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Old 09-02-2015, 08:44 PM
 
Location: Paranoid State
13,044 posts, read 13,784,134 times
Reputation: 15837

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Quote:
Originally Posted by richrf View Post
Most of which went to the top 1% (factually and undisputed). Bankers are not refined business men. They are thugs and reached their lofty heights by ruthlessly gathering wealth.

The Feds make it easy for them. Consider a game of Monopoly where everyone starts off with $$500 and the Banker just decides to give one player $1,000,000. Who do you think wins and what do you think happens to everyone else?
LOL! That is sooooo funny!

Time for the aluminum foil hats.

 
Old 09-02-2015, 08:53 PM
 
Location: Paranoid State
13,044 posts, read 13,784,134 times
Reputation: 15837
In Silicon Valley, you can't get an admin (secretary) to show up for less than $60K. While it is an extreme case, my daughter's high school friend received a job offer of $120K to NOT go to Harvard but instead to go to work for Facebook.

Top technical talent receive huge retention bonuses.

Some top techies now have agents. Agents! As if they were in show business - but instead, the agents screen all the job offers.

Real estate is even more nuts. A house I sold mid-1990s for $600K is now on the market for $2.8 million. Want to live in Palo Alto? $5 Million buys you a house you'd be ashamed to let your family know you own. Its a tear-down.
 
Old 09-02-2015, 09:19 PM
 
48,505 posts, read 96,496,294 times
Reputation: 18301
if you look the economy is just struggling along. All the indexes show this the slowest recover of modern recessions. When the US dollar appreciates that means that loans and things priced in dollars have to be paid in dollars value. With many currency dropping that mean high cost in local currency. Low rates and QE liquidity have meant a lot of borrowing by emerging markets that now have to be paid back in dollar values of currency. US debt is reduced by currency but overall the amount has grown so it will also return to be dealt with in time. In the economy as well has markets these are not normal times but controlled by FED policies. We have never been here before which makes facing consequences scary as we se with market react to every event or rumor even. When FED speaks everyone listens like no other leader in the world because of this.
 
Old 09-02-2015, 09:23 PM
 
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,102 posts, read 80,155,784 times
Reputation: 56918
Quote:
Originally Posted by GeoffD View Post
You do realize that only 6% of the working population makes the $118,500 to max out their Social Security contribution? If you walk around Microsoft, you won't find many people other than new hires and interns who don't max out their Social Security contribution. Top-6% is not "solid middle class".

And for the record, I maxed out my Social Security in my 5th year of working. I've always worked in office buildings filled with people who get compensated at Microsoft levels. That's 5%-ers. My office buildings have always been in regions where there were a lot of other 5%-ers so it doesn't feel like you're a 5%er since that is the economic condition of everybody you know. Boston. New York. DC. San Francisco. Seattle. They're all like that.
Microsoft has a lot of employees that are making a lot less than $118,00, or even $50,000, and not interns or new hires. One day on a bus a young woman ran into a guy she had gone to high school with and asked where he worked. Microsoft. She asked what he does there. Dishwasher in the cafeteria. It was cute how she tried real hard not to laugh. As for your 5% claim, $118,000 is not a 5%er when a fixer 30 year old house costs $700,000. According to the NY Times in 2012 and other sources I found 118,000 was in the top 15-20%, top 5 is at over $166,000.

How close are you to the top 1%? - CNNMoney
 
Old 09-02-2015, 09:31 PM
 
Location: Wisconsin
2,201 posts, read 1,863,107 times
Reputation: 1375
Prior to a falling off a cliff into la la land. There always follows a illusionary bull market as if your a set up by a scammer ( God?) Come on God we will behave! ...promise!!! This month expect the largest DOW decline in history surpassing a trillion plus!!!
 
Old 09-02-2015, 10:48 PM
 
Location: Oceania
8,610 posts, read 7,844,822 times
Reputation: 8318
Quote:
Originally Posted by k374 View Post
My evidence is anecdotal based on observations of how people are spending money in the real world. That is all I care about. There is a huge level of consumer optimism. The real estate run up and low interest rates has caused a huge surge in spending, I see it with my own eyes. I know so many people who have bought ridiculously expensive cars of late - Audis, BMWs, Mercedes... just a few years ago these people were not doing so well. Now they are.

In my last job I used to work in the same building as a mortgage company - the agents there are all driving brand new German exotics. The entire parking lot is filled with them. And these are just young people - in their 30s. Even if these were acquired with debt it signifies that people have optimism in the economy.

My cousin is only 25 years old and is a realtor in westside Southern California, she is selling homes in the $1.5 million range with ease and raking in the dough! People are just flush with cash, that is the observation regardless of what the indices say.

Your observations are to how goods are trading hands. You have no idea as to how they are being financed. You do know it's basically against the law to pay cash for such things, right? The government believes it to be. It's either checkbook or credit. I prefer the former.

Debt is the Achilles heel of this nation though none seem to learn. The USA will be at least $20T in debt by this time next year. What is the debt of those unestablished 30 somethings buying $1.5M homes and ridiculously expensive cars? What happens when the federal reserve raises interest rates? Free money doesn't last long, especially when looking back on the fact the federal reserve was printing $85B a month in the name of Quantitative Easing. If Googling the term it can always be traced back to this preface ... an unconventional form of monetary policy where a Central Bank creates new money electronically to buy financial assets. It is supposed to put an economy back on track but someone is making a killing somewhere. We are liquidating the country as one would personal holdings to stay afloat. The really wrong aspect is the average American Joe Q. Public has no say whatsoever but is forced to live the aftermath. Quantitative Easing is designed, in part, to keep interest rates artificially low. They quit creating money a year ago and it is going to either be more QE or raise in interest rates to keep it going much longer. An artificial economy doesn't last very long; we have been living such for many years.

Flush with physical cash, big loans or inflated salaries?
When Detroit starts to build cars again our economy might be stirring back to life.
 
Old 09-02-2015, 10:52 PM
 
48,505 posts, read 96,496,294 times
Reputation: 18301
No law; its just that sellers like not having to handle cash but instant transfers now days. Bartering gave way to money; money gave way to check and now electronic transfers are becoming the norm.
 
Old 09-03-2015, 12:13 PM
 
Location: NH/UT/WA
283 posts, read 257,019 times
Reputation: 437
Quote:
Originally Posted by rruff View Post
Can you provide evidence for it? After all, it's your thread.

Incomes and production are still depressed, debt levels high. The opposite of investment is still happening. The strong US$ means that exports are too expensive, and imports are cheap. We are continuing our role as the absorber of the world's excess production.

"The income of the median U.S. household was $51,900 in 2013, the Census Bureau reported Tuesday. That's essentially unchanged from 2012, after adjusting for inflation, and is 8 percent lower than in 2007, before the recession began."

"The US trade deficit exploded in March to $51.4 billion, a six-year high. This was much more than the $41.7 billion economists had expected, according to Bloomberg. It's the largest deficit since October 2008. The deficit rose by 43.1%, the largest in 18 years, Bloomberg noted.May 5, 2015"
Agree somewhat with first two points, but the reason the trade deficit exploded in march was because the port strike in LA backed up container ships for months, the last trade reading has the deficit at a 5 month low:
Shrinking Trade Gap Shows Economy's Underlying Strength - DailyFinance
 
Old 09-03-2015, 12:27 PM
 
Location: NH/UT/WA
283 posts, read 257,019 times
Reputation: 437
Quote:
Originally Posted by armory View Post
Your observations are to how goods are trading hands. You have no idea as to how they are being financed. You do know it's basically against the law to pay cash for such things, right? The government believes it to be. It's either checkbook or credit. I prefer the former.

Debt is the Achilles heel of this nation though none seem to learn. The USA will be at least $20T in debt by this time next year. What is the debt of those unestablished 30 somethings buying $1.5M homes and ridiculously expensive cars? What happens when the federal reserve raises interest rates? Free money doesn't last long, especially when looking back on the fact the federal reserve was printing $85B a month in the name of Quantitative Easing. If Googling the term it can always be traced back to this preface ... an unconventional form of monetary policy where a Central Bank creates new money electronically to buy financial assets. It is supposed to put an economy back on track but someone is making a killing somewhere. We are liquidating the country as one would personal holdings to stay afloat. The really wrong aspect is the average American Joe Q. Public has no say whatsoever but is forced to live the aftermath. Quantitative Easing is designed, in part, to keep interest rates artificially low. They quit creating money a year ago and it is going to either be more QE or raise in interest rates to keep it going much longer. An artificial economy doesn't last very long; we have been living such for many years.

Flush with physical cash, big loans or inflated salaries?
When Detroit starts to build cars again our economy might be stirring back to life.
Total Public and private Debt to GDP, 2014(source: mcKinsey) for developed economies:

400% Japan
390% Ireland
382% Singapore
358% Portugal
327% Belgium
325% Netherlands
317% Greece
313% Spain
302% Denmark
290% Sweden
280% France
259% Italy
252% UK
244% Norway
238% Finland
233% USA
231% South Korea
225% Austria
221% Canada
215% Australia
188% Germany

Public debt to GDP (McKinsey):
234% Japan
183% Greece
148% Portugal
139% Italy
135% Belgium
132% Spain
115% Ireland
105% Singapore
104% France
92% UK
89% USA
87% Austria
83% Netherlands
80% Germany
70% Canada
60% Denmark
44% South Korea
42% Sweden
34% Norway
31% Australia

USA is better off than most western economies.
 
Old 09-03-2015, 12:27 PM
 
1,615 posts, read 1,629,517 times
Reputation: 2714
Quote:
Originally Posted by Happiness-is-close View Post
Hiring is down quite noticeably from last year and incomes for most in America are completely stagnant. The unemployment rate in California, where the op is from, is still sky high.

How is this economy better than ever?
Am with you on this. Ask those who have lost jobs,running out of unemployment,losing their homes, borrowing out of savings and retirement programs and in more debt today than ever, and ask the poor who are still poor how good they feel. Think the govt has a way to pull one over on the sheep and lambs and it works every time. Those who live in their ivory towers will always spread the news and ring the bells that all is well in the kingdom!
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