United States Heading towards a Depression?

Honestly, I don't think we ever really truly saw it. The government spent too much time pumping money it did not have into paying people to do nothing. The worst is yet to come.

 

An astute assessment though the extent of the damage from the previous Administrations handling of the budget and their laxity allowing the multiple infringements against managed capitalism can not be understated. The expectations for the resulting upturn per the proper remedies employed by the present Administration may not have time enough to fully materialize before the midterm elections though apparent is the irony of the present situation.

Why the electorate would vote back into the majority the people who caused the Great Recession I believe is the real reason for discontent and finding the alternative if not the present but something entirely different is the direction being attempted.

 

Yep. We spent somewhere around a trillion dollars to delay the recession by giving money to Democratic party contributors.

Now we're a trillion more in debt and otherwise right back where we started from.

 

Kinda amazing how everyone was bitching about Bush and spending, meanwhile, Obama has spent more in 19 months than Bush and Clinton combined. Think about that. 16 years of spending vs. 19 months. If I did not know any better I'd think Obama was hell bent on destroying this country purposely.

 

Dow closed in the 9700's today. Any guesses as to when it will take to break the 9000? I say before Aug 15th.

 

It is a shame the Republicans have no restraint in financing foreign wars but haven't the time of day for the working people of their own country.

 

http://www.hussmanfunds.com/wmc/wmc100628.htm

I'm sure glad the financial reform bill going through took care of all the causes of the crisis

 

Intrade seems to be pointing to a between 7,500 and 8,000 by 31 December.

Of course, 1 January, 2011 is going to be a huge day for American business and, as a reflection, the stock market.

 

I love Intrade. Proof positive gambling laws in the US can be defeated by clever wording. You want a feel for where people's sentiment is really at, see what they will put their money behind. Almost as fascinating as Entropy.

On topic, its hard to predict the market, but I'm guessing 7500 is high. I subscribe to a few investment advice rags, and I have been getting spammed for the past week with Sell advice across the board. We sit here and rattle on about what to do now when the truth is, the "stimulus" boondoggle may have already completely f*cked our economy. The friends of the DNC who essentially stole the money from the American people, and the politicians who facilitated that theft essentially betrayed their country.

We are a bit like a guy who lost everything he had to a gambling and drug addiction. We borrowed 100k from the mob to start over, and instead spent the money on an 8-Ball and a plane ticket to Vegas. I guess a few laughs is worth a bullet in the head to some people.

 

That's because Constitutionally those are the only legal expenditures the Federal Government has. The job of the Fed is to protect, uphold and defend the Constitution of the United States of America. Not spend money on social programs. The document is only 4 pages long. I suggest you read it.

 

http://www.marketwatch.com/story/pending-home-sales-plunge-30-in-may-2010-07-01

Who could have predicted it?

 

It is a shame the Democrats have no restraint in financing political contributors but haven't the time of day for the working people of their own country.

 

The Quarterly reports for the just completed 2nd quarter begin in July and will have a bearing on the Markets performance on a fundamental basis - what will emerge will be the leadership for both individual stocks and categories that prove to be performing with sustainable growth.

No one expects the Great Recessions repercussions to end overnight particularly when entwined in political partisanship. The divisive politics will have effects on the economy but expansion will finally proceed when the issues for "all" those involved are resolved as is the objective of the present Administration and the surest path to success.

 

That's the old model. Now, the Congress determines which companies will succeed and which will fail. It passes laws to benefit some and punish others and redirects taxpayers dollars towards those it wants to succeed and levies punitive taxes on those it wants to fail.

As such, corporate success is only "sustainable" as long as the congressmen you paid for remain in office and keep working for you. If you don't keep paying them, they will just vote to enrich someone else. The votes of politicians are one of the last free markets in the U.S.

What a pile of socialist poo. No one with a decent sense of morality is going to agree with the looters.

 

The heart of the american dream is the pursuit of happiness; and now we're stuck in credit card debt, a recession, huge home mortgages, 2nd mortgages, car loans, cell phone bills; as a part of the middle class I don't see the American dream anymore. The middle class doesn't have any spare cash any more.

It is an unfortunate week in markets following an also abysmal May but under 9000 is unrealistic as this week is likely just reacting to some faulty trade regulations that are getting reformed again to hopefully some more favorable terms.

 

I'll be the first to admit I'm no market Oracle. Even the Gurus who claim to be do no better than the toss of a coin. I sincerely hope you are right about the quote above, but I'll stick with my prognostication. 10,000 was a critical support level and once broken, the market shed an additional 300+ points without breaking a sweat. 9000 is the new 10000 and the housing and employment numbers are practically guaranteed to be dismal. Amazing what happens when the government stops paying people to buy houses.

 

We could still see a short-term boost to the stock market as companies pull revenue into this accounting year and push expenses into the next accounting year to take advantage of this year's lower tax rates. This will make corporations appear to be more profitable this year, which causes stock prices to rise. Of course, that means corporate profits will fall next year and stocks will be pushed down by the same amount they were pushed up this year.

It's Newton's 3rd law of motion, as applied to government monkeying with the free market.

Of course, this boost may not do much while most other indicators are pushing the market lower.

 

Illinois is dying, economically speaking LINK.

 

Paranoid Americans.

 

The real question is, are we paranoid enough.