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The economy is improving but unemployment . . .
- Thread starter billwald
- Start date
Companies are slow to hire when the economy rebounds. A corporation may lay off hundreds or even thousands at a time but they will hire slowly as things begin improving.
It is also cheaper to pay a current employee time and a half than it is to hire a new employee with full benefits.
There is a myriad of reasons unemployment is the last thing to rebound after any rescission.
Here is visual example, Reagan signed the Economic Recovery Tax Act of 1981 into law on August 13, 1981. However, unemployment still rose and peaked at 10.8% percent in December 1982 which was more than a year later. The GDP grew at about 3.4% per year under Reagan but it took 6 years for the unemployment rate to drop to 5.5% when Reagan left office.
Unemployment is always the last number to recover.
It is also cheaper to pay a current employee time and a half than it is to hire a new employee with full benefits.
There is a myriad of reasons unemployment is the last thing to rebound after any rescission.
Here is visual example, Reagan signed the Economic Recovery Tax Act of 1981 into law on August 13, 1981. However, unemployment still rose and peaked at 10.8% percent in December 1982 which was more than a year later. The GDP grew at about 3.4% per year under Reagan but it took 6 years for the unemployment rate to drop to 5.5% when Reagan left office.
Unemployment is always the last number to recover.
Interesting.
You think maybe Americans have learned that it is a bad plan to buy toys on credit? If so, have we established a new temporary level of consumption? Will people start saving until they can pay cash as was done for the 6000 years before credit cards were invented?
You think maybe Americans have learned that it is a bad plan to buy toys on credit? If so, have we established a new temporary level of consumption? Will people start saving until they can pay cash as was done for the 6000 years before credit cards were invented?
Actually, this is not true. Credit has always been with us. Generally we held each others credit. Jesus spoke many times about people owing others. Farmers have always used credit at their suppliers which they pay when the crops are harvested. Credit has been part of life for an awful long time.
That is the reason for Farm Aid. My parents were farmers during that same time and were doing well because they did not borrow money. Those who lost their farms were typically those who inherited their farms but reach a point of greed where they wanted more.
Martin Luther
New Member
Our leaders are lying to us, there is no improvement it is just the opposite. We are on the verge of a total bank collapse. Rumors are circulating that the powers that be are about to reflate the US dollar there by destroying any power that the Chinese exert.
The stock market is a pretty good indicator of where we are going and it is showing positive signs. There are some great bargains out there. In fact if you had carefully begun buying in the winter you could be sitting very happy at this point in time. Do you homework, this is a golden opportunity. There are not many like this in a lifetime.
The economy is in an artificial "improvement". You can't flood the market with borrowed money and freshly printed money and expect the "improvement" to be real. You can dress a homeless man in an Armani suit, give him your credit card for the day, and let him drive around in your Bentley...but at the end of the day all the "improvement" he saw was fantasy.
Martin Luther
New Member
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Martin Luther
New Member
We disagree on some doctrine but your view of economics shows wisdom. The banking system completely broke last September and should have collapsed. However, the communist that run this world flooded the system with trillions of paper dollars. The Chinese and others have grown weary and have lost patience with the dollar. The entire world is about to learn the value of real money.
I hope you get a commission for talking up the economy for the Obama administration.
Let me clarify: If a person is on the verge of not being able to pay their bills....and they go out and borrow a pile of money.....for a little while, they appear to be "better." They might even go splurge for an iPod. But at some point...it catches up with them. You cannot borrow your way to prosperity.
Bush couldn't, and Obama can't.
(of course, this post of mine does ignore that Obama will not let this country fail...because he is the chosen one...)
Check the stock charts on the following stock and how they have done this year and tell me I am insane:
F
FEED
ZOOM
JVA
ABAT
I could give you a few more, but I believe these prove my pont that there is opportunity in this market, but you have to do your research! If you want to know how I conduct my research to determine what is a candidate and what to avoid. But, trust me, we are now at a point in time where it is a golden opportunity
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Martin Luther
New Member
It does not prove anything. It shows me that there are a lot of people who invest that cannot grasp basic economics. If everyone was jumping off a cliff you would be one person telling me that it must a good idea and using the thousands of jumpers of proof of your assertion. You could double your stocks, but when a loaf of bread costs you $12.00, will you still believe you invested wisely?
A couple of starting points for you education would be to read the book Creature From Jekyll Island by Edward Griffin. Also, you will learn much by simply Googling fiat money and its history. Good luck.
If you look back through investing history you will find that when the majority feel as you do, that is the time to start selectively buying. When people with your attitude find the economy is going great, that is the time to start selling.
No, if everyone is jumping off a cliff, that is the time not to jump. In economics and investing the majority is always wrong.
Martin Luther
New Member
As a microcosm of investing that is an okay rule of thumb. One major issue today is fraud. A stock can rise and fall on ONE positive or negative news story. No one cares about facts or economic fundamentals, only the perception of something. Judging public perception is what it takes to be an insane stock investor. The preverbal elephant in the room is the building block of the global economy, the paper dollar. It is rotting beneath our feet. Any perception of economic recovery is just the song of the siren as we disintegrate on the waves of paper money. There will be no recovery. The greatest period of human suffering is about to begin, I suggest you prepare. Only tangible assets will hold real value. (Property, food, raw materials, etc)
As long as you remember it was Bush who got the TARP passed and bought the banks then you may have a point.
However, how do you feel about all those 401k's that would have completely wiped out? It was the republican's who told us we can better mange our money so get a 401k and forget about social security. Had the banks been allowed to fail, millions of retirees would have had to find work and millions ready to retire would have had to keep working.
I don't agree it was the tax payers responsibility to save from the crises but it was the lesser of evils in this case.
Martin Luther
New Member
http://news.goldseek.com/GoldenJackass/1249628400.php
A government should never steal money under any circumstance.
If money is so worthless and gold is so valuable then why do all the advertisers want to trade my money for their gold?
The world was on a gold standard for most of 3000 years during which 90% of the population was working poor and NEVER had any gold. It was only after the gold standard was dumped that the working class got easy access to credit and the middle class exploded in size.
The world was on a gold standard for most of 3000 years during which 90% of the population was working poor and NEVER had any gold. It was only after the gold standard was dumped that the working class got easy access to credit and the middle class exploded in size.