United States Heading towards a Depression?

Right now, almost everything is better than the stock market.

Check this out

http://blogs.telegraph.co.uk/ambrose_evans-pritchard/blog/2008/05/30/whoops

Click on the link below the graph to see the full version. lmao

 

How about this Worst June For Dow Since Great Depression

U.S. stocks fell sharply Thursday with the blue-chip index enduring its worst June so far since 1930

http://money.cnn.com/news/newsfeeds/articles/djf500/200806261704DOWJONESDJONLINE000760_FORTUNE5.htm

 

Yes, the Great Depression was a serious of minor stock market crashes. At every apparent plateau the 'experts' came out to tell everyone it was a great buying opportunity.

Then it crashed down to the next level again

 

Actually taking that money and investing in something concrete like real estate and other appreciable items earns even more.

Why do you think I mentioned that chief indicator. The percentage increase in what pet owners will spend on their pets is way down. Doom and gloom abounds.

The definition of a recession still remains though, as previously indicated.

 

Sure. But let's say that real estate goes down 20% in the next 24 months. You get a 2.9% return on your cash and invest it at the market bottom. That's almost 26% from jump street.

 

Uhm, no it doesn't. I've posted it. I've referred you to the NBER web site. They no longer rely only on GDP to determine a recession.

Not that it matters. This is going to be a very deep recession. Even when the BLS #s won't support it, people are going to feel it.

 

I don't see that happening. Real estate never loses value. It always appreciates. Even the over valuation properties are still above their market value even after devaluing the over valuation. If that makes sense. Something that was bought for 100k was valued at 400k, but was really only worth about 150k with improvements and age. So if it gets valued at 200k, thats not a 50% loss but more of a 25% gain overall on the true over valuation.

The thing is, anything I have bought I have pulled money out of to put back into it, not to piss away on debt. Your return would make sense if I played that market the way others did and over bought, over paid and over with drew on the FAKE equity. I'm talking about the net gain on real equity over time, coupled with improvements.

Real estate like the stock market requires you stick it out for the long haul, over time. Not - get in, get out. I would no sooner flip a house than I'd flip a stock. You wanna make money flipping? Buy a car on eBay and fix it. Sell it the next week for a profit. That's the only real value quick money flipping method that I see as viable.

Actually the definition still applies. The Economists at the NBER do not rely on GDP alone, but they do look at it. That said, the traditional definition still applies. If it does not, why even look at GDP or anything for that matter but personal income?

Frankly I doubt it. The worst has pretty much passed.

 

In any case you want to get the 200k not the 400k. So in the interim the 2.9% is better than nothing.

 

ROTFLMAO. I've been right, month after month in this thread. We haven't even hit the halfway point, and I think many here who also have an idea of what is going on, would tend to agree.

In fact, there aren't too many sunshine economists left around these parts.

I think they are counting pennies for crack and sucking on pocket lint for sustenance.

 

Is this a joke? I hope so.

And how do you think the worst has pretty much passed, is this just some hunch, or did you read it in a fortune cookie because this claim is kinda crazy.

 

It's just started and already Obama is calling for a second stimilus

So borrowing more money to give people to spend is going to give Fed more leay to fight inflation?

Democratic presidential candidate Barack Obama called for a second round of stimulus checks to spur consumer spending and give the Federal Reserve more leeway to fight inflation amid skyrocketing oil prices.

http://www.bloomberg.com/apps/news?pid=20601068&sid=a5UJYETXs8yg&refer=economy

 

Well, Obama is an idiot because more stimulus will cause more inflation, not help the FED fight it.

He's just mouthing stupid populist BS to buy votes. No economics adviser worth a damn would advise such a thing to fight inflation.

 

He has a crystal ball.

 

lol, I can't even believe someone wrote that

buy a place in florida you too, can be losing thousand of dollars a month on a "concrete asset"

there are people here who bought at the top and probably won't see those prices again for 10-15 years and by then the dollar will be probably worth 50% less, so even if they sell at the price the bought at they still are screwed

 

#15: You are here

"I am convinced we have now passed through the worst -- and with continued unity of effort we shall rapidly recover. There has been no significant bank or industrial failure. That danger, too, is safely behind us."

- Herbert Hoover, President of the United States, May 1, 1930

For a contemporary comparison:

 

Could Hoover be reincarnated as Mia? Hmmm

 

Oil reaches $142 in today's trading.