have a spreadsheet doing the calculations for me.
More good news:
Ailing lender’s checks bounce; homeowners’ taxes left unpaid (Baltimore Sun)
Checks sent out by the troubled American Home Mortgage Investment Corp. to pay the property taxes of more than 70 homeowners in the Baltimore metropolitan area have bounced,
http://www.libertypost.org/cgi-bin/readart.cgi?ArtNum=200218&Disp=3#C3
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