Thread: The strongest economy in the world

More good news

Bloomberg.com: Worldwide

Kara Homes Inc., the New Jersey builder known for so-called McMansions, filed for bankruptcy after $250,000 discounts failed to lure buyers.

The closely held East Brunswick, New Jersey-based company sought Chapter 11 protection in U.S. Bankruptcy Court Oct. 5, saying it owes $296.84 million to lumber, concrete, electrical, plumbing and woodwork companies while holding $350.18 million in assets, primarily unsold houses and land. One property for sale is the 6,319-square-foot, five-bedroom ``Buckingham'' model with a three-car garage, listed for $1.5 million in Freehold, New Jersey.

Originally Posted by Storekeeper

and it's primarily going to have the impact you describe on college graduates

Wrong, I suggest you read a bit more about the subject before assuming anything. Thanks.

Originally Posted by Butterfly

Originally Posted by Storekeeper

and it's primarily going to have the impact you describe on college graduates

Wrong, I suggest you read a bit more about the subject before assuming anything. Thanks.

At the $6000 level you described I'm entirely correct. Thanks for your input.

The $6000 was an illustration. If it's going from $100 to $1000, they are equally fucked. It doesn't change the story, the end results is the same: fucked over

And this is exacty what's wrong with the property market. Look at this commercial, beyond pathetic.

YouTube - Suzanne Researched This Commercial

Originally Posted by Butterfly

And this is exacty what's wrong with the property market. Look at this commercial, beyond pathetic.

YouTube - Suzanne Researched This Commercial

Sorry, I still don't feel sorry for these people. I don't care if they're educated or uneducated.

It's not about feeling sorry for them, it's about them contributing to a huge fuckup waiting to happen.

Originally Posted by Butterfly

It's not about feeling sorry for them, it's about them contributing to a huge fuckup waiting to happen.

For the right price I might jump on some repos. I think the banks will be able to dump lots of repos.

The people that over-extended themselves by taking loans that were over their heads, be they ARMS or fixed, is their own fault.

It's the American mentality to a large degree. RE went way up in recent years. The 1997 tax law promoted people investing and speculating in single family housing. Combine this with the lowest interest rates in decades and you still big jumps.

The result for many is allocating a high portion of the gross income into their mortgages.

Highest rates ever right now.

After flirting with record closings for more than a week, the Dow Jones Industrial Average surpassed its all-time close of 11,722.98 on Tuesday, ending the day at 11,727.34.

Some say this new Dow territory merely puts us back where we were five years ago. But this argument misses the point. We’re not back where we were five years ago. Five years ago, the markets were working their way out of a bubble; this time it’s the real thing.

A financial bubble is much like a soap bubble. It occurs when the value of something increases, but inside that increase there’s a good amount of air. Over time, the skin of a bubble grows thin, and eventually the bubble either breaks or deflates. Bubbles are, by definition, hollow.

The current boom, however, is different. It is driven by something tangible — profits. As the above chart shows, since the full implementation of the president’s tax cuts in 2003, both profits and stock prices have been rising. In fact, stocks have not yet caught up with the underlying fundamentals of profit growth.

From companies to shareholders, those who bet on the Bush boom have done well. Those who bet against it, lost out.

— Jerry Bowyer is an economic advisor to Blue Vase Capital Management and the author of The Bush Boom.

Jerry Bowyer on the Dow Jones, the Bush Boom, and Bubbles on NRO Financial

Know what companies are really pushing that corporate profit curve out of the DJIA 30 big companies? Citibank, Home Depot, Johnson & Johnson, Exxon (by far the biggest increase of all due to oil prices), JP Morgan, Microsoft, Pfizer (drugs), P&G, Verizon, Wal-Mart. Of these Exxon, Citibank, JP Morgan, Microsoft, P&G, and Wal-Mart represent the biggest increases. When you think about it then it makes sense: loans for new construction followed by people buying crap to put in their houses requiring a fair amount of oil to accomplish their tasks. All the result of cheap and easy credit.

The really big companies that pay well aren't part of the profit curve. They are the ones laying off tens of thousands of people.

^ good analysis surasak. And the Dow Jones is probably the worst index to compare against for corporate profitability.

The Bush Boom, what kind of crap is that ? how about War is Peace.

Well, you know, let's look at the Clinton years. Higher taxes right? That automatically means a bad economy, lower profits? Bzzzzt. Wrong. Corporate profits more than doubled under Clinton and tax revenues doubled (leading to a slight surplus).

http://frwebgate.access.gpo.gov/cgi-...08ja01.txt.pdf

The biggest benefactors under Bush have been financials and oil. Those kinds of profits don't trickle down.

I hate Bush as much as anyone, but the truth is, the economy has been getting better over the last two years.

Yes, there are certain aspects which are not well (such as property), but I think this is a problem anywhere in the western world; it is a lot bigger problem in the UK than the US.

Bush still needs a bullet in the head though.

^ actually, I will go further saying it's a miracle that things have improved a bit recently in the US. Things have been pretty bad in leading Europe though (ex UK of course). The Euro "masqued" inflation is taking its toll.

Easy credit does wonders. It's an economy based on borrowing and it's not sustainable. As a whole personal income disposition is negative. Look at the massive amounts of money the U.S. has to borrow every year to balance the accounts. This isn't the kind of boom we had between 1992-2000 where national income doubled. We still have a million more people out of work than when Bush took office. Large industrial companies with good high paying jobs are laying people off by the tens of thousands (Intel hit hard where I live).

Originally Posted by Storekeeper

Damn glad I was born in America and not England!

I am sure most of us living outside the US agree.......

You meant the US, didn't you - not, say, Peru or Cuba.....?

Bada-bing!

Phelps, 73, who owns neither a house nor a car, showed that cutting interest rates or taxes would give only a short-term boost to employment and create higher inflation down the road.

Cutting neither taxes nor interest rates has any impact on long term job growth.

U.S. economist wins Nobel for work on inflation, jobs - Yahoo! News

The US is on course for a credit bubble bust. The housing bubble is only a bubble within the credit bubble. And is a harbinger of things to come.

And because of globalization, that bust will affect the rest of the world in one way or another, most likely dramatically.

Think 1997 Asia.

The game is about over.

Look at all the optimism in the stock market, the news, the downplaying of the housing slowdown, the pooh-poohing of the nasayers, etc.

The question is when?

Woke up again today proud as hell to be an American. Slept well knowing George Bush is the President. Also helps knowing there are good men like Tony Blair standing the watch in other parts of the world.

The US will still be standing firmly in "Top Dawg" position long after most posters on this board have passed on to Hades ...

What's really funny is if we do get knocked off our pedestal ... it won't be by any of our fellow English speaking countries

Shopkeep, "Pride cometh before the fall."

think back to Japan 1990s. Same same now in the US. Deflationary pressure in many parts of the country all at once.

Japan was sucking air for almost 10 years.

There was a depression in the US in the 1930s. It has happened before and it could happen again.

My guess is Fannie Mae and Freddie Mac will be found to have been using the same accounting principles as Enron.

Originally Posted by Storekeeper

The US will still be standing firmly in "Top Dawg" position long after most posters on this board have passed on to Hades ...

I'm cerberus buddy! I'll meet the Pharahos Bush and Clinton at the gates of hell. I have it on the best authority that Reagan and Kennedy and other tyrants are burning in the lake of fire as we speak.

Kerux,

It it happens, then it happens. I'm a proud American now ... and I'll still be a proud American.

Nothing amuses me more than listening to wankers talk shit but they won't give up them USA passports ... NO SIR.

The FACT is the good ole USA is chugging right along doing quite well thank you.