How Bad Is It???

[Pete_G]

Originally Posted by justplugit

If you have credit cards you are not using, cancel them, as they also fall into play in your credit rating, seen as monies you could still tap.

I've always read the opposite (on the Internet, so who knows) that closing credit card accounts is bad for your credit score.

[BigFish]

Glad things are going good for you Bruce and I hope it continues! Layoff rumors swirling at my wifes place of work.....so we are keeping our fingers crossed here.

[wheresmy50]

The US economy is 2/3 consumer spending, so every gloom and doom news story makes things a tiny fraction worse by causing people to spend less money. Less money spent hurts businesses, who need to lay people off, who spend less, and the cycle continues.

Just like how every media COMPANY this summer was parading faux experts predicting $7 gas by Christmas, they're now all throwing around the word "depression" when we're not yet even officially in a recession. Bad news sells. We were hearing how bad the economy was when the dow was at 14,000 for Christ's sake.

I'm not saying we're not in a slowdown, and I'm not even saying things aren't worse than they were earlier in the year.

My point is this - the worse you think the economy is, the worse it will get. If people start keeping money in their mattresses, we will be in a depression, and then at least CNN will be reporting the truth.

The US economy IS diverse and fundamentally sound. This is an over-correction and will pass.

[JohnR]

Originally Posted by wheresmy50

The US economy is 2/3 consumer spending, so every gloom and doom news story makes things a tiny fraction worse by causing people to spend less money. Less money spent hurts businesses, who need to lay people off, who spend less, and the cycle continues.

Just like how every media COMPANY this summer was parading faux experts predicting $7 gas by Christmas, they're now all throwing around the word "depression" when we're not yet even officially in a recession. Bad news sells. We were hearing how bad the economy was when the dow was at 14,000 for Christ's sake.

I'm not saying we're not in a slowdown, and I'm not even saying things aren't worse than they were earlier in the year.

My point is this - the worse you think the economy is, the worse it will get. If people start keeping money in their mattresses, we will be in a depression, and then at least CNN will be reporting the truth.

The US economy IS diverse and fundamentally sound. This is an over-correction and will pass.

Bingo, duck falls out of the ceiling, politician sponsored, media-assisted, greed fueled, economic self-fulfilling prophecy...

We found out yesterday that miy wife will not be among the layoffs at her work that were announced yesterday (yet)

[spence]

Originally Posted by wheresmy50

The US economy IS diverse and fundamentally sound. This is an over-correction and will pass.

Nothing to see here, move along...

Ok Senator McCain

We've gone from a nation that primarily produces to one that primarily consumes and borrows to keep consuming. This isn't fundamentally sound.

-spence

[RIJIMMY]

Originally Posted by wheresmy50

The US economy is 2/3 consumer spending, so every gloom and doom news story makes things a tiny fraction worse by causing people to spend less money. Less money spent hurts businesses, who need to lay people off, who spend less, and the cycle continues.

Just like how every media COMPANY this summer was parading faux experts predicting $7 gas by Christmas, they're now all throwing around the word "depression" when we're not yet even officially in a recession. Bad news sells. We were hearing how bad the economy was when the dow was at 14,000 for Christ's sake.

I'm not saying we're not in a slowdown, and I'm not even saying things aren't worse than they were earlier in the year.

My point is this - the worse you think the economy is, the worse it will get. If people start keeping money in their mattresses, we will be in a depression, and then at least CNN will be reporting the truth.

The US economy IS diverse and fundamentally sound. This is an over-correction and will pass.

That is the most incorrect assesment I have seen on any topic in all my years on S-B. I work for one of the largest financial companies in the world and have seen presentations by the smartest investment people in the world, and they disagree with you.
Lets look at your points. The consumer is the heart of this economy - true. But the consumer is going to foot the bill for the billions in government bailout, the consumer is goign to foot the bill for the local municipalities that are having budget shortfalls, the consumer is impacted by rising unemployment.
So, your advice to the consumer is to keep spending? So who bails out the consumer?

[The Dad Fisherman]

And lets not forget that one of the big manufacturing industries that helped the country grow for decades....is about to fold like a house of cards.

[striperman36]

http://www.boston.com/business/ticke...loyment_1.html

Ouch.

[HESH2]

thinking about all the places my dad and his generation worked at all mfg jobs gone.drive along 95 in ct and see all the old factory brick buildings closed for years.the gun that won the west winchesters and colt gone for years.wow free trade,all mfg jobs to china,usa a consumer nation in the toilet.thank our politicans and keep on thanking them.

[BigFish]

I agree RIJimmy! Wheresmy50 things must be nice in the world you live in! Can I get a pair of those rose colored glasses? Recession has to be the stupidest word/term I have ever heard! I think it was made up by politicians so they can put a pair of those rose colored glasses on everyone when there is a brown pile of crap staring them in the face! Recession as it is known has come and passed in my eyes and we are staring depression in the eyes as we speak!! Not a depression as they knew the one in 1929 but a modern day depression! The mortgage companies get a bailout of 700 billion dollars from the government so they do not go tits up, the "Big Three" are seeking same as they are on the verge of collapse and unemployment is an out of control freight train that is gaining steam and headed for 10% nationally so you better get out of the way because if you do not think that train is coming down the tracks as sure as we speak here it is going to crush you! Might want to pick up a paper, watch the news or better still.......just talk to your neighbors on either side of you.....they may have a different story to tell about how bad it is!

[mekcotuit]

I work for a medium size financial mgmt company. From 2002 to 2008 our assets under management went from 250 million to just about 8 billion dollars this past August. From August to yesterday? we are down to 4.4 billion. I know when I say billions you are thinking huge amounts, but the drop from August is truly frightening in such a short time. Just walking through South Station and on the train you can sense the mood and see the anxiety in people's faces. Obama has his work cut out for him but I think we all need to drop the crap about who's fault it is, he's a socialist, etc and pull together. After all, that spirit of community got the country through the 30's (and 25% unemployment - 1 out 4 workers!!!) even though there are still dip%$%$%$%$s to this day who poo poo Roosevelt and his programs as "socialist"..

[RIJIMMY]

what got America out of the depression was a World War, lets hope thats not whats needed.

[RIJIMMY]

http://news.yahoo.com/s/ap/20081121/...t/intel_trends

[fishbones]

Originally Posted by striperman36

http://www.boston.com/business/ticke...loyment_1.html

Ouch.

Last night they showed a chart on the news that put RI at 10.3%. MA & CT were a little better, but overall, New England is taking a pretty big hit.

[UserRemoved1]

SPOT ON and exactly what I have been saying for a while now.

Originally Posted by wheresmy50

The US economy is 2/3 consumer spending, so every gloom and doom news story makes things a tiny fraction worse by causing people to spend less money. Less money spent hurts businesses, who need to lay people off, who spend less, and the cycle continues.

Just like how every media COMPANY this summer was parading faux experts predicting $7 gas by Christmas, they're now all throwing around the word "depression" when we're not yet even officially in a recession. Bad news sells. We were hearing how bad the economy was when the dow was at 14,000 for Christ's sake.

I'm not saying we're not in a slowdown, and I'm not even saying things aren't worse than they were earlier in the year.

My point is this - the worse you think the economy is, the worse it will get. If people start keeping money in their mattresses, we will be in a depression, and then at least CNN will be reporting the truth.

The US economy IS diverse and fundamentally sound. This is an over-correction and will pass.

[BigFish]

Scott your insane too? This is not a "the sky is falling" scenario......people are having problems and are being impacted even if the roses are still in bloom at your house...but they do not bloom forever.

[BigFish]

I love when people call this situation a "Slowdown"...it tickles me!

[RIJIMMY]

salty, name one area of potential growth? Just one?
Name one industry that is doing well? One?

TO put it in perspective- thinking things were good, spending money you didnt have, borrowing on your house and other signs of "confidence" are what fu*ked us.

This is not a perception problem, this is reality.

[wheresmy50]

People are calling it a slowdown because unfortunately, there is an actual definition for a "Recession", and that hasn't happened yet. It may happen, but guessing what may happen and declaring that something has happened are very different.

RI Jimmy - which part of what I said was incorrect?

The US economy is based on consumer spending. If people stop spending, it will ruin the economy. They were predicting riduculous gas prices - predictions that were wrong. Things will improve. If people actually do stop spending, it will get a lot worse before it gets better.

Do you think the economy will be slow forever? I don't. Did you think it would be good forever when your neighbor who makes $50k somehow bought a $400k house? Like magic, but with consequences.

The US may end up in a recession. It's happened before, it will happen again.

The difference is the coverage. This is the first one since the post-9/11 escallation in news coverage. The news media is not out to serve the public, they're companies that make money based on how many people watch. No different than any other advertising. Their product is the information. The more interesting the information, the more money they make.

[UserRemoved1]

RI JIM there's no perception problem. Medical stuff is through the roof still, values have held VERY well, Athena just announced yesterday they are hiring 400 new employees in the next year in Maine alone. Pharmaceuticals is still doing well. Wireless is still VERY much active and substantial buildouts continue. Solar power is growing every day. As is wind power.

WOOD LURES is a growing industry. I've not stopped building that's for sure. I fill the bins and they empty. It's at least putting food on the table right now.

That's more than one. I could go on and on. This problem has been here for almost 2 years. I know because with my businesses I see the up and downturns alot faster than most guys would. High and low end.

Just because some assclown says everything is bad doesn't mean it is. It's a slowdown. It's probably a recession based on my views of things in the last two years but LIFE GOES ON.

Sitting watching the stock market move 200 points in a minute doesn't mean the world is going to end. There's money to be made out there and businesses to grow. YOU JUST HAVE TO WORK FOR IT. Frig the stockmarket and what these pencil pushers say. I talk to many people every day and it's not all good and rosy but it's not all doom and gloom either.

The economy is what you make of it just like any other day you wake up.

Originally Posted by RIJIMMY

salty, name one area of potential growth? Just one?
Name one industry that is doing well? One?

TO put it in perspective- thinking things were good, spending money you didnt have, borrowing on your house and other signs of "confidence" are what fu*ked us.

This is not a perception problem, this is reality.

[UserRemoved1]

Exactly.

Originally Posted by wheresmy50

People are calling it a slowdown because unfortunately, there is an actual definition for a "Recession", and that hasn't happened yet. It may happen, but guessing what may happen and declaring that something has happened are very different.

RI Jimmy - which part of what I said was incorrect?

The US economy is based on consumer spending. If people stop spending, it will ruin the economy. They were predicting riduculous gas prices - predictions that were wrong. Things will improve. If people actually do stop spending, it will get a lot worse before it gets better.

Do you think the economy will be slow forever? I don't. Did you think it would be good forever when your neighbor who makes $50k somehow bought a $400k house? Like magic, but with consequences.

The US may end up in a recession. It's happened before, it will happen again.

The difference is the coverage. This is the first one since the post-9/11 escallation in news coverage. The news media is not out to serve the public, they're companies that make money based on how many people watch. No different than any other advertising. Their product is the information. The more interesting the information, the more money they make.

[RIJIMMY]

Your assesment that the fundamentals of the economy are strong is incorrect.
Fact - Major financial corporations needed to be bailed out, there still not improving
Fact - the major automakers - employing millions are nearing backruptcy
Fact - unemplyment is rising at an insane rate
Fact - The GLOBAL economy is suffering
Fact - the US has ZERO growth opportunites. Are you expecting a tech boom?
Fact - housing prices still need to come down another 15%
Fact - most 401ks and 529 plans are down 40-60%

None of that is from the media. I dont watch the news. So please tell me why consumers should go out and spend? The definition of a recession is outdated and irrevellevant. Facts are facts.

[RIJIMMY]

salty, with all due respect you're clueless.
"the economy is what you make it" thats brilliant.
Its great medical is doing well, I wonder how many Cobra claims there were last month. I wonder how many will be going to the doctor once they have to PAY to go. Something tells me people will forgo their erections when they have to pay for their Viagra. Its all a cycle Salty, trust me, wait until you see what will fall next.

W50 - you missing on the most crucial component - consumers HAVE to stop spending, they're out of work, their kids college 529 plans are in the toilet, their savings has dried up and their houses are worth less than they borrowed!

[Nebe]

OBAMA

[Backbeach Jake]

We're being sent home early and there were about 4 adds for jobs under general in the paper this am. We're boned..

[UserRemoved1]

RI JIM whatever I'm not clueless no matter what you think. I own 2 businesses and had a 3rd previously. I'm not a dummy. Take care.

[spence]

Originally Posted by RIJIMMY

Fact - the US has ZERO growth opportunites. Are you expecting a tech boom?

What a lame thing to say

Look at the companies that produce oil and gas exploration equipment, they all have 10 year backlogs of orders.

The US has the best environment for innovation, investement and IP protection on the planet...the the world has big problems that need to be solved. Energy technology alone is perhaps a bigger growth industry that has been seen in many decades.

-spence

[RIJIMMY]

Originally Posted by #^&#^&#^&#^&#^&#^&#^&#^&#^&#^&#^&

RI JIM whatever I'm not clueless no matter what you think. I own 2 businesses and had a 3rd previously. I'm not a dummy. Take care.

and the people I am getting my info from are heads of the Harvard Bus school and bank 10 mil a year and have been in the financial industry for 40+ years.

[RIJIMMY]

Originally Posted by spence

What a lame thing to say

Look at the companies that produce oil and gas exploration equipment, they all have 10 year backlogs of orders.

The US has the best environment for innovation, investement and IP protection on the planet...the the world has big problems that need to be solved. Energy technology alone is perhaps a bigger growth industry that has been seen in many decades.

-spence

yes, and with the drop in oil prices, companies will have less to invest, thus stopping research and exploration.
Energy technololgy as growth will no be viable for YEARS, at least 5-10. thats not growth. I stand by my statement.

[RIJIMMY]

"The combination of weaker real activity and slower inflation means that profits of U.S. companies will fall even more sharply than we had previously expected," Goldman said in a note to clients.

Goldman now sees economic profits falling 25 percent in 2009 on an annual average basis, the biggest drop since 1938. It had earlier expected a fall of 20 percent.

Goldman expects unemployment rates to further go up in 2010 as well, as there is little chance of the economy returning to trend growth by that year.

If I think its good, it will be good. If I think its good, it will be good. If I think its good, it will be good. If I think its good, it will be good. If I think its good, it will be good. If I think its good, it will be good.