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Market Economy Continues to Grow

Discussion in 'Political Discussion' started by PatsWickedPissah, Mar 31, 2006.

  1. PatsWickedPissah

    PatsWickedPissah PatsFans.com Supporter PatsFans.com Supporter

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    Good news for everyone's 401Ks...

    http://money.cnn.com/2006/03/31/markets/markets_newyork/index.htm

    NEW YORK (CNNMoney.com) - Blue chips slipped Friday, at the end of one of the best first quarters for the major gauges in years.
    While concerns about interest rates are bound to remain in place next week, stocks could benefit from some early quarter and early April seasonal strength.
    Personal income rose 0.3 percent in February, the government reported. Economists surveyed by Briefing.com thought it would rise 0.4 percent. Income rose 0.7 percent in January.

    Personal spending rose 0.1 percent in February, versus forecasts for no change. Spending rose a revised 0.8 percent last month. The report also showed a mild inflationary environment. The "core" PCE price index, the report's inflation component, rose 0.1 percent, in line with estimates.

    The University of Michigan's revised consumer sentiment index, released after the start of trade, rose to 88.9 from an earlier read of 86.7. Economists surveyed by Briefing.com thought it would rise to 86.9.

    The Chicago PMI, a regional read on manufacturing, rose to 60.4 in March from 54.9 in February. Economists thought it would rise to 57.0.
  2. BelichickFan

    BelichickFan B.O. = Fugazi PatsFans.com Supporter

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    #24 Jersey

    I know my 401K is doing just fine which is why I also wonder about people sniping about corporate profits. Not everyone has a 401K but a large number of people do so those evil corporate profits help more than the CEOs these days.
  3. Patters

    Patters Moderator Staff Member PatsFans.com Supporter

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    War and deficit spending have always been good for the economy, that's why they're so popular.
  4. PatsWickedPissah

    PatsWickedPissah PatsFans.com Supporter PatsFans.com Supporter

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    No question that as a stockholder those CEO and inner circle comp packages are WAY over valued in my opinion, but like NFL player salaries they do reflect what the market will bear. No system, including govt regulated capatilism is perfect but our system is lots better for EVERYONE than those socalist paradises that Patters et. al. grow tumescent over.
  5. Harry Boy

    Harry Boy Look Up, It's Amazing PatsFans.com Supporter

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    The Sore Loser Democrats don't like to talk about the economy right now, Cheney shooting his pal in the face is more up their alley.
    Last edited: Mar 31, 2006
  6. BelichickFan

    BelichickFan B.O. = Fugazi PatsFans.com Supporter

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    #24 Jersey

    Let him dwell in his misery, that what Democrats do best.
  7. BelichickFan

    BelichickFan B.O. = Fugazi PatsFans.com Supporter

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    #24 Jersey

    They may be pumping it a little bit but it's less fake than the boom years of Clinton which were totally fake thanks to the dot com boom.

    The ecomomy is actually very good right now. Low unemployment, good profits, good productivity, strong hiring expectations for the rest of this year. Even knocking it down a little due to the way, it's strong right now and it's real.
  8. Patters

    Patters Moderator Staff Member PatsFans.com Supporter

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    Mr. Redundancy, there are a lot of things that Democrats like to talk about with regard to the economy: the massive debt, the fact that a huge part of the debt is owned China and Saudi Arabia; the weak dollar; a stock market that is still struggling to get back to the levels Clinton left us at; high oil prices; and so on. Of course, people like many of us here are doing well because we are old enough to have invested during the good times and already own real estate, but unless things change, life is going to be difficult for today's young, given the high price of real estate, health care, and the national obsession with consumption rather than saving.
  9. Patters

    Patters Moderator Staff Member PatsFans.com Supporter

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    The dot com boom was real. Everyone jumped on the bandwagon, and most of did quite well, thank you, if they weren't day traders and diversified properly.

    Yes, the economy is doing well, but let's not live in a fantasy world and pretend the fundamentals are all sound. We need to get our deficit spending under control, as well as our health care costs. If you took out of our economy for billions that Bush is pumping into Iraq, our economy would not look quite as strong. Remember, Reagan did the same thing with regard to deficit spending, and when he left office, we entered a recession that ultimately sunk Bush I.

    I'm not saying Bush's economic policy is a failure, but I am saying it carries with it some risks that will be difficult to manage going forward.
  10. shirtsleeve

    shirtsleeve Rookie

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    Gotta disagree on this one. This is a consumer driven, housing bubble (biggest bubble in history, dwarfs the dot com bubble) inflated economy. Our REAL economy, the industrial one, is long gone. This is just another house of cards waiting to fall. The housing ATM is about out of cash, and with rising interest rates stifling inflation on housing prices any further, I see a BIG crash coming.....
  11. BelichickFan

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    #24 Jersey

    I think that will be the case for the (I think) small percent of people who got the weird interest only type loans. My impression, and I could be wrong, is that most people used the low rates not as an ATM but, like me, refinanced their fixed loan to lower rates and, sometimes, shorter terms. So rising interest rates are irrelevant to them. Their house values could go down but so would the replacement house. But while they stay in their house the monthly savings from refinancing will still be there. For the interest only crew who aren't paying down their mortgage at all and whose houses are worth quite a bit less than they owe, that's an issue but I think that's a statistically insignificant number of people.
  12. mikey

    mikey Rookie

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    Just like everything about Dubai Bush, this economy is also a mirage, a lie.

    Companies continue to outsource good-paying systems programming jobs to India and China.

    Pharmaceutical firms continue to shed workers.

    The auto industry continue to lay off people.

    In their place are jobs in low-paying service sector companies like Wal Mart.

    At the same time, Americans are paying the higest gas price ever, almost $3 per gallon.

    This economy is being sustained by a national debt that is approaching $9 trillion, with no end in sight.

    .
  13. shirtsleeve

    shirtsleeve Rookie

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    Hate to say it, but you are the statistical minority. Granted the interest only and 50 year loan crowd is also small, but many, many people refinanced the equity out of their homes in this bubble and absolutely blew the money. Paid off cards, ran the debt back up, bought cars and vacations, and fed the rampant consumerism of the last decade. Thus they are now up to their eyeballs in short term debt, have no equity left and find themselves upside down on their mortgages due to the dropping housing market. Scary stuff. At the least, the consumer confidence and spending habits are about to hit the toilet, which will exaserbate the housing collapse, which will further stifle consumer spending. Without an industrial economy to bouoy things up, its tailspin time.
  14. BelichickFan

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    #24 Jersey

    I hope you're wrong but I have no reason to think you are other than what would seem like common sense. The lack of savings in this country really pisses me off. Yes, NEM, I know there's a certain amount of people who can't save and I feel bad for them. But there are a lot of people who can and, instead, just buy, buy, buy and then will expect the government to support them through longer lifespans.
  15. BelichickFan

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    #24 Jersey

    Looks like you may be right :

    http://www.usatoday.com/money/perfi/housing/2006-04-03-arms-cover-usat_x.htm

    "To afford soaring home prices, many turned to adjustable-rate and other, riskier loans with low initial payments. The homeownership rate hit a record 70% . . . she never would have been able to qualify for the $57,000 line of credit from a conservative lender. That line of credit, when added to the balance on her fixed-rate mortgage, totaled $10,000 more than her home was worth".

    Then there's these people :

    "When Paul and Sandra Wilson moved from California, where they couldn't afford to buy a home, to Georgia in May 2004, they bought a house with an interest-only loan . . . in less than a year, their loan payment jumped from $2,275 to more than $2,800."

    What the hell kind of house did they buy to have interest only in that range ? Jeez, people, buy what you can afford. Sometimes the people in this country flat out embarass me.
  16. Pujo

    Pujo Rookie

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    The one thing that's not "real" right now and will kill us is all the borrowing we're doing as a country. That money has to be paid back with interest, ya know...
  17. BelichickFan

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    #24 Jersey

    We all agree we need to quit this although the deficit can go way down as the economy grows and tax receipts increase.

    But, yeah, government spending needs to go down. I work for the DoD and would gladly take a 5 year pay freeze IF the rest of government spending took the same freeze. That includes the sacred cows like social security and medicare. Everything.

    But government spending isn't something we individually can control. Our own spending is and we need to be responsible about it.
    Last edited: Apr 3, 2006
  18. Pujo

    Pujo Rookie

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    I just don't think you can make an honest argument that the economy is doing well without the debt we're taking on being the elephant in the room.

    Borrow money to start a war (a war uses lots of materials, creates jobs, and stimulates the economy) while borrowing money to cut taxes, and remove costly, though sometimes needed, environmental regulations and economic output will be pretty good for awhile. Then once Bush is out of office and the bill comes due, who's going to be to blame?
  19. BelichickFan

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    #24 Jersey

    Well all I can worry about is my own situation as my CA vote won't change the governance of the country. I buy what I can afford and not until I can afford it. I max out my 401K and the stock market keeps going up. That's all I, as an individual, can do.

    But, sure, government spending needs to go way down. One thing I'd do is stop all assistance to states and let the states pay for what they want. That would result in a federal tax decrese and state tax increase but would move the spending more to where it belongs.
  20. Pujo

    Pujo Rookie

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    Yes indeed. Right now, each time the money passes hands (from the Feds to the states, from the states to agencies, etc) a big chunk seems to be missing. The feds love it because they can use the purse strings to control the states, like they did when they threated to withhold highway funding from states who didn't adopt a .08 legal limit for DUI.

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