Reply With QuoteSo how, in your expert economic opinion, does the Euro problem not have an effect on the US?
POTUS Excuses - or Situation Normal
Almost laughable if it didn't affect so many people.
Link: http://www.bloomberg.com/news/2012-0...an-fever-.htmlPresident Barack Obama told campaign donors in Chicago and Minnesota that Europe’s sovereign debt crisis is largely to blame for the slowest month of U.S. employment growth in a year, seeking to counter an issue weighing on his re-election bid.
“We’re not where we need to be; we’re not there yet; you saw that in today’s jobs report,” the president said at a Chicago fundraiser, the fourth of six yesterday in the Midwest. “A lot of that’s attributable to Europe and the cloud that’s coming over from the Atlantic. The whole world economy has been weakened by it, and it’s having an impact on us.”
So how, in your expert economic opinion, does the Euro problem not have an effect on the US?
Because the problem has been around for over 5 years. Don't you get it, the problem was always there right before your eyes. We could go back just six months and the "spin" was that Europe was taking care of the problem and everything was awesome....The only thing that is happening now is that people are sobering to the reality.
There is no doubt in my mind that the uncertainty in Europe is causing jitters in US financial and business communities, US CEO's and CFO's mention Europe a lot in recent statements and interviews so I don't think its a convenient deflection but a genuine awareness that the US is no longer a self reliant bastion of commerce.
Originally Posted by HK in AK
Apple and other large multi-national companies have been sitting on a hoard of cash. Apple has been sitting on almost $20 billion in cash for more than 4 years....prior to that they carried less than $10 billion. I could give you other examples of companies that have been hoarding cash for more than 4 years....Like I said this is not a new problem, it just how you want to spin the story to make it an excuse.
I've read more than once that businesses in the US are sitting on over an even $1 trillion waiting to see what happens when/if the other shoe drops.
Obama isn't the first one to try and sneak it passed everyone.Percentage Increase, 1922-29
Industrial Production: +70%
Gross National Product: +40%
Per Capita Income: +30%
Output per factory man hour: +75%
Corporate Profits: +62% (1923-1929)
"Financial storm definitely passed."
-Bernard Baruch, cablegram to Winston Churchill, November 15, 1929
From Wikipedia "After a one-day recovery on October 30, where the Dow regained an additional 28.40 points, or 12%, to close at 258.47, the market continued to fall, arriving at an interim bottom on November 13, 1929, with the Dow closing at 198.60. The market then recovered for several months, starting on November 14, with the Dow gaining 18.59 points to close at 217.28, and reaching a secondary closing peak (i.e., bear market rally) of 294.07 on April 17, 1930. The following year, Dow embarked on another, much longer, steady slide from April 1931 to July 8, 1932 when it closed at 41.22—its lowest level of the 20th century, concluding an 89% loss rate for all of the market's stocks. The Dow began to slowly regain the ground it lost during the mid 1930s, but it would not return to the peak closing of September 3, 1929 until November 23, 1954."
What was different about the market in 1929 was that the capital collapse was a result of trade policies after World War I and irrational speculation. What is different about today's set of circumstances is that it is about an overwhelming largesse of entitlement and other government spending that is consuming the real economy. An economy that was artificially inflated by the years of growing subsidy that has now reached a point where it is unsustainable. We are at a point where the governmental spending of nations have become "black holes" that consumer wealth.
Last edited by HK in AK; 06-03-2012 at 01:57 PM. Reason: add wiki
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