Dow at Record High! We Rock! Say it with me…U! S! A!….U! S! A!
Our economy is like the US hockey team……or not…
“So the health is the US corporations is becoming completely decoupled from that of the US economy, which is a frankly new development. That may or may not be a good thing (it certainly is for the investor class), but it is worth flagging, as it is likely to have far reaching political consequences, given US corporations’ influence on domestic US politics. The interests of US corporations and US citizens have never been completely aligned, but at least they were still falling somewhat within the same community. It may no longer be the case at all.
Which is worth pondering.”
It’s worth pondering that 2/3 of GDP consists of consumer spending. Until now, consumer spending has been kept afloat with credit backed by home equity. Once consumer spending slows down even a little, all the other corporations start sliding downhill. If retail has a sucky Christmas, the recession is probably under way.
… and Christmas inventory is already ordered, so stores have already placed their bets on the economy.
And there are 30 more days in October and the Republicans are in charge. October and Republicans usually means a bumpy ride.
Yay!!! Let’s take our $1.80 and run to Canada and buy a tall cup of Starsux! What, we can’t? Our dollar can’t get enough looneys to buy a cup of coffee? Damn.
You know where I stand on this J, so long as the dollar can’t even wipe my arse…and I believe you are right there with me (not wiping my arse, in case you needed that clarification).
The dollar is down because of the Bush deficits. On technical grounds the Fed should have been raising interest rates to protect the dollar. But they lowered them instead to protect Bush and the Republicans. The lower interest rates will keep the credit bubble partly inflated until the election.
No argument from me, anon, for the most part. “Irrational exuberance” started a while ago. NO, I am NOT saying it is Clinton’s fault, that is not my M.O. I am saying it is the fault of policy wonks seeing the short term and ignoring the long term. That is something that this administration is absolutely guilty of as well.
The depression of interest rates started a looonnnggg time ago, paused a while ago, and just recently resumed a downward movement. Add to that the tax cuts supported by huge deficits, well, there is your formula for dollar disaster. It’s no secret that I think the methods used to acheive economic goals of this administration are possibly the most bizarre I have ever witnessed.
On the interest rates of late, I think this was seen as a better alternative to what would have amounted to multi-billion dollar parachutes to avoid monumental collapses from what amounted to the unethical ARM craze. Now that ARMs are pretty much recognized as a poison pill in this housing market, the lower rates will give people an opportunity to hop over to the safer, although more expensive pre-ARM adjustment, fixed-rate option. Once some policy wonk(s) determine those conversions have taken the in-danger-of-foreclosure numbers down to some “acceptable” number (not that I personally think anything greater than zero is considered acceptable), then you will see a levelling and then rise of rates. Of course, the bond market has a daily say in all of this, too, but not as much as the pattern influence if the FED’s itch any given day.
The only exception will be deflation, then a-lower they will go as the FED will panic.
It’s no secret that I think the methods used to acheive economic goals of this administration are possibly the most bizarre I have ever witnessed.
You aren’t still stuck on the idea that Bush has the nation’s best interests at heart, are you?
Once you understand that the Bush administration just represents a giant raid on the US Treasury, their economic methods will make much more sense to you.
There are only two possible defenses for the Bush economic policy:
1. Trickle-down will work eventually, or
2. All money rightfully belongs to the rich anyway.
Gaah. I didn’t think I would have to clarify my point, but my intention of the word “bizarre” was in no way complimentary to the Bush administration. Either I really missed you being snarky, or you missed my entire point.
The entire support-tax-cuts with huge-deficits has me doing a major “WTF!”
Hmm…I am re-reading your comment and I am thinking I missed your snark.
Say it with me! G.L.O.B.A.L.I.Z.A.T.I.O.N.
The US stock exchanges (and thus our market) are diminishing in importance (largely due to an intrusive regulatory regime) and there is not much room to go lower on interest rates – even as the dollar continues to fall. Eventually we will need higher rates to attract foreigners to hold our debt. That very financing vehicle could lead to even more forclosures as ARM’s reset to the higher rates. Ouch.
So why exactly would anyone want to be the next President? It does not look good for a soft landing.
You got that right. It is like they are fighting for the right to stand in front of the fan with the shit just about ready to hit.
If ‘trickle down’ works where are my drops?
Water (and shit) run downhill,ergo: weath must run uphill? It’s as good an econ. theory as any.