Quote:
Originally Posted by mizpeh
I usually don't read the political or economic threads so I may not have read what you wrote months ago. The last economic thread I read, CC1 was calling doom and gloom folks....alarmists.
Is this what your countdown is pointing to?
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No the countdown is for”it” lol.
I would agree with CC1, IF a person’s view of gloom were confined to the stock market correction. Months ago, I said that run to 14,000 was artificial and that stability was around 10,300-10,500 and that was before the current round of debacles.
Some believe the world revolves around the US stock market when in fact it is a tiny, and often disconnected part of the world economy.
China became the first nation in history to pass one trillion in foreign reserves last year, over $750,000,000,000 of that US dollars.
While we have been busy consuming (leading to our unbelievable trade deficient) other have been purchasing our capital assets (means to generate Future wealth).
Shortly after 2000 the stock market lost one and half trillion in value, this was made up within a few years by the American consumer shifting into high gear, real estate prices artificially rising and individuals taking out home equity loans (I personally am aware of those with $75,000 revolving lines of credit with their homes for collateral, stupidity has no limits) In Texas until a few years ago it was actually illegal (against the constitution) to take out a home equity loan. Following a state constitutional amendment Billions were pumped into the consumer economy.
The banking industry gave out billions to those with shaky credit just to improve their bottom line, pay their CEOs obscene bonuses, and now that their house of cards is falling around them, they want a government bailout (taxpayer money)
The credit card industry has done the same thing. Even having the bankruptcy law changed so those who they extended thousands in credit, and who had dubious ability to repay could not have them discharged.
The major shift of corporate American from defined benefit plans to employee funded 401k plans over the past few decades, led to a great infusion to the stock market, what happens in 18 years or so when the peak of the boomer generation BY LAW must start withdrawing those funds (btw the first of the boomers hit retirement age last year so it will start soonerth). Note: those who retained defined benefit plans such as GMAC et al were not forced to collect the billions they should have, so either when the time comes they renege on their agreements with their retired employees, declare bankruptcy, or seek a government (taxpayer) bailout for their artificially inflated bottom line all these years.
The price of gas is not a reflection of drilling, exploration, or refining capacity. Most economists either won’t mention or have not figured out the true culprit is the fall of the US dollar. The majority of our oil is imported so that is where it is felt first. The sad truth is while our Dow was making its historic high climb the value of the dollar was falling to all time lows abroad. My Canadian friends can correct me but I believe it is the first time in history that the Canadian dollar is worth more than the American.
These are once again only a FEW things I have skimmed, all which will lead to the inevitable conflagration.
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