Stop obsessing about the economy, you’re scaring the children”

[Dr. Zhivodka]

I have been in the DFW metroplex area for a week or so and this place is still almost Boom City still. The weather of course is like a fucking blast furnace. But business is huming.

The bad stuff is where you fid it.

No lecture needed on how "we just don't get it."

 

[Dr. Zhivodka]

Any finanacial seer here ever eaten Poke Salad? Because there was no meat in the barn or no vegetables in the field?

 

[makloda]

Quote from Debaser82:The campaign began in June and is now appearing on more than 1,000 billboards across America

Reminds me of

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[gastropod]

Quote from Mike Morrison:

Really?...So no one is going to buy an iPod are they? Haha. You guys are full fledged nutjobs if you really believe that.

"There are none so blind as those who will not see" - John Heywood

 

[countryBoy]

Quote from Maverickz:

I still don't understand why the banks were bailed out in the first place. IF the homeowners were bailed out instead the assets would have never turned toxic to begin with, the market wouldn't have been flooded with foreclosed homes and things wouldn't have ever even gotten this bad.

If the government started sending 100K checks to homeowners because they weren't paying their mortgage, NOBODY would pay their mortgage. YOu'd have to bail out 100% of residential mortgages.

Car loans and credit cards would be next.

 

[Scataphagos]

Quote from gastropod:

"There are none so blind as those who will not see" - John Heywood

There are many contributors to our economic mess, including (partial list)...

1. Government deficit spending

2. Government encouraging (even MANDATING) "irresponsible use of credit" for political gain.

3. Consumers' irresponsible use of credit.... encouraged by government direction

4. Abuse of the financial system by institutions... reckless bets on derivatives, usurious interest rates on credit cards

5. Lack of proper supervision of the financial system

6. Theft of Social Security Trust assets by Congress.

7. Bringing competition into the market place from low-labor cost countries...

More, of course... A money-pump rally to bolster consumer and investor sentiment aint' gonna fix it.

 

[Mike Morrison]

Meanwhile in the real world new home sales up 11% and inventory at 11 year lows.

 

[Scataphagos]

Quote from Mike Morrison:

Meanwhile in the real world new home sales up 11% and inventory at 11 year lows.

Oh come on. How stupid do you think ETers are?

New home sales could be up 11% over depressed levels... but inventory at 11 year lows?

 

[drsteph]

Quote from Bolts:

There is still too much of a widespread perception that consumerism (impulse spending on stupid crap products that generally depreciate rapidly) will dig us out of this hole. Before the economy really starts to improve, we will have to see more wealth change hands to a more intelligent investor class, who are better at putting their money to work for themselves. This will inevitably happen through market forces. But it is difficult to say how long it will take. I don't see this happening soon.

Concur, but think:

A) Because of active intervention, these rebound cycles will continue and drag things out longer than all of us collectively expect.

B) 'Intelligent' Investor class is not necessarily intelligent - its the lucky survivors who weather the storm and avoid the asset busts that are to follow. A number of people here have said it - too much money out there following old patterns. More asset and credit destruction to follow, combined with increased taxation, will decrease the overall pool of liquid money (private) available for private and public investment. People still think that real estate is gonna rise exceeding inflation after we work through this overhang. That's fine if its your opinion, but the downside is another leveraged bet that isn't so leveraged (20% down, anyone?) Didn't anyone learn after the last drawdown? A 5 year b.e. is fine, but are you sure you will even get to that point if we don't double dip within that timeframe?

 

[Mike Morrison]

Quote from Scataphagos:

Oh come on. How stupid do you think ETers are?

Um, pretty stupid.

New home sales could be up 11% over depressed levels... but inventory at 11 year lows?

You really need a news feed. Sorry I'm not momma go look it up.