Economic Recovery Is in Peril !!!

Discussion in 'Economy' started by dvinman, Aug 20, 2010.

  1. dvinman
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    dvinman VIP Member

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    Ummm....how many times we were told that the economy is RECOVERING?? LOL! The people who work for our present government are NATURAL BORN LIARS and need to be REMOVED!!!

    Aug. 20 (Bloomberg) -- Stocks, commodities and the euro dropped amid concern the economic recovery is in peril as European Central Bank council member Axel Weber said the ECB shouldn’t withdraw stimulus before year-end.

    The Standard & Poor’s 500 Index fell 0.6 percent to 1,068.92 at 10:19 a.m. in New York, extending its weekly loss to 1 percent. The Stoxx Europe 600 Index retreated 0.6 percent for a third straight decline and the euro slumped as much as 1.2 percent to $1.2673. Oil sank below $74 a barrel and nickel and tin led metals lower in London. Treasuries were little changed after an earlier rally sent the 10-year yield to a 17-month low and the two-year yield to its lowest ever.

    Weber told Bloomberg Television that discussions about the ECB’s exit from stimulus efforts will focus on the first quarter, spurring concern the region’s economy may struggle for the rest of the year. Revisions to U.S. economic growth next week are projected to show the expansion slowed even more in the second quarter, to 1.4 percent from the 2.4 percent preliminary estimate, according to a Bloomberg survey.

    “There’s a bias towards defensive assets,” said Russ Koesterich, the San Francisco-based head of investment strategy for scientific active equities at BlackRock Inc., which oversees $3.2 trillion as the world’s largest asset manager. “Investors worry about the likelihood of a double dip. This is why you’re seeing stocks and commodities under pressure and bonds rallying.”

    Alcoa, Tyco

    All 10 industries in the S&P 500 yesterday retreated today. Alcoa Inc. and 3M Co. fell more than 1.7 percent to help lead losses in the Dow Jones Industrial Average. Tyco International Ltd. rallied 4.2 percent after S&P said late yesterday it will replace Smith International Inc. in the S&P 500 at the close of trading on Aug. 26 as Schlumberger Ltd. completes its purchase of the oil-services company.

    The S&P 500 tumbled 1.7 percent yesterday after American jobless claims climbed more than economists estimated and a Philadelphia-area manufacturing index unexpectedly dropped, data showed yesterday.

    Six stocks fell for every one that gained on the Stoxx 600 index, while 17 of 19 industry groups retreated. BP Plc declined for a fifth day, losing 0.6 percent as scientists said the company’s oil spill created an underwater plume of degrading crude more than 22 miles long that’s migrating across the Gulf of Mexico.

    EADS Slips

    European Aeronautic, Defence & Space Co. slipped 1.7 percent after Nomura Holdings Inc. cut its recommendation on the stock. Dana Petroleum Plc. led rising shares, gaining 6 percent after Korea National Oil Corp. made a hostile 1.87 billion-pound ($2.9 billion) bid for the U.K. explorer.

    German 10-year and 30-year bond yields both fell to record lows after Weber, who heads Germany’s Bundesbank, said the ECB is likely to continue to support banks through end-of-year liquidity tensions before determining in the first quarter when to withdraw emergency lending measures. The 10-year German yield fell as low as 2.26 percent, while the 30-year yield dropped as much as 7 basis points to as low as 2.895 percent.

    The Shanghai Composite Index lost 1.7 percent, the most since Aug. 10, as investors speculated inflation will delay monetary easing. The MSCI Emerging Markets Index sank 0.7 percent, the first drop in six days. Korea’s won depreciated 0.9 percent, declining for the first time in four days, on concern a stalling U.S. recovery may hurt exports.

    The euro fell against 13 of 16 major counterparts. The yen was stronger against 14 of its 16 most-traded peers, rising most against the Norwegian krone, by 0.9 percent.

    Metals Drop

    All metals on the London Metal Exchange dropped, led by declines of more than 1.4 percent in aluminum, lead and tin.

    The cost of insuring European banks’ riskiest debt rose. Credit-default swaps tied to the subordinated bonds of Spanish lender Banco de Sabadell SA climbed 30 basis points to 386 and contracts on Banco Popular Espanol SA, the nation’s third- biggest commercial bank, increased 27 basis points to 393, according to data provider CMA.

    Swaps on subordinated bonds issued by Allianz SE, Europe’s biggest insurer, rose 5 basis points to 87. The Markit iTraxx Financial Index of swaps on bank and insurance company subordinated debt climbed 3 basis points to a four-day high of 200, JPMorgan Chase & Co. prices show.

    Stocks, Oil Fall on Economy; Euro Weakens on Stimulus Concern - Bloomberg.com
     
  2. bugs
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    bugs Senior Member

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    Yep.. The u.s. Economy is Doing GREAT! Just Ask Obama..:clap2:
     
  3. Charles_Main
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    Charles_Main AR15 Owner

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    The truth is there never was a real recovery. The tiny bit of growth and handful of jobs we saw were a result of Stimulus. A fake recovery that is gone as soon as the money runs out, which it is beginning to do.

    The Dems, and Republicans have done nothing to address the real problems with our Economy. All they have sought to do is buy some temporary relief at the cost of Further problems down the road.

    Some of us were screaming about that when they were passing Tarp and all that Stimulus, but nobody listened.

    The basic Problem is Politicians can not see past the next election cycle. Which is why they pass feel good temporary stop gaps, instead of actually fixing the underlying problems and ultimately make the whole situation worse.
     
    Last edited: Aug 20, 2010
  4. Charles_Main
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    Charles_Main AR15 Owner

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    Now the former head of the Bank of England says if the US does not extend all the Bush tax cuts, It could cause a depression in the US.

    Sweet.

    Hope that fucking is wrong because Obama is going to go against the will of the people again and let them expire. Why wouldn't he, he does the wrong thing at every turn.
     
  5. william the wie
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    william the wie Gold Member

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    This looks more like a deadcat bounce than a recover to me but what do I know?
     
  6. code1211
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    code1211 Senior Member

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    Tru' dat. But his record is unblemished in this respect.
     
  7. waltky
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    waltky Wise ol' monkey Supporting Member

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    Biggest threat to the recovery...
    :eek:
    What has economists most on edge: Oil prices
    March 20, 2011 -- The U.S. economy faces numerous obstacles that threaten to derail the recovery. But economists are most fearful of one major headwind: oil prices.
    See also:

    Oil jumps $2 as Libya crisis escalates
    March 20, 2011 -- Oil prices jumped more than $2 a barrel in electronic trading Sunday following escalating violence in Libya, where the military called for an immediate cease-fire after allied forces fired on Libyan defense sites.
     
  8. william the wie
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    william the wie Gold Member

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    Labor force composition is becoming a big issue as to whether there has been recovery. Non-Ag civilian employment - (government civilian employment and government contract employment) = Non-Ag Free Market employment. Even compared to the 1930s this employment measure is about as bad as it has ever been in history.

    Also the upsurge in SSI and Disability payments is also leading to sharpening some of pencils as well. It is too soon to tell what the consensus will be but a shift in statistics used seems to be on the way.
     

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