The dollar hits a new low against the Euro :(

Like Ron White says.. "You can't fix stupid".... I live in the US, and the economy from my perspective has been on the upswing for several years now. Low dollar or not, business has been good, people are spending money, and gas dropped another 10 cents today.

Ah, doom and gloom...

 

I'm moving this post up to number one on my top 10 list of dumbest posts ever on DP.. You just beat out Gworld and AGS for the lead.. Congrats!

 

Why rent? Condos around here can be purchased (now) for less mortgage payments than you'd pay for rent at an apt. My last apt cost me 850/month. Condos around here go for 730/month.

But yeah, more people looking to rent will probably raise the rent rates. Apartments are turning to condos here because of that. Just cheaper to start a mortgage than to pay rents that are too high for what you get.

Or they are trying to sell the house for (possibly) less than they originally purchased it for to avoid it. Bad consumers make bad decisions; when the government decides to bail them out, yep it affects us all.

do you see any evidence of this? seems like us and the chinese disagree quite a bit. the chinese own very little of our debt so its not really an issue anyways. the chinese very much rely on us to keep their economy going. that's a good thing about globalization - everyone kind of relies on everyone else.

That paper reads like hysterical garbage, not like a well researched article (imho).

http://www.heritage.org/Research/TradeandForeignAid/wm467.cfm

and (my favorite) walter e williams

http://www.capmag.com/article.asp?ID=4113

given that we have an unemployment rate hovering under 5% I haven't seen detriment to outsourcing, have you? not to say that all outsourcing is good or beneficial, just to say that outsourcing isn't always bad - its not a neo-con conspiracy or class warfare. its just the free market expressing itself - and you should appreciate that.

 

Exacly.. WHY RENT? While everyone whines like a little bitch about the economy in the US, interest rates are lower than they have ever been, even now. Back in the 70's my parents paid 14% plus on their mortgage. I'm at 5.14% fixed, with a fixed 9% line as well if need be...

The atomosphere in the US right now will lead to nothing but progress and growth. Don't mistake slow downs for recessions.. The slow downs are there for a reason...

Couple all this with the fact that GWB's tax cuts are still in affect, we are taking in more tax revenue, and people are holding onto more of their own money. That is money they spend and put back into the economy.

As for the Chinese, if the US stops buying their goods, they will go poop... Personally, I would like to see us stop buying toys from that part of the world, for several different reasons.

Ultimately the US consumer, the liberal one anyway, that cries for the working union man, will bitch all day long that an unskilled GED-less factory workder should be making 100k a year, but at the same time, they do not want to pay $10 for a toy they could buy for $1 from China...

It's a vicious circle of ignorance and stupidity.. There are no signs of it stopping either...

At the end of the day, doom and gloom is not upon us...

 

I hate you. I'm at 6%

 

You think that it is impossible for the U.S. dollar to be wiped out? Did you know it has lost 90% of its value since 1913? Did you also know that the U.S. dollar is not backed by any precious metals? When you look at it this way, it is very possible.

 

Only time will tell with this one, its too early right now, but I don't see why the Chinese wouldn't eventually.

It isn't fair to attack a paper based on the way it sounds. You have to look at who wrote it and whether or not it is based on facts. One thing that this shows is that not all economists agree on the outsourcing situation.

I've been thinking of buying a house. But I don't want a mortgage. I actually want the house to be mine, free and clear of any debt. How much do you pay in property taxes?

 

I don't think this scenario is likely, because the decision of whether or not to buy Chinese goods comes more from corporations than the government.........at least, it seems this way.

The chances of a company like Walmart suddenly refusing to import goods from China is very unlikely. I think China ultimately has the advantage. We owe them money, and whenever you owe someone money, you put them in a powerful position.

I don't believe the U.S. can control China by refusing its imports. I mean, China could always switch to other markets, and even if the U.S. government did, this would automatically hurt corporations like Walmart, who have enough money and lobbying power to persuade the government to change its course.

 

Around 3,000 I think. Its worked into the mortgage payment each month, so I really don't see it. You are paying rent, what's the difference? Mortgage, rent, same thing. In a mortgage, you are getting something out of it (equity). Rent; you are just pissin' in the wind.

I sound like those annoying homeowners who used to tell me to stop renting, so I'll stop LOL

 

Well, I wouldn't demonize renting too much. The reason I say this is because the same guys who suckered low income families into taking out these Adjustable Rate Mortgages used the line of "renting is wasting money."

In a way, this is not true. If you can't afford a home, it is better to rent an apartment. It is better to rent an apartment than to end up a victim of the latest mortgage crisis. If you're making a nice salary at a stable job, a mortgage is something you can afford. But if you're young and just starting out in life, it may be better to weight until you're more stable and can afford the payments.

The reason I rent is because I don't feel I'm ready for a mortgage yet. In an apartment, if something breaks, like your fridge, you just call someone to fix it. In a house, you've got to pay for plumbing and repairs, and it can be pricey. Renting can serve its purpose for some people, though I sometimes yearn to have my own yard instead of having people live under me.

 

Try not to flatter yourself too much Mia, you're only posting here tonight in P&R because GTech has asked you to stand in for him.

 

Well, my commercial mortgage is higher than 6%... eek.. Still low as hell considering the Carter, then Clinton years...

The decision comes from the American consumer. You know, the one that wants the uneducated union guy to make a boat load of money, yet does not want to pay for the goods produced by them, because it COSTS TOO MUCH!!!!

Can you really blame a company for outsourcing to satisfy the demands of the cheap ass American consumer?

Of course.. because again, the cheap American consumer wants cheap goods, but wants to be paid a lot of money to make the same goods. Like I said, it is a vicious circle...

What other market?

What boggles the mind even more about the liberal American consumer is the fact that they will piss and moan all day about how that over paid, under worked uneducated union man works in horrible conditions, (has to stand on his feet for more than 10 minutes at a time..) but will gladly buy cheap Chinese toys for their kids, knowing full well that kids younger than theirs made the toys, lost fingers, died, whatever... China treats it's people like complete shit.. Forget the Sudan and Darfur, China has to have some of the worst human rights violations on the planet.

If only it were that simple.. The adults are talking AGS, time for beddy bye for you.. Night.

 

They need use as much as we need them. Also the countries in the Middle East combined own more of our debt then China does.

Also the U.S. consumer controls where goods are bought from if they stop buying Chinese goods the corporation will stop selling them, but the US consumer have choose to pick cheap goods from china of goods made in America.

The benefit of this is it helps keep inflation down.

 

No one put a gun to their head and forced them to take out Adjustable Rate Mortgages. Are people not reasonable for their own actions anymore?

 

European and Asian investment banks have exposure to risky U.S. subprime mortgage loans

Its funny how the subprime market actually was helping prop up the declining dollar by creating a demand for subprime backed securities

 

Exactly... For once, Liberal Americans need to finally take some responsibility for their own actions instead of blaming someone else.

 

And how much was gas 10 years ago? Back in my day that was called inflation. Of course they will tell you that inflation isn't happening as they leave out items you may actually need, but hey, these are the same people convincing you that social security isn't a ponzi scheme.

BTW, the reason people can still spend like mad is because of the ease with which they are getting home equity loans, which is clearly getting to be a big problem. Well, that and the fact that Chinese slave labor can lower the inflation impact a little for the Wal-Mart shoppers among you.

 

Gas was 89 cents a gallon for regular 10 years ago.

 

Gas has always been cheap in the US.. It is still is, technically compared to other countries, and if you look at the overall cost of living increases, inflation and other factors over the years, gas should probably be about $20/gal in reality.

It was 80 cents/gal when I was in high school in the 80's, but compare that to a few short years before that, when gas went from 24 cents/gal in the late 60's to over a buck a gallon in the 70's.

Gas is more expensive than it was 10 years ago; but so is just about everything else. Prices rise over time... My parents first car, a Mustang in 74' was $3000. That same car today sells for $30,000.

Inflation generally occurs when the governement starts printing more money to offset a recession or other economic slow down.

Simply encourage people to earn money, then let them keep more of that money, they will in turn spend that money.. The end result, no inflation, good economy, more tax revenue for the government.

It's simply high school econ 101... No one ever taxed an economy into prosperity, NEVER... Not once in history has that worked...

Bull shit. The reason people are spending is because they are keeping more of their own money.

Those of us that used home equity loans wisely used them to improve our homes, increasing the values 10 fold.

In the end, consumers have more money in their own pockets thanks to Bush's tax cuts, and the hard work of those that actually work.

FYI, not all of us shop at Wal-Mart. I've been there twice this year, neither time by choice...

 

You're thinking more like 20 years ago man...