Restocking did contribute to an uptick in the GDP, a little of the stimulus which went to states eased some of the unemployment and the Census hiring upped consumer spending, and held off higher unemployment.
China's economy also contributed to the World economy and the U.S. exports of coal, heavy equipment and raw materials added enough to offset some of the major downturn in the U.S. Probably keep us out of a depression.
Your statement of "We are at an all time high of poverty and joblessness." is of course true. GM is building a new plant in Mexico with 5,000 workers. Caterpillar is expanding production in So. American. Intel is moving or expanding manuf. in Eastern Europe. To build a new major manufacturing plant for high tech. chip production in the U.S. cost 1 billion dollars of additional due to government regulations, taxes, permits and environmental studies. It also takes 3 to 6 years longer. For the same plant in say Mexico it cost 1 billion less in labor, material, land and construction cost. Add the two together and that's 2 billion dollars. Hell even Government Motors is spending your tax dollars wisely here!
I own more than 50 different positions in the stock market. By reading the 10K reports most of the corp.'s are international companies. Almost all have expanded their International operations overseas while reducing or holding steady in the U.S. If companies determine there is less risk investing in Mexico (a narco state), eastern Europe or the banana Republics of So. America rather than the U.S. then there is something definitely wrong.
you can't find a job, are losing you're house or just can't cope with the times.
The great recession was over a year ago. What's wrong with you?
...then I think just maybe that's not because of a couple people who are too lazy to look for a job.
and I would have to say many in the realestate business and stock market business have found the unemployment line
reasoning being because these were the things that were part of the root cause of the situation we are in now.people just were'nt buying homes since they had no jobs and banks were not lending money
also the airline industry has less employed because of the past 911 tragedy
Whats Going with Real Estate and the Global Recession?
Now it can be said – the US is officially in a recession, and other countries around the globe are very quickly following suit. Predominating the country’s financial headaches is the real estate meltdown, or subprime crash, as experts call it. The question being asked is, was overinflated real estate the cause of the US and ultimately the global recession? If so, how?
New York Times economics columnist David Leonhardt explains it this way: In 1998, Wall Street started making it easier for home buyers to apply for loans, and packaged those loans to global investors as CDOs, or collateralized debt obligations. To make these investments even more enticing, Wall Street introduced the idea of subprime mortgages - ARM (adjustable rate mortgage) loans with high interest rates packaged in the guise of low initial interest rates.
High interest rates for the borrowers meant higher returns for the investors, while low credit score borrowers now had the opportunity to buy homes despite their normally unacceptable credit picture. The lax lending policies allowed people to borrow as much as 50% more than the real value of the house with a minimal down payment even as the high interest rates pushed prices up, resulting in grossly overpriced home prices. A case in point is San Francisco, where the median home price is currently 11.6% of the median annual salary.
Investors sought to accelerate their earnings by borrowing funds to invest. The extremely high loan interest rates caused many of the borrowers to default on their loans, and as home prices reached the point where borrowers couldn’t afford to pay their loans anymore and people stopped buying because prices were just way too high, the financial village came toppling down, one by one in a domino effect.
First to fall were Fanny Mae and Freddie Mac, the country’s two largest mortgage finance lenders that had bought the loans from the mortgage originators, repackaged them as mortgage-backed securities, and sold them to the global investors. Next came the banks and investment companies with heavy exposures on these sub prime loans such as Bear Stearns and Lehman Brothers, and as the banks fell so did the global investors who had invested in these mortgage investments. As the companies fell, investors panicked and engaged in a wave of selling, causing the stock markets to crash.
Industry insiders say that unless the number of foreclosures goes down, home prices will continue to decline and it will take longer before the real estate crisis bottoms out.
-- Modified on 9/21/2010 12:42:23 AM
-- Modified on 9/21/2010 12:43:53 AM
you don't realize that it is DEMOCRAT policies, championed by noneless that Buttcrack Obama that is AT THE CORE of our current distress.
http://www.youtube.com/watch?v=usvG-s_Ssb0
They are so bad they put the country in a recession over a year before he was elected!
I don't understand the Republicans get off telling LIES!
The recession has been over for a year. So guess what President Obamas policies are WORKING!
Toward the end of last year, we saw a brief and very small expansion of the GDP, which is what this 'announcement' is purely based on. The expansion was due to two factors. One, the asinine stimulus money that injected cash into the economy for short term make work projects. The second, was the fact that many businesses delayed spending on big ticket items. As businesses restocked inventories, the increased spending resulted in wht appeared to be an expansion in the GDP. But it was only short lived, did not translate into new jobs, and had no impact on the overall economy.
We are at an all time high of poverty and joblessness. Explaining it away as laziness just doesn't wash.
Restocking did contribute to an uptick in the GDP, a little of the stimulus which went to states eased some of the unemployment and the Census hiring upped consumer spending, and held off higher unemployment.
China's economy also contributed to the World economy and the U.S. exports of coal, heavy equipment and raw materials added enough to offset some of the major downturn in the U.S. Probably keep us out of a depression.
Your statement of "We are at an all time high of poverty and joblessness." is of course true. GM is building a new plant in Mexico with 5,000 workers. Caterpillar is expanding production in So. American. Intel is moving or expanding manuf. in Eastern Europe. To build a new major manufacturing plant for high tech. chip production in the U.S. cost 1 billion dollars of additional due to government regulations, taxes, permits and environmental studies. It also takes 3 to 6 years longer. For the same plant in say Mexico it cost 1 billion less in labor, material, land and construction cost. Add the two together and that's 2 billion dollars. Hell even Government Motors is spending your tax dollars wisely here!
I own more than 50 different positions in the stock market. By reading the 10K reports most of the corp.'s are international companies. Almost all have expanded their International operations overseas while reducing or holding steady in the U.S. If companies determine there is less risk investing in Mexico (a narco state), eastern Europe or the banana Republics of So. America rather than the U.S. then there is something definitely wrong.
his bad decisions and poor leadership
President George W. Bush’s policies bear responsibility for the deficits the nation faces over the decade
the fact remains: Together with the economic downturn, the Bush tax cuts and the wars in Afghanistan and Iraq explain virtually the entire deficit over the next ten years
Everyone rails against it but no one has proposed a viable solution besides tax cut and trickle down voodoo.
Have any original ideas, SinsofTheFlesh?