Posted on 05/05/2011 10:01:15 AM PDT by Free Vulcan
NEWPORT BEACH, Calif. (MarketWatch) — The evidence of a double-dipping housing market and economy are becoming undeniable, even to those who cling perilously to the notion that government intervention has been a salve instead of a poison.
The main evidence presented on the part of the “permabulls” of a healing economy is that corporate earnings have been good. However, S&P 500 earnings from multinational corporations have been significantly boosted by a U.S. dollar DXY +1.28% that has lost nearly 15% of its value in the past 12 months. So earnings look great, but they don’t buy you very much, while small-cap domestic businesses suffer under the scourges of inflation and slow growth.
(Excerpt) Read more at marketwatch.com ...
Hyperegulation and hypertaxation kills the little guy trying to create an industry and jobs.
Its also how his larger competitors, use regulation to strangle competition. Its called fascism. There’s too much of it to grow the country.
We have never come out of the recession.. how can it double dip?
When a big corporation in a city goes belly up it makes a big splash. Theoretically there are options for the laid off workers.
When small companies do so, it is often in a smaller community where alternate job opportunities do not abound, and it leaves a huge problem.
However if I was the individual, large corporation or small- it would be tough to say the least.
The Communist propaganda from the Democrat Party tried to say we were in a recovery and that the Depression ended, but it never did. Millions are still out of work, bankruptcies are still at all time highs, 45 million people are in soup lines known as food stamps, etc.
“He grasps a point I don’t see being made much - economic conditions are killing small business, our job growth engine. “
He didn’t mention the REAL silent killer; businesses no longer have access to operating capital and the weak demands caused by cutting inventories are putting additional pressure on small business to order less for their shelves, driving up costs because of higher priced small orders, shredding profits or pricing them further out of the market by imports that are losing ground because of the weaker dollar and making layoffs even more common. Layoffs mean fewer jobs, less money, diminished buying power, lower demand for goods, less manufacturing, lower inventories...We’re forked.
Basically, the people who have been hanging on by a thread since barack was elected are dropping like flys.
I have a long-time neighbor who suddenly disappeared and abandoned their house. All the plumbing and two central airconditioning units were gone.
We have others in the neighborhood that stopped paying their mortgage, moved out, and they now rent out the place to some reprobates—but the “owners” don’t pay the bank!
Needless to say, the property values are dropping like Courtney Love at a pill popping party.
I fully deny we are in a double dip
We never came out of the 1st dip for there to be a second dip
A double dip is not yet undeniable, but it is closer to reality. Thankfully Bernanke has kept a steady hand on monetary policy.
bm
Question: If the dollar loses 20% of its buying power while sales bring in 10% more dollars, have you made or lost money?
Question: As a percent of income, what has a greater impact on an average person’s spending power, rapidly inflating food and fuel or cheap DVD players from China?
TRIPLE DIP DEPRESSION... and I damn well know it is the truth.
LLS
Been in business for 37 years and my businesses and all of my friends businesses are being destroyed.
LLS
>>We have never come out of the recession.. how can it double dip?<<
You and me both: The emperor has no clothes. I’m tired of the repeated claims that he is not naked.
I think we dead-catted from crap to just bad and are now going back down to crap and heading toward hell-in-a-handbasket.
“Been in business for 37 years and my businesses and all of my friends businesses are being destroyed.”
Can you add more detail? Very interested to hear what you have to say.
It is possible to have a lousy economy but not be officially in recession. 74% of S+P companies have reported earnings higher than forecasted for the last quarter. It’s the small companies that are having trouble.
We have had positive (though low) GDP growth for quite some time (7 quarters, IIRC), putting us officially out of recession. We may stay in positive GDP growth and still have very bad times.
The definition of recession requires two consecutive quarters of negative GDP growth. So we are at least 6 months away from officially re-entering recession.
All of this has little to do with the real world economy as we perceive it daily (I get the Captain Obvious Award!). I expect these conditions to continue for 7-10 years. The classic recession model does not reflect the reality of this economy.
The FED is actually doing the only thing that can be done to keep us out of a very painful depression. The PTB are going to stay that course to avoid or delay social unrest. I don’t know if that’s the best policy, but that doesn’t matter, it IS the policy.
Prepare accordingly, and good luck.
If We the People do not put a stop to it, “Hyperegulation and hypertaxation” will kill the USA!
WAKE UP AMERICA!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.