United States Heading towards a Depression?

I could really use that Breeze Wood Translator right now.

 

Why pretend it would help you?

 

For someone who claims they are "90% invested in the stock market", you're going to have a rude awakening. See also, diversify.

 

I have many types of investments and have done very well in the markets - where is your reference I am 90% in the stock market?

For the stock markets I am a trader and seldom solicit advice.

 

You seem to be missing the simplest thing -- the DJIA is denominated in dollars. The DJIA only appears to be stable because the dollar is falling. The DJIA is only stable in nominal terms; in real terms it's falling.

With the inflation and employment numbers being cooked by the government, I'm not sure I put much more faith in the NBER.

So few people seem to understand this. This is the government manipulating hundreds of thousands of business to cook their books.

And as if by magic... none of this is reflected in the official inflation numbers. This means anyone whose income is indexed to the official rate of inflation is being screwed.

 

Thanks for the update. The news came from Drudge, the one the left-wingers hate. Maybe they hate him because he beat them to the Monica Lewinsky story... "dog eat dog" with the political crowd.


If your example about a CEO was applied to the way the finances in the USA are/were run, it would be declared insolvent and the CEO fired.

 

What you state is correct in terms of the dollar and a relationship between the dollars value and the DJIA however as many more variables there are in the economy they also have the same relationship as the dollar to the Index. The DJIA registers daily the complete composite of the entire US economy.

Devaluing the dollar is the present policy of the Administration to increase exports, promote liquidity, to lessen the finance value of overseas debt, etc. etc. - until inflation becomes an issue the devalued dollar is the silver lining and elixir in remedying the economy by the least cost.

 

Did you remember to click your heels three times? The wish is no good unless you do it properly. Hey Breeze, when you want to know if worker productivity is up or down, you check what the DOW closed at yesterday, right? Same for median wages? Same for consumer cost of a given commodity, as well as rise and fall of commodity prices? Its like a magic number. You want to know if a company cut dividends, look at the DJIA. You want to know if Obama's approval is dropping, look at the DJIA. There is almost nothing that number can't tell you. Ok, now quit bogarting that joint.(No offense Bogart)

Everyone Sing Along!!!

[video=youtube;QVS3WNt7yRU]http://www.youtube.com/watch?v=QVS3WNt7yRU[/video]

 

So when the DJIA has wild one day swings, it means that the economy itself really lost a huge portion of it's value overnight?

I'd be laughing, except that I am starting to worry that you actually believe what you're saying.

Devaluing the dollar destroys the wealth of every American.

 

The numbers being used by a large company I work with: Real Unemployment is at 17%. Real Inflation is at 10% because the Fed is printing money with nothing to back it.

And have you seen how much more it costs to go to a restaurant these days? Every restaurant I know - every single one - is raising prices and decreasing portions. Vox Populi, an established upscale restaurant, shocked Boston this week when they announced that they will be closing their doors because the price of food is rising every month. So far this year 48 restaurants have closed in the Boston area, a 30-year record.

Obama is partially right when he says that the problem is one of perception. It's the experience of the Middle Class that the economy still sucks, and Obama's speeches indicate that he doesn't perceive that.. Unlike President Clinton, Obama doesn't feel our pain.

 

Welcome to the new socialist paradise.

I think Clinton only felt our asses.

 

Yes, the DJIA is a reflection of the economy daily and by trend.

Since when is devaluing the dollar and printing money a reduction of wealth when applied properly over time - being afraid is how the politicians that mismanage the economy are elected to office.

 

wow, people have been talking about it since 2007, it's been a long time coming, though I feel it's beginning to end, at least I'm hoping

 

If you have something you are basing your hopes on, please spill the beans. Otherwise, that too is nothing other than another Breeze tactic. History shows that the same people that caused the last Depression are still in charge. Would you like to be prepared for the future, instead of hoping against it ?

 

The people that have curtailed the Republican recession of 07-09 control the Senate and Executive. Those who were responsible for the recession and skirted their responsibility in solving the calamity have captured the House by discretion.

 

No, its a reflection of the artificial manipulation of currency. Look at what's happened to Gas prices in the US after the fed started printing more monopoly money.

 

The truth is that it is never applied properly. A better question is; Who gets "eased" when Quantative Easing takes place ? ( Answer: Bankers ) Remember your economics lesson Breeze; More Debt Does Not Equal Lesser Debt.

 

Karl Denninger is most fun to read: The Disease That Is America.

Or, if you're too illiterate or stoned to read...

[video=youtube;XK4dxacv7jY]http://www.youtube.com/watch?v=XK4dxacv7jY[/video]

 

What is your point? The 07-09 Recession was caused by the policies and principals of the previous Republican Administration.

Thank you for pointing out the after-effects and why the present Administration is initiating the appropriate remedy's for the recovery as worked in curtailing the Recession.

 

No, what you are seeing is the affects of printing money.

What you are seeing is what happens when you artificially manipulate currency and interest rates.

The 07-09 policies you are referring to are Democrat policies, not Republican. I think you should try and pay better attention in school. Democrats controlled all of Congress, (both houses) with a massive majority from 2006 to present.

Maybe you want to site some of the actual Republican bills during that period that caused the present day mess we are currently STILL in?