Economic forecasters: Outlook is murky for Charlotte's recovery......(CO article) (Jackson: credit rating, tax)
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More proof that Charlotte isn't in the "upswing" some have the delusions of.
Economic forecasters: Outlook is murky for Charlotte's recovery | CharlotteObserver.com & The Charlotte Observer Newspaper (http://www.charlotteobserver.com/2011/08/06/2509254/forecasts-turn-murky-for-local.html - broken link)
"Forecasting" is what causes much of our financial problems. People see this, slow down their spending, and then all the numbers look even worse, so people tighten up even more. Speculating, or acting on one's personal forecast beliefs, is what drives oil prices up and up. The price of oil has almost nothing to do with the actual cost of getting it out of the ground and to us.
There's very little in finance and the economy that we don't cause. It's not like the weather where we're responding to outside stimuli. We exist in an almost completely artificial economy, and we're feeling the negative effects of that right now.
I don't see how Charlotte lost its triple A credit rating. I mean if funds get low don't we just print more money to meet our needs? I can't see us ever defaulting.
The Observer again rolls out the same tired bankster economists who have consistently been wrong for the last 5 years yet they still give these guys airplay and acts as if they are credible. Yet despite this mutual admiration society, this particular article doesn't gloss over the issues as much, so that means, it's much worse than this article would let on. On that part I would agree.
Charlotte gets a bit of a reprieve however. They are going to tart up this city like a cheap Vegas street ***** over the next year so that we will have the appearance of looking good for the DNC convention. An example of this is that the city wants to move the Central Transit Center to some other place lest the TV cameras catch another riot, melee, whatever, taking place Oh and the county seems to have just "found" some tax money for uptown base ball stadium.
It won't be pretty when this bunch of clowns leave town however.
Well, if Mark Vitner says so, then we must be on the verge of the next golden age. Everything that somes out of that mans mouth originated on a magic 8-ball
What "upswing" do some have delusions of? I've seen zip on upswings... anywhere. It's a disaster out there. More lousy reporting from the Charlotte Disturber - what a terrible newspaper.
Seriously, the people commenting in the article are the last people you want to listen to... I mean "a one-in-three chance of sliding into another recession within a year". An economist for a bail-out bank. bwahaha - where do these people get this stuff?! "Murky"?! It's already a double dip - it's here.
In the great race to the bottom Charlotte is not leading the way in the US. Far from it... But these clowns that are supposed to be running the show. Wow, what drooling mouth breathers. I used to think that smarter people then me got this all figured out. I don't believe that with what I've been seeing lately.
I don't see how Charlotte lost its triple A credit rating. I mean if funds get low don't we just print more money to meet our needs? I can't see us ever defaulting.
Charlotte di not lose any rating at all. The whole of the United States lost its AAA rating and was downgraded to AA+ with a note that the outlook was negative which indicates that a further downgrade could be me considered in 12-18 months.
Printing more money or Quanatative Easing as it is known in the finance world is already gong on. Up toa point this works well but you cannot do too much of it. Why? Well, take any US dollar bill and look at it. What is it ACUTALLY worth? It's a piece of paper. It is worth maybe 2 cents. Its face value is the number printed on it because yo BELIVE that number and, so dies everyone else, me included.
Print too many bills and people start to lose confidence in the bill's face value. Now, that is very dangerous. Once people lose confidence on the face value of dollar bills where will it end?
Spend a minute to just think aboiut this and you will see just how dangererous the overprinting of paper money really is. Think what would happen if you did not believe a genuine $20 bill was reallly worth $20.
^Indeed and I agree with you 100%. In the context of Charlotte, when they day comes where they are forced to stop printing dollars, it's not going to be pretty in Charlotte. Charlotte's biggest industry (3 TBTF banks and a host of related businesses) is 100% dependent on this dollar printing. Compared to most cities, this retrenchment, is going to hit Charlotte particularly hard.
People here have often claimed that Charlotte is the 2nd largest financial center of the USA. What happens then if the USA's financial system gets sick. It's an interesting dichotomy because the very people who say this, completely ignore the fact this knife can cut both ways. Those idiot economists in that article created by the Observer still predict a "recovery" but I note their time frame keeps moving it out.
One thing I read about the S&P downgrade was a reference to the fact that S&P did not like the bickering that went on on Congress over the re-alignment of the debt ceiling.
S&P felt that there was far to much party politics and far, far too little concern for the care, management and wellbeing of the United States.
The Republicans (including the Tea Party) were only concerned with STOPPING the democratically elected Obama from implementing his policies.
If what I read was true, the Congress itself and mostly the Republicans are to blame for this downgrade.
IMO, Congress must look to play party politics far less and look to helping the country and its people far more in the future. - Fat chance.
However, what does it really mean? It has ticked off the Chinese who hold most of the US debts and whilst this is not a good thing it usually makes them spout what they are currently most afraid of. So not all bad there then.
The real problem comes when the US Government wants to borrow money. With an AAA rating, they'd get the best rates. Now they'll have to pay a bit more to borrow. Long term this will filter down to all of us and that is not a good thing.
Charlotte di not lose any rating at all. The whole of the United States lost its AAA rating and was downgraded to AA+ with a note that the outlook was negative which indicates that a further downgrade could be me considered in 12-18 months.
Printing more money or Quanatative Easing as it is known in the finance world is already gong on. Up toa point this works well but you cannot do too much of it. Why? Well, take any US dollar bill and look at it. What is it ACUTALLY worth? It's a piece of paper. It is worth maybe 2 cents. Its face value is the number printed on it because yo BELIVE that number and, so dies everyone else, me included.
Print too many bills and people start to lose confidence in the bill's face value. Now, that is very dangerous. Once people lose confidence on the face value of dollar bills where will it end?
Spend a minute to just think aboiut this and you will see just how dangererous the overprinting of paper money really is. Think what would happen if you did not believe a genuine $20 bill was reallly worth $20.
They don't "print" it anymore, but it is Quantitative Easing all the same... QE2 the second official round of it ended recently. They essentially monetize debt to put more currency in "circulation" (really just pixels on a computer screen).
QE3 is an open question that the markets are watching closely... what The Fed does related to more easing is pivotal to what happens next. Look for info, notes, and clues coming out of the next Jackson Hole meeting.
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