Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Roubini makes some good points here about what the world economy is facing going forward. The expiration of tax cuts along with unemployment programs expiring will have an impact.
Add to that the economic problems in Europe and their impact on the multi-national corporations who are employers here in the US.
When their overall profits are hurt, the reaction will be cutbacks and layoffs in the US.
Add to that the slowing in the BRIC countries.
None of this is bullish for the markets, and if by chance we do see the market begin to correct, that effect begins a feedback loop into the economy.
Many of us have held the view for some time that any improvement in the economy based on the massive amounts of government spending would be unsustainable, and would only temporarily postpone the continuation of the deleveraging that must eventually reach parity with incomes.
I think his point is that the idiots who still think the USA is in a recovery are wrong.
Quote:
Originally Posted by Osito
I can't believe there are people that think the economy is recovering.
Believe what you want, but your beliefs are baseless, without merit, meaningless and banal.
On top of that, your economy recovered nearly 3 years ago.
Now, if you can show me an Economic Law, or an Economic Model where jobs are a mandatory part of any growth in GDP, or where 0.X% growth in GDP translates into N,000 jobs created, or 0.X% decline in GDP translates into N,000 jobs lost, or even where a particular percentage or level of employment is required to sustain any economy, then please do.
Believe what you want, but your beliefs are baseless, without merit, meaningless and banal.
On top of that, your economy recovered nearly 3 years ago.
Now, if you can show me an Economic Law, or an Economic Model where jobs are a mandatory part of any growth in GDP, or where 0.X% growth in GDP translates into N,000 jobs created, or 0.X% decline in GDP translates into N,000 jobs lost, or even where a particular percentage or level of employment is required to sustain any economy, then please do.
Otherwise, you're just barking at the Moon.
Recovered....
Mircea
I think the issue people have is that they have not experienced the recovery. That is, the trickle down didn't make it to them. Also, the underlying fundamental problems weren't solved. Real estate never recovered, the unemployment problem hasn't appeared to improve, more growth in low wage employment opportunities than middle class paying jobs... This is the source of most of the frustration, and it will likely put downward pressure on the economy as a whole.
And I think we should also consider another valid point... While GDP DID grow, does anyone discuss WHY it grew? Ummm, stimulus money, bailouts, things that don't normally happen in a free markets? Our GDP growth was about as real as China's 8% GDP growth, if you believe that happened all by itself... Wonder how much of that growth was felt by the people working for a bowl of rice....
Europe is a mess but the biggest problem is actually China. China is viewed increasingly as headed for a "hard landing". Construction on housing and infrastructure is down 30% YOY and both exports and imports are down..........they aren't exporting as much and lower consumer/industrial in the internal economy is resulting a slowing domestic economy. China's local governments are also on the verg of insolvency as they rely on up to 90% of their revenues on housing sales yet sales and prices have collapsed.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
