Don't give him ideas. Maybe he'll tell them they didn't earn it and help himself to it.Originally Posted by IconOfEvi
Thats a lot of money Obama could be using to say he fixed the debt
Economy lost more than 200,000 small businesses in recession, Census shows
Recent Market Patterns Suggest An Extremely Severe Downturn Is On Its Way
We're headed for a depression? Great....beer me.
How is your housing market doing at the moment. Has the correction started to even out?
It is still pretty bad over all. You can Google a bunch of different articles.
That will cost you 4,678 dollars
Consumer Spending Stagnates as Americans Save More
"Consumer spending in the U.S. stagnated in June as labor-market weakness prompted Americans to use the biggest gain in incomes in three months to build savings."
sounds like Americans know more about the economy than their elected leaders. Savings = growth.
not really. you cant just save up a bunch of money like the banks. by not spending they are further reducing demand for goods and thus reducing the incentive for businesses to expand. the flow of money is very very important in the economy. money flows from three sources, govt, banks, and consumers. the banks are already not lending which is bad news for businesses/startups/etc since they can get their funding for investments. the govt is lowering interest rates to try and further pursuade banks to start lending, but the banks are finding it more lucrative to just save up that super cheap money. that leaves the consumer. if the consumer stops then all hope is lost.
Savings equals growth only if the banks you deposit your money in loan it out to others; something they have not been doing lately.
So, what's the problem then? Banks or people i mean, not people but consumers?
"Saving" does not necessarily mean holding money in the bank, it can also mean that consumers are paying out their credit debts instead of spending on credit as usual. I dont know if this is the case, but it would be nice if it was.
Also banks not lending money can be a positive outcome, considering how loose and dangerous lending rules were before the 2008 crash. The Fed can set the rate to 0% and it wont to squat, since the market is effectively correcting itself. Interest rates were way too low for years, and were key to the crash since all kinds of bad loans were given out with cheap money.
The economy MUST go through a real recession and must liquidate bad loans and business, otherwise we are prolonging this moment via artificial govt-induced measures.
Not to mention sitting on all this real estate that they refuse to part with because its worth more on paper than it is in reality.
Actually, Timmy Geitner has prevailed upon the large financial institutions with big holdings of foreclosed properties *not* to dump them. That would drive real estate prices down further, further weakening the economy and The One's reelection prospects.
Whoever wins, I would expect to see a selloff begin after the election. They will not dump it all at once because they do not want to crash real estate prices, either. But I think they will start a steady, slow disposal of the backlog. Cities are starting to sue banks because they are not taking care of 'distressed properties', and the cities will be winning most of those lawsuits. The banks are not going to just sit back and be bled like that, and they cannot afford to take care of their huge property holdings, so they will have to be sold.
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