Today is bad news for the economy. Much bad news. 1. Unemployment rate increases to 5.5% - largest month to month increase in 20 years. 2. Oil appears to be shattering record one day gain, which was yesterday. Almost $10 a barrel today. 3. Automakers and airlines announce layoffs. 4. Stock market (DOW) down nearly 300 points. 5. Talk of more economic stimulus needed - meaning more debt for USA. Then I read a news story that quotes President Bush as saying "We're beginning to see signs that the stimulus may be working." What planet is this man from? Did he watch TV today?
yeah bush is an ass hole and hes from planet artard. doesn't deserve to be president. Im also afraid of are new candidates wont be much better.
Sure, a big part of the economy is headed down, but there's another small part of the economy that is headed upwards. The trick is to only invest in what will work over the next year or two. New technology is where it's at. Companies that are involved with solar panels, electric cars, and mobile phones will survive and even flourish in these hard times.
I disagree because the world economy runs on oil. To make the move from an oil dependent society to one where alternative forms of energy are used will take decades. Buses don't run on solar power and truckers don't transport goods using wind power semis. I can't see the economy getting better for a long time after Bush leaves office.
Frankly speaking it is really time for a recession, Bush stimulus is actually pumping air into an already over inflated balloon. A recession is long overdue and may help lessen the price of oil and correct the excesses of the Bush administration.
I think its funny how the Government (Bush) wants everyone to run out and spend this stimulus check. Not much we buy is made in America anymore, so spending the stimulus check on most products will do little good for our economy. I doubt the cost of oil will ever go down. As some economies thrive (China), more people will purchase automobiles and consume more oil. With China having such a huge population, I think once their middle class starts booming everyone is going to pay big bucks for gasoline.
China is the world's factory, but it has a huge surplus and export to USA. A contraction in USA economy will affect China in no small ways. Also it is sentiments playing up the crude oil futures. A contraction will cause the sentiments to sour and the speculators will run. Despite what was said by the Bush administration, I really feel supply is more or less equal demand. Just that the Fed policies depress the value of the dollar and everyone was scrambling to hedge against it by going for the most valuable and inelastic demand commodity which is oil, though other commodity was also going up strongly.
There are great buying opportunities in the stock market with the recent decline. Not sure how effective the economic stimulus package was though... I put my check right into savings.
I beg to differ, at current prices even after the huge drops the stock market is still quite near all times high, there is still a lot of room to be down. Slow down in the USA economy has just begin, there are bound to be more negative news in the months ahead. At least to me, the bottom of the pit is still some way off.
That is true. But when China hits the point where their citizens can self sustain their own economy by purchasing their own goods, the rest of the world is in trouble! @ yourfinancequestions, I don't see any buying opportunities. In 2007 I made nearly 18% return on my investments and today I am all cash. I see too much downward pressure on many industries.
Well despite the hype about China, its PPP is still far below that of industrialized nations, it is playing catch up after decades of rotting under Communist rule. Their economy is still mainly export orientated, it will be decades before they reach the stage of self sustaining.
investment is all about seizing opportunities ...i have been making great money in these times by going short on major indices...i immediately go long on refinery stocks when i c crude going high...this way i'm hedged against risk to my cash stocks...one can visit my site rockysinvestmentideas hosted at blogspot.com all abt investments stock markets n broader economy with some hard-hitting facts that could send a chill down the spine of r policymakers
Once considered as a good option to multiply your money, the stock market is now trying to check the bottom levels every day. Hence the time to invest in stocks is not now. Let the recession phase pass and safeguard your hard earned money...
Totally agree, for now cold hard cash is King (any other than USD). The stock market isn't low for your information. There are lots of room to fall.