oh no....it is the economy stupid

Discussion in 'Economy' started by manu1959, Sep 27, 2006.

  1. manu1959
    Offline

    manu1959 Left Coast Isolationist

    Joined:
    Oct 28, 2004
    Messages:
    13,761
    Thanks Received:
    1,625
    Trophy Points:
    48
    Location:
    california
    Ratings:
    +1,626
    housing sales up 4%

    stock market at record high...almost

    wages up

    employment up

    gas prices down

    amazing what darth chenny can do with one phone call to haliburton
     
    • Thank You! Thank You! x 1
  2. theHawk
    Offline

    theHawk Registered Conservative

    Joined:
    Sep 20, 2005
    Messages:
    10,914
    Thanks Received:
    2,073
    Trophy Points:
    280
    Location:
    Germany
    Ratings:
    +5,804
    Its the GOP conspiracy! :teeth:
     
  3. jillian
    Offline

    jillian Princess Supporting Member

    Joined:
    Apr 4, 2006
    Messages:
    69,560
    Thanks Received:
    13,013
    Trophy Points:
    2,220
    Location:
    The Other Side of Paradise
    Ratings:
    +22,439
    http://www.chicagotribune.com/business/chi-0609100082sep10,1,5965765.story?ctrack=1&cset=true
     
  4. Bonnie
    Offline

    Bonnie Senior Member

    Joined:
    Jun 30, 2004
    Messages:
    9,476
    Thanks Received:
    668
    Trophy Points:
    48
    Location:
    Wherever
    Ratings:
    +669

    Darth Chenny:p: lol
    Yes he wields much power
     
  5. BaronVonBigmeat
    Offline

    BaronVonBigmeat Senior Member

    Joined:
    Sep 20, 2005
    Messages:
    1,185
    Thanks Received:
    160
    Trophy Points:
    48
    Ratings:
    +160
    The bolded part is the correct answer, which can be summarized as "Too much cheap money/credit". As in, a glut of money created out of thin air by banks, directed by the Federal Reserve. When you take out a mortgage, that isn't someone's savings account money, it's money created out of nothing.

    After a while, the fed can tighten up (recession), or let things go and we get inflation. We had already just come out of a bubble in the late 90's for the same reason (the dot-com bubble), and should have had a worse recession about 4~5 years ago. But then the fed decided to create an even bigger bubble instead of letting the previous one deflate. Now we are probably facing an even bigger correction/recession, and inflation to boot, ie stagflation.
     

Share This Page