Posted on 06/20/2002 4:13:17 PM PDT by DeaconBenjamin
Edited on 04/13/2004 2:16:31 AM PDT by Jim Robinson. [history]
May 16 was a day that customers of Bank f
(Excerpt) Read more at businessweek.com ...
There's way to much bad news out there. Allow me to piss everyone off with my rampant pessimism, I'm in a bad mood today so please indulge me.
Oil Prices climbing, brings cost of everything up.
All steel becoming more expensive due to tariffs, brings cost of everything up.
Deficit spending by bloating government and war costs.
Tech market loses nearly 75% of it's value. This is a real figure, not one I made up.
Bankruptcy rate climing quickly, accounts receivable are assets you know.
Personal and government debt rising sharply.
Surplus already spent by our political whores on both sides of the aisle.
Government growing nearly out of control. Free market types have to love that, especially when we spend it on great American ideals such as paying multi-millionaire farm-ops not to grow food.
Ponder this. Every time the NASDAQ loses 15 points, it drops over 1%. Today it lost 2% of it's value.
I don't know much about economics but I know a little about finance. The fed keeps dropping rates but the lenders rates stay the same. No, there is no evil banking conspiracy. They can't afford to out bid each other because they're hurting. Some will fold.
Have I cheered anyone up yet.
I'm happy, It's almost Beer:30!
There is no good news out there: Business is operating at something like 70% capacity, so sales would have to pick up nearly 50% before capital expenditures are necessary. Yet consumers are deep in debt and have already spent most of the equity in their homes. So who's going to keep economy going? At 1.75%, Fed can't cut interest rates much further, and falling dollar means foreigners need HIGHER rates to entice them to keep their $$$ here. But if Greenspan raises rates, then housing market will collapse and millions of American families will find themselves "upside down" - mortgage more than the house is worth. They'll have to PAY to sell.
To paraphrase someone else on this thread -- buy gold, guns and pay down debt. Stocks and real estate won't be enticing for years - maybe a decade or more!
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