The recovery shifts into overdrive.

  • Posted by a hidden member.
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    Apr 28, 2010 7:55 PM GMT
    Great news for the American people.
    Not so good for the Republicans who have been hoping for America to fail.

    http://news.yahoo.com/s/ap/20100428/ap_on_bi_ge/us_corporate_comeback

    The link has been corrected
  • EricLA

    Posts: 3461

    Apr 28, 2010 8:42 PM GMT
    Your link didn't lead to an article, but from the headline it sounds like corporations are bouncing back. The problem for main street is the lack of jobs. Until companies start hiring again and reverse the massive amount of jobs lost (and that may likely never come back in their previous form) over this "Great Recession," people are still going to be hurting. It's unlikely enough of the economy will have turned around before November's election. Nate Silver, who does great election analysis, does say his research shows it will be uphill climb for the Republicans to win the Senate, but they will gain several seats in the House.

    Hopefully Obama will have his act together by 2012 and the economy is in better shape at that time.
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    Apr 28, 2010 8:49 PM GMT
    http://news.yahoo.com/s/ap/20100428/ap_on_bi_ge/us_corporate_comeback

    typo icon_smile.gif
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    Apr 28, 2010 11:25 PM GMT
    southbeach1500 saidWe certainly have had a good run in the stock market since March of 2009. And corporate profits are looking good, however most of those are based on resupplying inventories.

    The true measure of recovery will be when unemployment comes down in a meaningful fashion.

    Unemployment is a lagging indicator. I'd say that increasing corporate profits are great news - even if most of it is based on pent up demand... but what I worry more about is rising interest rates which will be a more permanent drag on profitability - not to mention the overall costs writedowns that are projected with the new healthcare bill which will also result in greater hiring friction (people will end up hiring more reluctantly, later and probably less).

    As far as the politics is concerned, people don't get too excited about corporate profitability, they're more concerned about jobs and I suspect we're in agreement there that news like this will not help Obama in the midterms. Practically every job report that I've read over the past month notes that unemployment is persistently and "unexpectedly" higher than anticipated.

    Further, there are new jobs and stimulus bills likely laden with pork and the latest data has most economists suggesting that the stimulus didn't work: http://money.cnn.com/2010/04/26/news/economy/NABE_survey/ . Irrespective of the politics, what this ultimately will mean is that Americans have spent a crap load of money for goods and services that it didn't need with money it didn't have. What you'll be left with is higher interest rates.
  • rnch

    Posts: 11524

    Apr 28, 2010 11:36 PM GMT
    (meanwhile, SB is busily scouring the internet for a GOP spin doctor op-ed piece that he can cut and paste to post on this thread...) icon_lol.gif
  • B71115

    Posts: 482

    Apr 28, 2010 11:43 PM GMT
    economy ... ahahahahahahahahaha ... in ... hahahahahahahahaha ... overdrive ... hahahahahahahahaahhahahahaahahahahahahahaha haahhahahahaahahahahahahahahahaahhahahahaahahahahahahahaha haahhahahahaahahahahahahahahahaahhahahahaahahahahahahahahaha ahhahahahaahahahahahahahahahaahhahahahaahahahahahahahahahaah hahahahaahahahahahahahahahaahhahahahaahahahahahahahahahaahha hahahaahahahahahahahahahaahhahahahaahahahahahahahahahaahhaha hahaahahahahahahahahahaahhahahahaahahahahahahahahahaahhahaha haaha

    Now that IS a good one. Made my day! icon_lol.gif
  • coolarmydude

    Posts: 9190

    Apr 29, 2010 2:05 AM GMT
    southbeach1500 saidWe certainly have had a good run in the stock market since March of 2009. And corporate profits are looking good, however most of those are based on resupplying inventories.

    The true measure of recovery will be when unemployment comes down in a meaningful fashion.



    Denial is not a river in Egypt...

    The economy is directly related to spending. Demand is what is triggering this recovery. It makes no sense whatsoever for businesses to be spending money on "resupplying inventories" if there is no one to buy the inventory. That's added cost in manufacturing and storage!!!
  • Posted by a hidden member.
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    Apr 29, 2010 2:16 AM GMT
    B71115 saideconomy ... ahahahahahahahahaha ... in ... hahahahahahahahaha ... overdrive ... hahahahahahahahaahhahahahaahahahahahahahaha haahhahahahaahahahahahahahahahaahhahahahaahahahahahahahaha haahhahahahaahahahahahahahahahaahhahahahaahahahahahahahahaha ahhahahahaahahahahahahahahahaahhahahahaahahahahahahahahahaah hahahahaahahahahahahahahahaahhahahahaahahahahahahahahahaahha hahahaahahahahahahahahahaahhahahahaahahahahahahahahahaahhaha hahaahahahahahahahahahaahhahahahaahahahahahahahahahaahhahaha haaha

    Now that IS a good one. Made my day! icon_lol.gif


    You're obviously one of the Republicans still hoping for America to fail.
    Not very patriotic.
  • B71115

    Posts: 482

    Apr 29, 2010 5:31 AM GMT
    I don't know of any Republicans hoping for America to fail.

    I do know of a president who is.
  • Posted by a hidden member.
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    Apr 29, 2010 5:35 AM GMT
    B71115 saidI don't know of any Republicans hoping for America to fail.

    I do know of a president who is.


    OOh ooh who?

    Must be that chavez.
  • Posted by a hidden member.
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    Apr 29, 2010 8:49 AM GMT
    The irony is that consumer sentiment is the barometer by which economic recoveries are gauged. The consumer (who had all but disappeared) is spending (though cautiously) again. This tunnel vision that Cocktail Party Pundits have is the alarming bit. The doomsday, tinfoil hat crowd are the same folks that in '06 said Real Estate always goes up. Anyways, nothing is forever, this recovery is no different. Its all a big cycle.
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    Apr 29, 2010 9:59 AM GMT
    Ummm, really? "Recovery"? You must not pay attention to the global economy that much.

    This article is discussing a very focused and narrow perspective, which is pretty much BS anyway. The middle class is no longer the consuming class, nor will it ever be again; the middle class will vanish and merge into the lower/labour-oriented class. The upper 10% already consume at 40%, while the middle 70% consume at 46% and the lower 20% consume at 14%.

    Consumption is changing in terms of the underlying social foundations. Also, there is no recovery, it's an illusion, and corporate America is not coming back. When companies stop outsourcing and come back to America and create an industrial and manufacturing economic base that pays well and provides workers rights (which will never happen), then you can talk about "corporate America coming back."

    We are on the verge of a global debt crisis. What's happening in Greece is going to spread - through Portugal, Spain, Italy, Ireland, the rest of the euro-zone nations, the U.K., Japan and all the way to the United States; this is a GLOBAL debt crisis, which will make the housing crash of 2007/08 look like a walk through the park.

    The derivatives market has not been subject to ANY reforms or regulations or changes, thus, as countries collapse under their debt burdens (which were rapidly accelerated and exacerbated through bailing out the banks), major hedge funds and global banks (which were bailed out), will use that bailout money in the derivatives market to cause capital flight and bet against nation's debts, as they are doing in Greece, thus further exacerbating the fiscal crisis.

    Countries of the west will be forced to impose "fiscal austerity measures" to attempt to reduce their debts. "Fiscal austerity" means rapidly increasing taxes, drastically cutting social spending, and increasing interest rates, causing inflation. The rest will be as it has been throughout the Third World as the west has been doing this to them since the 1980s debt crisis: the public sector will be devastated, massive layoffs in education, health care and social services; people will be forced to retire at an older age, taxes will dramatically increase; thus, you have an enormous amount of newly unemployed people paying much higher taxes. Poverty becomes widespread and all-encompassing. This is the 'default' of the middle class. As interest rates rise, payments on debt rise; an entire generation of students and new graduates will go into the worst job market in history and will be forced to take on labour and services jobs, desperately attempting to pay student loans they will never lose. With the average American family in roughly 38,000 debt, they too, will default. The middle class will vanish.

    This is the Post-Industrial Revolution. The Industrial Revolution created the nuclear family, and the post-industrial revolution will deconstruct the nuclear family, as there is no way that a small family will afford a house; the statistics are already showing a noticeable increase in the trend of having multi-generational families living under one roof. Suburbia will alter, as lawns will be replaced with gardens for food, since inflation will make food so expensive. Food and fuel are the key indicators if dramatic inflation.

    Further, as a result of "fiscal austerity", the government will rapidly privatize state assets; highways and roads will be privatized, bought up by multinational corporations that install tolls on the roads, while the entire infrastructure and resources of the nation are sold to banks and corporations for pennies on the dollar. The currency will be devalued, leading to inflation, but also making it cheaper for multinational banks and corporations to buy up all the assets. Then there will be, as there has always been in these cases, a "liberalization" of markets, meaning that foreign capital, i.e., the major banks and corporations of the world, will find it increasingly easy to move capital in and out of the nation. The derivatives market will flourish as banks and hedge funds can quickly move capital in and out of a country, betting against its currency and fiscal situation, which will allow these banks to make a profit on the destruction of nations.

    Good thing we bailed them out!

    For the life of me, I can't understand why people keep listening to the SAME people who have proven themselves NOTHING BUT WRONG in the past. All the people who "didn't" see the crisis coming, are the ones saying we're in a "recovery." These people have been, in the least, completely ignorant, or at worst, purposefully misleading and deceptive. Many of the KEY individuals from the Clinton administration who were instrumental in creating the conditions and facilitating the systemic problems that created the crisis, were then brought in to "solve" it under Obama. So the people that CAUSED the crisis, are now in charge of the "solutions". These people have done nothing but fight tirelessly for the rights of global bankers to screw the people.

    This isn't a partisan issue, stop focusing on the illusion of "democrat" versus "republican". They are both lying, bought and paid for parties, that fuck everyone over and are owned by the same financial oligarchy.

    Maybe, and perhaps this is just me, but maybe... it would be smarter and more... accurate.... to get your information on the economy from those who accurately predicted the last crisis. What are they saying? Rogoff, Stiglitz, Simon Johnson, William White, et. al. They're talking about a global debt crisis and resulting "fiscal austerity". They are talking about how, fiscally speaking, the United States is a "deconstructed Third World nation."

    So I ask you: what recovery?