Posted on 04/28/2007 2:32:45 PM PDT by Sleeping Beauty
All of you seem to be on top of this.
It sound to me like you know how to take care of your money just fine. I don’t see interest rates rising. It would absolutely destroy the housing sector which would kill the financial sector.
Much of the money spent in this economy now is government money (borrowed from China). We’ve already depleted most of the equity held by American home owners through second mortgages and refis (the low interest shell game).
There’s going to be some belt-tightening (recession) — but we are in some uncharted territory, as well, with the weakest dollar (and highest debt) in our history. And the truth is, Iran is hurting us badly with its oil bourse (which you don’t hear much about in the MSN).
I never really thought we would allow Iran to kill the petrodollar.
Basically, I think this whole thing makes the case that not only is it our desire to have a fiscal conservative in office (we’ve had just the opposite) but I don’t think the country can survive without one.
Meanwhile, in the stock markets — I would pay attention to individual companies who have innovative products that are popular exports. Apple is a good example, entertainment (movies, music, software), certain pharmaceuticals, etc.
The price of imported cars is going to skyrocket, but that doesn’t mean our automakers are going to make “awesome” profits. After all, nobody exports US made vehicles. They are too piggy and dirty for the rest of the world.
I would like to see the words “BUY AMERICAN” mean something. I drive an American made car. On purpose. If we spent a few years being patriotic with our pocketbooks — we could really turn this trend around.
That’s my opinion, anyway. Thanks for an enjoyable dicussion.
Money never just lies around. Unless it's under your mattress, it's always either being spent or invested.
That was written by "Porterville" in post 7.
That was written by "Porterville" in post 7.
I settled in Bremerton in 1992 after I retired from the Army. We left the People's Republic for my home in Alabama last summer after my wife retired. We are happy now in Dixie!!! That said, it took me only a short time to never read the PI or the Seattle Red Times again. I bought that garbage for about a year, then never bought one again. Thankfully the Internet came along so that I could actually get the news again!
Good well balanced post. Unfortunately there is a large contingent around who seem dead set on saying, “Everything’s fine. Everything’s fine. Everything’s fine...” and they’ve got the numbers to prove it. What is unfortunate, many, many people seem to know everything is somewhat less than fine from their own lives.
Best regards,
My theory is that people are fleeing the so called blue States in droves, and the folks who are staying behind for all the free Government goodies cannot afford to actually buy a house.
Yep. I can see it.
Your theory is not entirely correct. If people are fleeing, then shouldn’t the price of homes drop? In fact, the prices have remained stable at record levels. NYC continues to boom as does SF and LA. For those with a means to finance it, life has never been better.
Those people fleeing are those with mediocre skill sets who can’t tap into the big buck jobs.
Bump and Ping
The Seattle Times had the same story but with a slightly different doom and gloom title. You had to turn the page and get about 23 paragraphs into the story before it mentioned the DOW being at an all time high because of company earnings, mostly in durable goods.
Rush said this would happen - They already had these “It may be OK on Wall Street but not on Main Street” stories written, ready to go to press as soon as the Dow broke 13,000
If Democrats were in Office it would be called the best Economy of all time.
So all Americans used their money wrongly?... so where is all this mispent money?
Well, we spent more than we have, both as individuals and as a Nation on stuff we really don't need. And rather than buying from ourselves and from friends, we sent our dollars to the places like the middle east and China.
China has $1,000,000,0000,0000 (1 trillion) of U.S. dollars in their foreign reserve account.
Meanwhile, back at the ranch, we're $10 Trillion in debt ($10,000,000,000,000) - much of that owed to foreigners - many of whom are not our best buds..
No.
Not at all.
Inflation has been 2-3% since 2001, and six years at 1.03 is NOT the gain from 7000 to 13,000. Look at the long-term percent growth since 1994 (when “Clinton’s best economy ever” began as soon as Newt took over the House), and you’ll see THAT rise as the actual measure of long-term. The “bubble” of high expectations pushed DOW, then S&P, then the internet stocks way past their true value, but since about April 1998, both the DOW and S&P 500 were essentially flat until Gore’s recession ended about a year after 911.
It’s absolutely incorrect to reference a “7500 DOW” in terms of “constant dollars.”
It makes a lot of sense. But instead, America will continue to be up for sale on the international markets. Our dollars flow overseas for trinkets and gadgets, and come back to buy up real estate and American equities. Those selling now benefit in the short-term (20 to 40 years).
If Democrats were in Office it would be called the best Economy of all time.
Exactly right - But we all know this is coming - Meaning the RNC/WH. They have to be on the offensive on these issues. Take the robust economy to the DEMs. Make them run away from this success. Stop being shy about touting our success economically and more importantly in the WOT!
The me and now society holds both hands out willing to grab anything they can get away with. Concern for future generations doesn’t seem to be carry much weight. These days citizenship is appears to be gravity free and never enters the thought process.
And we haven’t been asked to sacrifice much yet, except for the price of a gallon of gasoline.
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