who killed the economy?!?!

[bumpin buick 5,000+ posts]

Global economy is bullshit, and I hate it. I hate having to deal with the Chinese, because as a business student, the have a totally different set of ethics and way of doing things. I have seen it first hand, and they don't mind pissing on your head and calling it rain. I believe that America can have a self sufficient economy, and only rely on certain European countries that can be trusted, and go about doing things the right way. Furthermore, reliance on foreign oil is also killing us...I'm down with the offshore drilling and open up our reserves for the next few years until we can sufficiently get hydrogen cars on the market.
As for the American blue collar worker, I truly feel sorry for them. They are getting ****ed as a result of good old fashioned greed. However, the high minimum wage is really a problem as well, and I know people don't want to hear that, but would you rather get paid less money or nothing at all.

Oh, and how could I forget...Labor Unions...look at what GM is having to go through as a result of strong unions.

PS: this is one of the best topics I have seen on this forum in a long time.

Cause weve never done that in the past to the Chinese //content.invisioncic.com/y282845/emoticons/laugh.gif.48439b2acf2cfca21620f01e7f77d1e4.gif

 

[Flipx99 5,000+ posts]

Cause weve never done that in the past to the Chinese //content.invisioncic.com/y282845/emoticons/laugh.gif.48439b2acf2cfca21620f01e7f77d1e4.gif

Nooooooooo. We gave them valuable, high-paying jobs constructing railroads.

 

[mokedaddy 5,000+ posts]

But by "definition" we are not in a recession; although everything going on around you and I would tell/say otherwise.
I agree; the two party's have a totally different fiscal/monetary policy and the current admin has shown their irresponsibility with both. Typically you would think the gov't would have little to do with the status of the economy; but as I have said before there were several instances in which their decisions and actions have affected things; lowering the Fed "target" rate, War, threat of war with Iran etc...my point being is they may not have themselves directly, but their actions and policy's have, which for some reason people don't realize or want to realize.

I worry about myself as well; but what you don't realize is that who is in office directly affects your life; you may not feel it right away; i.e Patriot Act

Actually both parties are very similar in their fiscal policies. They just tell you they arent. And nothing the government has done is what has led us to where we are. You say policy and this and that but have yet to give one example of that being even remotely true.

And the Patriot act doesnt effect me. Act right and you have nothing to worry about. You and your conspiracy theories are what keep you up at night.

 

[richierich75 10+ year member]

Partly correct Tiger - when/how/who did this all begin....
Let's see; it all began when Alan Greenspan and Company lowered the federal interest rate; which was a calculated move in an attempt to get people to borrow more money; how, by refinancing their home loans pulling cash out and buying new luxury items in an attempt to "stimulate" the economy; only problem was that the greedy lenders got involved and started giving everyone and their brother loans they couldn't afford; but it was all gravy for Bush cause home ownership was at its highest level; what they failed to grasp was the old saying "What goes up, must come down." So in summary the when/how/who can be summed up in by saying this - the current administration fvcked this whole thing up; please notice that I did not say Bush is the only one responsible; his entire administration is ultimately to blame for how things are.

Actually both parties are very similar in their fiscal policies. They just tell you they arent. And nothing the government has done is what has led us to where we are. You say policy and this and that but have yet to give one example of that being even remotely true.
And the Patriot act doesnt effect me. Act right and you have nothing to worry about. You and your conspiracy theories are what keep you up at night.

http://www.earth-policy.org/Updates/Update44.htm

How do these policy-induced changes in real interest rates affect the economy?Changes in real interest rates affect the public's demand for goods and services mainly by altering borrowing costs, the availability of bank loans, the wealth of households, and foreign exchange rates.

For example, a decrease in real interest rates lowers the cost of borrowing; that leads businesses to increase investment spending, and it leads households to buy durable goods, such as autos and new homes.

In the short run, lower real interest rates in the U.S. also tend to reduce the foreign exchange value of the dollar, which lowers the prices of the U.S.-produced goods we sell abroad and raises the prices we pay for foreign-produced goods. This leads to higher aggregate spending on goods and services produced in the U.S.

The increase in aggregate demand for the economy's output through these different channels leads firms to raise production and employment, which in turn increases business spending on capital goods even further by making greater demands on existing factory capacity. It also boosts consumption further because of the income gains that result from the higher level of economic output.

How does monetary policy affect inflation?Wages and prices will begin to rise at faster rates if monetary policy stimulates aggregate demand enough to push labor and capital markets beyond their long-run capacities. In fact, a monetary policy that persistently attempts to keep short-term real rates low will lead eventually to higher inflation and higher nominal interest rates, with no permanent increases in the growth of output or decreases in unemployment. As noted earlier, in the long run, output and employment cannot be set by monetary policy. In other words, while there is a trade-off between higher inflation and lower unemployment in the short run, the trade-off disappears in the long run.

Policy also affects inflation directly through people's expectations about future inflation. For example, suppose the Fed eases monetary policy. If consumers and businesspeople figure that will mean higher inflation in the future, they'll ask for bigger increases in wages and prices. That in itself will raise inflation without big changes in employment and output.

http://www.frbsf.org/publications/federalreserve/monetary/affect.html

FP: How does war spending exacerbate the economic downturn in the United States?

JS: To the extent that the war caused the price of oil to go up, and the fact that the war expenditures don’t stimulate the economy as much as domestic expenditures would have, the economy is weaker. The Fed has let forth more liquidity, which allows consumption to go up and savings to go closer to zero or negative. So, we have more of a mountain of debt in order to offset the negative effects of war spending, and that mountain of debt is now the problem we’re dealing with. There is a clear connection between the two. We’re spending money abroad that we could have spent at home.

FP: What’s your take on the Bear Stearns and Northern Rock bailouts? Would you have opposed them?

JS: No, but I’d make two points. One, given where we are, monetary policy is not going to reignite the economy. The only way monetary policy will reignite the economy is to reignite the housing bubble, and nobody wants that. So, we have to just admit that monetary policy is disengaged and all it’s doing now is preventing a further meltdown.

The Fed had no choice, in a sense. They did, however, have a choice of how they did it. And they did not do what they should have done, which is to minimize moral hazard. The shareholders of Bear Stearns walk off with $1.2 billion, and American taxpayers are now at risk. I think that’s unconscionable.

http://www.foreignpolicy.com/story/cms.php?story_id=4246

Do you need me to find more for you or do you want to start searching and educating yourself.

Also, you have failed to bring to anyone's attention as to what makes McCain a better candidate than Obama. The biggest thing I see hurting McCain is his party affiliation - if he was a Dem, he would win hands down. Albeit, is the most liberal conservative the republican party has seen; he is still a republican and once he is in office he, as I am sure Obama, will have "favors" to pay back to his consituents - i.e. - continuing the war in Iraq; War with Iran; keeping the tax burden on middle american's etc etc...

So you have no problem with warrentless wiretapping; even though it is in direct violation of the Fourth Amendment; it has been proven that several of the warrantless wiretaps had no relation to terrorist acts but were done for other alterior motives

 

[duece212 5,000+ posts]

So you have no problem with warrentless wiretapping; even though it is in direct violation of the Fourth Amendment; it has been proven that several of the warrantless wiretaps had no relation to terrorist acts but were done for other alterior motives

Personally I could give a shit less if my phones are tapped and the gov hears me ordering my pizza.

The only thing that scares me is the infringement creeping and further impacting our liberties.

 

[richierich75 10+ year member]

Personally I could give a shit less if my phones are tapped and the gov hears me ordering my pizza.
The only thing that scares me is the infringement creeping and further impacting our liberties.

and that is were it all began...

 

[RangerMan Premium Member]

But by "definition" we are not in a recession

It is important to understand that recessions cannot be found to exist until after they have already started.

Simply put, we are in a recession.

 

[richierich75 10+ year member]

It is important to understand that recessions cannot be found to exist until after they have already started.
Simply put, we are in a recession.

don't know who you are; but I like the way you think //content.invisioncic.com/y282845/emoticons/wink.gif.608e3ea05f1a9f98611af0861652f8fb.gif

but then that is saying those in these positions can not see the forest through all the trees; are these then really the people we want in place making such decisions so recklessly??

 

[Buck 5,000+ posts]

i killed the economy

 

[RangerMan Premium Member]

don't know who you are; but I like the way you think //content.invisioncic.com/y282845/emoticons/wink.gif.608e3ea05f1a9f98611af0861652f8fb.gif
but then that is saying those in these positions can not see the forest through all the trees; are these then really the people we want in place making such decisions so recklessly??

Just a business major...

Didn't think all these econ classes had paid off, but I guess I did learn a few things.

 

[Banana Balls 5,000+ posts]

Don't wealthy people usually feel the impact of a recession as well?

 

[RangerMan Premium Member]

Don't wealthy people usually feel the impact of a recession as well?

Haha, yes. In their portfolios.

 

[Banana Balls 5,000+ posts]

Haha, yes. In their portfolios.

I don't think we are in a recession then.

 

[richierich75 10+ year member]

Don't wealthy people usually feel the impact of a recession as well?

Haha, yes. In their portfolios.

I don't think we are in a recession then.

yes as Ranger said, but typically no cause they will have more disposal income -but just because you have yet to be impacted or affected does not mean the US is not in a recession; I have not been impacted to a high degree, but i can see what is going on and I hate to say it, but yes we are.

 

[RangerMan Premium Member]

I don't think we are in a recession then.

Ummm...have you seen what has been happening pertaining to personal finance?