"We are in a Recession"

Discussion in 'Economy' started by Toro, Dec 24, 2007.

  1. Toro
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    Toro Diamond Member

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    I don't know if he is correct or not, but I do know that Bill Gross is one of the most respected money manager in the fixed income markets on the planet.

    http://www.ft.com/cms/s/0/6a7a056a-af37-11dc-880f-0000779fd2ac.html
     
  2. Toro
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    Toro Diamond Member

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    oops!
     
  3. doniston
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    doniston Member

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    What do you mean OOPS? If I understand you correctly, you are saying that we are in deep DODO. I agree. and It's going to get much worse before it ever gets better.
     
  4. bush lover
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    bush lover Member

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    Our Vice President Cheney, when he was CEO of Halliburton, bought competitor Dresser Industries and shut down all of their factories and fired 10,000 lazy bums! He has proved that he is a briliiant businessman by eliminating his competitors! And I trust our Vice President Cheney when he says deficits don't matter! He is a brilliant businessman. So all of the socialists who are against deficit spending can move to Cuba!
     
  5. Toro
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    Toro Diamond Member

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    I can't tell if you're serious or not.

    Deficit spending is very much a Keynesian/left-wing idea in economics. Thus, perhaps Mr. Cheney should think about taking up residence in Havana.
     
  6. Toro
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    Toro Diamond Member

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    I posted the wrong thing in this thread.
     
  7. BaronVonBigmeat
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    BaronVonBigmeat Senior Member

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    If the fed brings interest rates back down to 3% though, won't that fuel inflation even more? I mean they lower interest rates by creating new money, yes? And just because they lower rates doesn't necessarily mean that it will work to revive the economy, if the fundamentals are bad enough, people and businesses just won't borrow money at any rate. The old "pushing on a string" analogy.

    The more I read about things, the more they sound like a sequel to the stagflation of the 1970's. Several years of hatching expensive new welfare and warfare programs, followed up by simultaneous inflation and stagnant economic growth. If they try and relieve the recession with lower rates, we get even more inflation; if they tighten up as Paul Volker did in the early 80's, the dollar stabilizes but you have a recession that's extra nasty.
     
  8. midcan5
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    midcan5 liberal / progressive

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    Recession, seems no one knows, economics is farther from science than witchcraft sometimes. The NYT had 6 points of view last week and in the end it was wait and see. The housing bubble is scary as people are losing their homes or leaving them to escape the collection man, at least the internet bubble was only about inflated stocks. Galbraith's "short history of financial euphoria," should be required reading for all would be investors and the rest of us.
     
  9. Bern80
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    Bern80 Gold Member

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    The houseing bubble is vastly over exaggerated (though perception is reality where markets are concerned I suppose). Mostly people are worried about what will happen with the ARMs. there's a lot of news about them but in terms of the number of mortgages out there and whos in trouble it's a really small number. Roughly 80% of ALL mortgages get paid on time. Only abiyt 30% of all mortgages are also ARMs and when you consider that roughy 80% of people are paying there ARMs on time you see this is not the problem that the media would like you to beleive.
     
  10. doniston
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    doniston Member

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    I disagree. I happen to consider it is much more serious that you would have us beleive. I think it is just the tip of a huge financial iceberg.
     

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