United States Heading towards a Depression?

I thought the only limiting factor was the number of trees....

 

We will need a $500 dollar soon. Inflation and a dollar crash are becoming a real possiblility.

Here's a good article: 'The darker side of interest rate cuts'

It's discussed that the Fed is expected to lower rates to 1.75 percent and are not concerned with inflation.

http://money.cnn.com/2008/01/24/news/economy/barr_interest.fortune/index.htm?postversion=2008012511

 

Good article, and yeah inflation is out of control. I've been hearing people on CNBC call for more , these guys are nuts.

 

How can anyone see in the year 2008+ of a depression.
Thats hard to belieave

 

What do you mean?

 

Like you can't compare the 1930's depression to now days. For as long as I live there will be no depression in the United States.

 

No, you can't compare the 1930s depression to now.

Now, we have a shrunken manufacturing base.
Now, we import most of our commercial goods.
Now, we owe the money to foreigners, not to ourselves.
Now, we have an unbacked dollar, with hardly any physical reserves.
Now, we have 78 million people retiring over the next several years.
Now, we no longer have the work ethic that people did at the beginning of the 20th century
Now, we're in deep sh*t if things go sideways.

 

The UAW legacy pensions ard healthcare are putting Detroit out of business. GM has said retiree health-care benefits add about $1,000 to the price of each Chevy Silverado pickup it sells.

Each UAW member costs the U.S. companies $142000 in wages and benefits compared to the average hourly wage at a Mexican automotive supplier of $3

http://www.bloomberg.com/apps/news?pid=20601109&refer=home&sid=aTU6dWpTEicM

 

Yeah, but it's also that the cheap labor countries are also able to overcome the increased productivity of automation, by literally throwing people at a job, 4, 5 or 8 times as many as it would take in the US, at a fraction of the cost, and with no capital investment.

There was a time when we didn't buy things from China because they were commies and they committed human rights atrocities.

They still do, we're just too obsessed with commercial goods, and inflation is driving us to subsidize their authoritarian regime.

Again, I'm not down on the US worker, but reality is reality. GM and the others are in Asia now, and they are more than happy to manufacture their vehicles with goods produced in these regions. Corporations have no nationality, or domestic sympathies.

 

I'm taking it you're not going to live too long

 

There is so the truth. The only thing they worship is the bottom line.

 

December home sales fell by 4.7 percent and the median home fell by 10.4 percent last month, compared to December 2006, the biggest 12-month decline in 37 years

http://news.yahoo.com/s/ap/20080128/ap_on_bi_go_ec_fi/economy;_ylt=AlYxb9yQf31DVQvMbnEXTOms0NUE

 

I have this URL saved. I will come back to this in future time, the fed will be on our side as expected as for now. Europe countries are coroporating

 

The number of U.S. homes that slipped into some stage of foreclosure in 2007 was 79 percent higher than in the previous year and Countrywide posted a $422 million 4Q loss

http://news.yahoo.com/s/ap/20080129/ap_on_bi_ge/foreclosure_rates;_ylt=AnjwajRDbzTSAZ44VY1ON92s0NUE

 

Yes the home mortgage crises hit hard, that still would not send the U.S. to a depression. Hopefully these future rate cuts will help out

 

Printing money to prop up the housing/stock market bubble with cause high inflation and a dollar cash which will lead to the worst recession since the great depression.

 

I read these things but to be honest sometimes I feel out of my depth and limited in my understandings. Solutions are often short term such as interest rates as if they were selling snake oil in the 1900's "knock a dollar off and we'll sell more houses"
I am not clever enough to say what should be done. It seems logical to lower interest rates, being a cynic I often feel that the housing booms are desired by banks etc in a plot to get unsecured debt secured and keep the serfs as "tenant farmers" by offering them shiny things.
Interest rates are pretty similar in Europe with most of the source of funds that I work with coming from Spain of all places, at about 3.5 %
Can't help thinking that all these plans do more damage than good?

 

There is an incredible amount of people losing there homes. Just wait and see what happens when they start losing their jobs, the dollar tanks, and the share market tanks too.

Baby Boomers simply won't be able to retire but no one will want to hire them either. Seems like they are mainly responsible for this mess anyway.

 

Y'all are missing the coming securitized credit card defaults, as people can no longer tap their home equity to stay current on their accounts.

That wave hasn't even hit yet.

 

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