Recovery Killer?

RE: RO in RENO
"If anytime recently you bought some screws only to have your power driver rip their little heads off you know what I'm talking about, in short you can no longer get a good screw in this country. And regardless of the purchase price it was a waste of money."

I had to really laugh at this comment "in short you can no longer get a good screw in this country." Because in all actuality...that is exactly what we are getting in this country!!!

???Only banks can loan money they don???t have and charge interest for it. Because the elite who own
the banks made it a policy that the bank can loan 10 dollars for every 1 it actually has.
That is what created the current financial mess or as they say problem with liquidity.
They created the problem by loaning money they did not even have to loan.
Dishonest usury is what it is.

Full disclosure of banking policies would be nice lets have it all put on the table for every one to
see just how corrupt they are taking food and housing from people who work hard while they sit
in there penthouses reading about bank bailout's. No don???t feel sorry for them feel sorry for the
people who are being crushed under there feet from the dishonest usury.

Most people had to give a down payment before 2004 for a home and if you where considered
risky you had to give a bigger down payment.
For example
on a loan of 180,000 with medium to low risk you would fork out 7000.00 to buy a home.

Now what does that translate into for the bank.
The banks can loan 10 dollars for every 1 dollar they have and charge interest for the loan.
win - win for the bank
1 = 10 for them right off plus interest
7000 = 70,0000 plus interest
then you have a payment of 750.00 or so with interest on the loan
750.00 = 7500.00 plus interest per month as you pay in for them
1 year of payments = 90,000 plus interest for them to loan to others.
so if you put 7000.00 down and finance 180,000.00 they get repaid in one year with a payment of
750.00
Sounds strange but remember 1 dollar is as good as ten to them for every dollar they take in they
can loan 10
So don???t feel sorry for them and bail them out. Bail out the public who just keeps paying not
knowing any better.

If you paid a down payment on your house and then you paid on it for even a year you paid it off
in the banks books. 30+ times over if you paid for 30 years.

After the first year they use your money to pay there salaries of 22 million for 22 days on the job what a joke.

Not intuitive to me.

Low prices and no jobs does not sound attractive to me. Corporate greed is a constant, but the government's stupidity in playing along with it is amazing Bush & Co., by constantly saying, "The fundamentals are strong" and then changing their tune to, "It's a CRISIS!" has made this situation far worse than it had to be. Thank God those idiots (yes, I voted for them) will be gone soon. Obama has a good idea. Instead of giving everyone money, so we can pay off our credit cards, he wants to do public works projects. There are many that need doing, and they are costly. That's a smart way to keep people at work, which in turn keeps all of us at work, while making lasting improvements that help everyone.

It seems far too many depend on the American consumer, as the article noted economies everywhere lurched downward. That coincided with the stop in American consumer spending.
I doubt there is any real opportunity for change at least any sustained change. The whole point of Globalization was to put American workers at the same income level as China or India and it is indeed working.
The problem is there is no means of generating income that will support the broader middle class. Income that at one point was generated by manufacturing and is now all but gone.
With 28% of Americans now below the poverty level, they will of course still buy food and the necessities but little beyond that.
It seems from much of what has been written about the housing crisis, that our economy has been based on housing for at least the last eight years, people used the equity in their homes to maintain their life style and buying habits until it was very simply sucked dry it was indeed a temporary economic model.
If housing prices were to increase so people could borrow more is ludicrous but it has been suggested. It would be at best a temporary fix
A second stimulus package is a very temporary fix that would benefit China s much as anyone in this country.
You cannot run a business with a never ending negative cash flow and you cannot run a country with a never ending negative cash flow and for some strange reason no one seems to get that.
But the Republican economic wizards have proudly announced there is no turning back, American will never be the same and certainly not for the better.
Welcome to the third world lifestyle.

It stuns me that we had a primer on what NOT to do with a country and its money supply in the 1920's and 1930's and we went ahead and did EXACTLY the same thing! And of course business and "corporate greed" are taking it on the chin just like they did then. But it's the government itself and the Central Banking system run by a bunch of idiots that brings about crises like this because it does support individual greed instead of letting a market allocate sensibly. Everyone got drunk on the easy credit, everyone got a new car and a new 78rpm record player (ipods today), and a new ice box (stainless steel coordinated kitchens), etc etc etc. And we went down the crapper. And our own government kept dumping more money into the supply, eroding our savings, creating inflation, and tossing easy money out inf front of people, spirring them on to consume, Consume, CONSUME. And now the bubbles are bursting, not just dot.coms here, housing bubbles there, the whole damn economy was turned into a bubble.

The best thing to do is let it burst and we'll regroup within a two years. Force anti-deflationary policies and endless Work Programs and price floors and ceilings just like we did in the 30's and this will most certainly go on for a decade or mor like it did then. Nobody had the motivation to invest because everything was socialized and no one was willing to invest in anything that had every chance to be Nationalized the next day, or invest in an industry that was going to clip you with Federally Socialized Labor battalions. And where is our Nazi Germany going to be to give us an excuse to go to war and try and pull us out of our swoon via a War Economy? It won't happen. So let's let the bomb our splendid government made go off once and for all and let's pick up the pieces afterward. Letting the dunces who got us into this try and "lead" us out will only make us a starving nation like the 30's, with no hope at all.

LEARN from the past, don't repeat it.

Don't listen to the economic dunces at Newsweek. Ask yourself "are they really this dumb to have not learned from the past, or do they WANT me part of the starving, State dependent hoard? Why?"

But I doubt anyone has learned their lessons. Especially when you have the likes of Newsweek reporting the EXACT opposite of what reality has previously shown. Socialists will take us down the rabbit hole again, just like they did in the 30's.

What happened so suddenly in september is the collapse of the commodities bubble. We all saw that coming. And the concerns in this piece have more to do with large purchasing decisions which will be put off during a period of long drawn out deflation. That doesn't need to happen. If the government would stop cutting interest rates and trying to bailout homeowners, we'd get the price correction thats long overdue over a short couple of weeks and then we can get back to growing the economy again.

We are making the exact SAME mistakes that made the depression last so long. Government intervention and fearing deflation. Right at the beginning of the depression steps were taken to avoid deflation and that is exactly WHY the depression lasted as long as it did.

And GREED didn't bring this about directly, humans have ALWAYS been greedy, it's ever present. So what brings about crises like what we are in, and it's Grandfather, the Great Depression? Rotten monetary policy. Free money. Dumping endless money into the system, credit a breeze to get. Who controls this? The Federal Reserve - a quasi-governmental agency that even moreso today is used for the expediency of the government, not the people. So in some respects it WAS greed, greed for power by politicians who have stolen sound money and use it as means to solidify their positions.

We need massive deflation. We need to get back to where the costs of items are where they were in the
50's and 60's. Two to three thousands dollars for a new car. Gas $40 cents a gallon, A new home for $25K
and keep our wages as they currently are. That way everyone can afford to live the american dream not just the rich and greedy ones. Inflation has been out of control because of world wide GREED for the last 3 decades. And no you are seeing what the rich and greedy have brought us too. Poor people lets take over the country and take back what is ours, we are the ones that have worked,sweated,and bled to build this country.
And the rich have just used us, rode our coat tales, all the way to the top because they have no scruples, or
compassion for thier fellow man. God will make them all pay on judgement day.

Deflation is a sign the economy is under stress. It is not a stress to the economy any more than a cough is a stress to a person with a cold. When the economy is responding to a situation in which assets are over valued by adjusting values downward one should expect prices to decline. When assets decline in value the holders of those assets will lose in the value of their wealth. The market must be allowed to adjust and someone has to pay s

This story is complete BS. The idea that we need prices high is a lie. If prices go up again it will help no one but the producers. Producers that now have monopolies created by factions within our government. The consumer won't be able to make purchases and prices will have to go down again to stabilize the economy. The problem now, as was then is that there is no money flowing. Greedy people and Mega-business are holding the money, squeezing the rest of us. 5 percent of Americans hold 95 percent of the wealth. They are not spending or investing. They also pay far less tax than they should, so the govt. has less to spend. The government budgets have been slashed, the only money they spend is going out of the economy and staying out. The businesses that are making record profits like oil companies are international businesses that draw money out, but do not reinvest in the US economy or it's workers ( ironicly they do enjoy the protection of US military). They also are not adding to the tax base. Many military contractors that are the benefactors of US spending are also "offshore companies" that are not moving the money back into the US. The problem is exacerbated by the fact that the banks are holding money, not loaniing or investing, so once again nobody has the resources to create jobs or opportunity (except the biggest corporations which are consolidating and cutting jobs or choosing to hold on to what they have). Banks are getting massive tax breaks so they are not adding to the tax base. Like it or not the government needs to spend for the economy to function properly. That's how we came out of the Great Depression. However they need to create jobs or spend on sectors that will in turn create jobs and invest in the US, as well as companies that will actually pay taxes to keep the economy rolling. This story is a bunch of disinformation BS- likely a cover story planted by the oil companies. Don't fall for these LIES! There is truly a cause and effect relationship going on here, but the author has it backwards. The price of oil was inflated by the actions of speculators not global demand. Banks' financial problems were brought on by their own misteps. Real estate speculators in collusion with lenders, builders and appraisors created the housing crises. Government spending on the wrong things, making interest payments to international banks and cutting taxes has compunded the lack of money flowing through the system. Mr. Bushes deficit spending has lowered our credit rating and depressed the value of the dollar. Deflated consumer prices is not the problem. Never was.

Energy Independence needs to be included in the realm of our economic issues. Our dependence on foreign oil impacts every aspect of our society and economy. This past year is a testimony to that fact. Jeff Wilson has a great new book out called The Manhattan Project of 2009 Energy Independence NOW. I highly recommend this book to anyone interested in seeing our country become more energy independent.