United States Heading towards a Depression?

Here's an interesting message from the Department Of Commerce.

Due to budgetary constraints, the Economic Indicators service (http://www.economicindicators.gov) will be discontinued effective March 1, 2008.

Economic Indicators.gov is brought to you by the Economics and Statistics Administration at the U.S. Department of Commerce. Our mission is to provide timely access to the daily releases of key economic indicators from the Bureau of Economic Analysis and the U.S. Census Bureau.

 

Even with the Fed supporting the housing bubble all signs are pointing to a crash.

Southern California home sales fell to a 20-year low in January

Median home prices for the six-county area fell 14.4 percent from a year earlier to a three-year low

Sales were down 24.6 percent from December and down 44.9 percent from the year-ago period

http://news.yahoo.com/s/nm/20080213...lifornia_dc;_ylt=Au6Up65WLyDHvYdfu_C4SV6yBhIF

The median price paid for a Southern Californian home was $415,000 in January, down 2.4 percent from December and down 14.4 percent from the year-ago period

That's too funny

 

There could be recession but I don't think as an economist that there would be no depression in USA economy. Because there are more countries to rescue USA economy and because more things are on stake than 1930's depression. So no one would like to have depression in USA.

 

Bernanke just said he is still open to continue cutting interest rates.

 

The economy is going to heat up with all the money the Fed is printing. The Fed added 60 billion in liquity in January and cut rates twice.

With the 168 billion fiscal stimulus plan and three-quarters of a percentage point Fed rate cut priced into the market in March, Inflation is sure to increase. The dollar is bound to weaken as a result which will add to the inflation rate.

Another question is how long the Fed can continue to support the duel housing and stock market bubble.

A bubble crash and stagflation is going to cause the biggest recession since the great depression.

Crude has risen to $94.47 per barrel and the market is down 100 points.

 

Rescue?

Mwoahahaha


Mwoahahaha


Mwoahahaha Mwoahahaha Mwoahahaha.. I can't stop laughing... Stop it man, you're killing me!!! Mwoahahaha

 

I just talked to some local Florida people and they are sure that the real estate is going turn right around in a year or so .......

 

Anything is possible. If the Fed keeps printing money home prices will rebound due to inflation.

A $25,000 dollar home in 1970 was worth $180,000 in 1985 due to inflation.

 

yeah he said even though the house he just bought has lost over 150 k in value, in a year, next year is the big turn around and the baby boomers will just be dropping money on Florida by the truckload to buy water front property

 

It's all relative though.. Income rose at similar rates, as did the cost of just about everything else.

 

Not necessarily, we had pretty heavy inflation during the '70s too. I hope you're right about home values in Florida! C'mon old people!

I'm a little too far north to get the beach-front country-club buyers, but hopefully the new port expansions put the construction labor force back to work and it keeps a lid on unemployment and foreclosures.

 

This housing bubble helped pull us out of the recession in the early 2000's and now it is back to bite us in the ass. Oh and screw investment banks, especially LEH they are run by monkeys.

 

GM reported the largest annual loss ever for an American automaker — $38.7 billion in 2007

It is making a new round of buyout offers to U.S. hourly workers in hopes of replacing some of them with lower-paid help.

http://www.foxnews.com/story/0,2933,330393,00.html

 

Hmmm I had a feeling that paying entry-level janitors $25 / hr wasn't going to work out as a long-term strategy. (Insert someone crying about the big bad corporations beating up on unions)

 

Local government look to seize foreclosed properties:

http://www.boston.com/business/articles/2008/02/14/city_moves_to_acquire_foreclosed_properties/

 

Good point.. And of course we know who we have to thank for that.... 8 years of living off of the work done by Reagan/Bush, only to claim success when things were good, and shift blame when they were not..

Simply the worst president in the history of the US, Bill Clinton... Eek... The more I look back, the more I realize he was worse than Carter. At least Carter tried.

Proving once again that the ridiculous cost of Union Labour will continue to kill American businesses until the US businesses organize themselves and have their own strike.

Anyway, I don't think we can blame any economic downturn, let alone the Bush admin for the big three auto makers in the US that time and time again, falter, flounder and fail at what foreign automakers do so well...

I think trimming the fat is a decision that is long overdue with GM...

 

Of all the things to cut, before a recession.... They cut the information line.

It would be hilarious and ironic, if it wasn't so damn sad.

and the Federal Gov.

 

Did anyone watch what the fed said today?