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Thinks s/he gets paid by the post
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Posts: 2,119
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Is this how our economy really works?
For now, however, the Fed has obviously concluded (and we hope it’s right) that it’s more important to try to mitigate current conditions than to worry about hypothetical concerns. Economic growth in the fourth quarter of 2007 slowed to a barely perceptible 0.6 percent. Housing is already in a recession, and manufacturing is headed down. Foreclosures are rising. Lending is constrained. Consumers are pulling back in the face of job uncertainty and a reduced ability to borrow against their homes.
From todays NYTIMES editorial... It seems that the only way our economy will expand is through people borrowing against their homes to buy stuff made in another country. How does that help the economy? I have a feeling that the big shoe is going to drop in the equity markets and 10,000 dow will be a speed bump on the way way down .... |
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#2 |
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Give me a museum and I'll fill it. (Picasso)
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Posts: 7,430
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You're too pessimistic. People have to spend regardless of the economy, on things like food and gasoline and utility bills, etc.
The consumer has stepped up and done more than their share to get us back after 9/11. Meanwhile, the Fortune 1000 companies are sitting on hundreds of billions of cash on their balance sheets. I think it's time for corporate America to step up and stimulate the economy.......... ![]() The Fed is dropping the cost of borrowing dramatically to invite businesses to do just that. That's not to say there will not be ugliness ahead........ ![]()
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Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:) President Obama, please know that I will continue to cling to my guns and religion........:) |
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#3 |
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Thinks s/he gets paid by the post
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Posts: 2,992
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Wall Street climbs the wall of worry.
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#4 | |
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Full time employment: Posting here.
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Posts: 535
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Quote:
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#5 | |
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Give me a museum and I'll fill it. (Picasso)
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Posts: 9,249
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Quote:
Oh boy, break out the party hats and firecrackers! A whole 60%!
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“When you realize that you are one of the rare few who observe moral principles in their relationships with others, there is a temptation to sink into amorality, not out of conviction or pleasure but simply to avoid further pain, because there is no greater suffering than being an angel in hell, whereas a devil feels at home wherever he goes.” – Martin Page, How I Became Stupid |
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#6 | |
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ... ![]() ![]() ![]() ![]() ![]() ![]() ![]() Join Date: Aug 2006
Posts: 7,430
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Quote:
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__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:) President Obama, please know that I will continue to cling to my guns and religion........:) |
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#7 | |
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Thinks s/he gets paid by the post
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Posts: 1,412
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pretty much every company that makes stuff overseas has hired a lot of people here in the last 10 years. they just hire skilled people and not factory workers |
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#8 |
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Full time employment: Posting here.
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Posts: 535
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#9 |
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ... ![]() ![]() ![]() ![]() ![]() ![]() ![]() Join Date: Aug 2006
Posts: 7,430
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I wasbeing facetious, I haved time on my side..........
![]() Besides, I've been 15% in bonds since 1999.........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:) President Obama, please know that I will continue to cling to my guns and religion........:) |
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#10 |
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Recycles dryer sheets
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Posts: 177
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[quote=newguy888;609607]
"From todays NYTIMES editorial... It seems that the only way our economy will expand is through people borrowing against their homes to buy stuff made in another country. How does that help the economy?" What about new jobs and rise in incomes? |
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#11 |
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Thinks s/he gets paid by the post
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Posts: 2,020
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>What about new jobs and rise in incomes?
What new jobs and what rise in income? |
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#12 |
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Thinks s/he gets paid by the post
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Posts: 2,992
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#13 |
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Recycles dryer sheets
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Posts: 177
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I knew somebody would post that cute reply. FYI, normally we have have always had, in the long run, a rising GDP number that creates new jobs and we have rising personal income at least equal to inflation rate. Recessions come and go FYI.
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#14 |
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ... ![]() ![]() ![]() ![]() ![]() ![]() ![]() Join Date: Aug 2006
Posts: 7,430
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Maybe we should factor in that US personal productivity has been SOARING in the past several years.......and shows no sign of regressing.
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Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:) President Obama, please know that I will continue to cling to my guns and religion........:) |
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#15 |
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Thinks s/he gets paid by the post
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Posts: 2,992
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I know for a fact I am much better off financially now than I was 10 years ago. So even after a tech crash,9/11 and this real estate fiasco. Clinton and Bush both were good to me
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#16 |
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Thinks s/he gets paid by the post
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Posts: 2,203
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Yes, I also have trouble getting excited about impending bear markets. Bear markets happen. They are temporary. I just have to look back at how much higher my portfolio is compared to 2000. Makes the short term stuff look unimportant.
I'm just not worried about the US economy falling off a cliff never to recover. Yes, there might be some short term pain. We'll get through it. Audrey |
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#17 | |
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Thinks s/he gets paid by the post
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Posts: 2,020
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Quote:
![]() edit: I'm a lot better off financially now as well. I was in college, living at home, and working for just a few dollars over minimum wage. I also didn't know beans about LYBM. |
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#18 |
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Moderator
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Location: New Orleans
Posts: 6,084
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I'm a lot better off too. Things could have been much worse. Let's see, in 1998 I was newly divorced, my net worth was negative, I had a soft money job that was projected to fold at any minute, my salary was only 42% of my present earnings, I had nothing in either retirement accounts or taxable, I had a total of $200 in the bank and the rent was due. Yep. Things are a LOT better, now.
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Dreaming of retirement.... " - - my greatest skill has been to want but little - - " (Henry David Thoreau, in Walden) Last edited by Want2retire; 01-31-2008 at 04:14 PM. |
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#19 |
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Thinks s/he gets paid by the post
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Posts: 1,758
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#20 |
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Thinks s/he gets paid by the post
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Posts: 3,052
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