Wealthy Reduce Buying in a Blow to the Recovery Options

[2old4this]

So the recession is over?

Wanta talk triple dip?

The economic recovery has been helped in large part by the spending of the most affluent. Now, even the rich appear to be tightening their belts.

STORY

[Tipsycatlover]

There is no economic recovery. The wealthy are reducing expenses in a time of overtaxing like everyone else.

[RoBair]

Wanta talk triple dip?

Wanna talk about why you want America to fail? There hasn't been a double dip yet and probably won't be unless you Obama haters talk it down....but you are hoping for a "triple"?

One week the media is predicting the economy is headed for collapse, the next week we're on a strong rebound. It wouldn't be good for business if they just said that economic recoveries take time and tend to fluctuate widely...and that is normal... so don't panic...

Tipsy wets her panties every time she sees a bad report....steady there, Tips....it all depends...

[RoBair]

Wanta talk triple dip?

Wanna talk about why you want America to fail? There hasn't been a double dip yet and probably won't be unless you Obama haters talk it down....but you are hoping for a "triple"?

One week the media is predicting the economy is headed for collapse, the next week we're on a strong rebound. It wouldn't be good for business if they just said that economic recoveries take time and tend to fluctuate widely...and that is normal... so don't panic...

Tipsy wets her panties every time she sees a bad report....steady there, Tips....it all depends...

[marv]

Those "wealthy" aren't all those sitting at home around the fireplace, Robby. MOST are small business owners filing Chapter 'S' income tax returns, like the guy that unplugs your toilet after you use it! They stop spending as much if they don't know if they'll even have a business next year.

[Tipsycatlover]

Those "wealthy" aren't all those sitting at home around the fireplace, Robby. MOST are small business owners filing Chapter 'S' income tax returns, like the guy that unplugs your toilet after you use it! They stop spending as much if they don't know if they'll even have a business next year.

My accountant has already told me to get out. It's time to retire. The new tax filing requirements, aside from the increased taxes themselves, are too much for me to keep up with everything else going on. I'll be buried in paperwork.

He should know. He's already lost 1/3 of his clients who have been taxed out of existence. We will probably move into some type of economy that was prevalent in the old Soviet Union. If you want something done, it will be under the table and in cash. You won't be able to go down to the garage on the corner to get your brakes done. You'll have to find someone who knows someone who fixes brakes on the sneak, buy the parts yourself and he'll do the job in his home garage. Payment in cash, no receipt.

It's being done that way now. It will just become more common by this time next year.

[2old4this]

The economic recovery is weakening in the face of falling home sales and rising claims for unemployment benefits, new data showed Thursday.

Going, going, gone?

[Tipsycatlover]

http://www.cnbc.com/id/38428786

U.S. consumer confidence sank in July to its lowest since February on job market worries, underscoring the slow path to economic recovery, and home prices rose in May but without signs of a sustained rebound, reports released Tuesday showed.



But this is the summer of recovery! SNOBama is going on a nationwide tour to tell us so.

[wwworkingguy]

RoBair Posted Jul 23 2010, 11:43 AM
Wanna talk about why you want America to fail? There hasn't been a double dip yet and probably won't be unless you Obama haters talk it down....but you are hoping for a "triple"?

Gee I seem to remember a a sh!t load of this during the entire Bush II administration.

Talk is cheap.

[Tipsycatlover]

The normal rate of unemployment is 5.6. Under Bush it was 4.2 that the democrats considered too high to be acceptable. At 10% under the mongrel, democrats say "We have a new normal".

[RoBair]

The normal rate of unemployment is 5.6. Under Bush it was 4.2 that the democrats considered too high to be acceptable. At 10% under the mongrel, democrats say "We have a new normal".

A little economic refresher course...

November 11, 2008
U.S. Unemployment Rates Under President Bush Continue to Climb
Posted by Kristina Cowan

U.S. unemployment rates under President Bush have reached 14-year high. According to the Bureau of Labor Statistics, unemployment climbed to 6.5 percent in October, as the country shed 240,000 jobs. U.S. unemployment rates under President Bush have certainly increased--for example, the unemployment rate for October 2007 was 4.7 percent. So far this year, the country has lost 1.2 million jobs, and over half of the decrease took place in just the last three months. Some suggest the situation could grow more bleak: Goldman Sachs projects the unemployment rate will reach 8.5 percent by the end of 2009. Another source I spoke with recently believes it could soar as high as 10 percent in the near future.

With U.S. unemployment rates under President Bush rising, there's more talk of the nation being caught in a recession. In a New York Times story, Stuart G. Hoffman, chief economist at PNC Financial Services Group in Pittsburgh, notes, “The economy is slipping deeper into a recessionary sinkhole that is getting broader. The layoffs are getting larger, and coming faster. We’re likely to see at least another six months of more jobs reports like this.” In a Wall Street Journal roundup of economists' reactions to the unemployment report, Joshua Shapiro of MFR Inc. says, "History tells that once the labor market weakens as much as it has in the past several months, job-shedding takes on a life of its own and tends to persist for a long while. We expect the employment data to be dreadful for many months to come and consequently for consumer spending to continue to decline."

The job losses were far-reaching: manufacturing lost 90,000 jobs, construction shed 49,000, professional and business services saw a decline of 51,000, and retail trade employment lost 38,000. Health care, however, added 26,000 jobs.

As we now know, things got much worse than this. Unemployment rose to 700,000 in Bush's final month.... This was the legacy of George Bush....

[Joekwondo]

I guess that is why the argument is raging over who was worse - Carter or Obama...

[marv]

Isn't it funny how the unemployment rate increased as soon as the Democrats took over Congress in '06? After all, it's the House (of ill repute) that controls economic matters. Then the mongrel president comes along and "improves" it to over 9 percent! It's in the history books now Robby, get used to it!

BTW, figures out today are that the annualized GDP continues to slide down. Now the mongrel president is going to Government Motors and Chrysler in Detroit to talk......jobs! But not Ford, which didn't take government money, and seems to be doing quite well.

So maybe he just wants to get in a few rounds at Chandler Park!

EDIT: Thought I'd add:
http://www.google.com/hostednews/ap/articl...ofCQfAD9H8FSJ80

(snip)

The latest quarterly AP Economy Survey shows economists have turned gloomier in the past three months. They foresee weaker growth and higher unemployment than they did before.

(snip)

The AP survey compiles forecasts of leading private, corporate and academic economists on a range of indicators, including employment, consumer spending and inflation. Among their forecasts:

_ Economic growth the rest of this year and early next year will weaken, to less than 3 percent. From January through May, the economy grew at roughly a 3.5 percent pace.

_ The unemployment rate will be no lower at the end of the year than it is now — 9.5 percent. A majority think it will be 2015 or later before the rate falls to a historically normal 5 percent.

_ State budget shortfalls pose a "significant" or "severe" risk to the national economy. The loss of tax revenue has forced state and local governments to cut services and lay off workers.

(snip)

Americans' confidence in the economy has declined, leading shoppers to reduce spending. And the housing market has weakened further with the end of a homebuyer tax credit that had buoyed sales earlier this year.

(snip)

That's why growth of less than 3 percent is forecast into 2011. And weak growth helps explain why unemployment is likely to stay high. It takes about 3 percent growth just to create enough jobs to keep pace with the population increase.

Growth would have to equal 5 percent for a full year to drive the unemployment rate down by 1 percentage point. Neither the economists in the AP survey nor the Obama administration expects that to happen.

(snip)

This post has been edited by marv: Jul 30 2010, 09:19 AM

[Tipsycatlover]

What's eye poppingly frightening is that under Bush a 4.7 unemployment rate (normal is considered 5.6) was intolerable, but under the mongrel, 10% is the new normal.

When liberals look at these figures they say "Under Bush it was 4.7 so unemployment was worse under Bush".

The economy always takes a dump under democratic leadership. If it weren't for having a republican congress Clinton would have done the same thing.

[marv]

Since the Great Depression, except in times of emergency like WW2, the accepted norm of national unemployment has been about 5.5%. That rate allows for those between jobs, waiting for jobs and those out of work through no fault or choice of their own.

Lower rates portend inflation - too much money seeking too few goods and services further lowering the unemployment rate. Higher rates indicate deflation - too little money so goods and services go unsold fueling more unemployment. Of course, there are many other factors to consider, but those are the basics.

When things swing too far in either direction the government can, and should, step in and adjust things - mostly by adjusting borrowing rates. But if potential employers are uncertain as to the future, even they won't borrow, nor will potential home buyers or auto buyers or anyone who needs to borrow to purchase durable goods like washing machines!

I've tried to make this as simple and as uncomplicated as possible so that even a cave....er....music teacher could understand it.

This is your Econ 101 refresher course Robby, and it comes from a school dropout who observed it first hand, in the real world, at the Kansas City Federal Reserve "J" branch!

[RoBair]

Isn't it funny how the unemployment rate increased as soon as the Democrats took over Congress in '06? After all, it's the House (of ill repute) that controls economic matters. Then the mongrel president comes along and "improves" it to over 9 percent! It's in the history books now Robby, get used to it!

BTW, figures out today are that the annualized GDP continues to slide down. Now the mongrel president is going to Government Motors and Chrysler in Detroit to talk......jobs! But not Ford, which didn't take government money, and seems to be doing quite well.

So maybe he just wants to get in a few rounds at Chandler Park!

EDIT: Thought I'd add:
http://www.google.com/hostednews/ap/articl...ofCQfAD9H8FSJ80

(snip)

The latest quarterly AP Economy Survey shows economists have turned gloomier in the past three months. They foresee weaker growth and higher unemployment than they did before.

(snip)



The AP survey compiles forecasts of leading private, corporate and academic economists on a range of indicators, including employment, consumer spending and inflation. Among their forecasts:

_ Economic growth the rest of this year and early next year will weaken, to less than 3 percent. From January through May, the economy grew at roughly a 3.5 percent pace.

_ The unemployment rate will be no lower at the end of the year than it is now — 9.5 percent. A majority think it will be 2015 or later before the rate falls to a historically normal 5 percent.

_ State budget shortfalls pose a "significant" or "severe" risk to the national economy. The loss of tax revenue has forced state and local governments to cut services and lay off workers.

(snip)

Americans' confidence in the economy has declined, leading shoppers to reduce spending. And the housing market has weakened further with the end of a homebuyer tax credit that had buoyed sales earlier this year.

(snip)

That's why growth of less than 3 percent is forecast into 2011. And weak growth helps explain why unemployment is likely to stay high. It takes about 3 percent growth just to create enough jobs to keep pace with the population increase.

Growth would have to equal 5 percent for a full year to drive the unemployment rate down by 1 percentage point. Neither the economists in the AP survey nor the Obama administration expects that to happen.

(snip)

Trouble is marv, you overeact to the latest news when it's bad....never when it's good. Every time a disappointing number comes in, the media snatches upon it and predicts a gloomy outlook....and you go along for the ride.

[Joekwondo]

Trouble is marv, you overeact to the latest news when it's bad....never when it's good. Every time a disappointing number comes in, the media snatches upon it and predicts a gloomy outlook....and you go along for the ride.

Care to go back and read your GWB posts on the same subject - in fact you did everything you complain about now that the right is doing. As always sux to be you.

[marv]

Trouble is marv, you overeact to the latest news when it's bad....never when it's good. Every time a disappointing number comes in, the media snatches upon it and predicts a gloomy outlook....and you go along for the ride.

Care to go back and read your GWB posts on the same subject - in fact you did everything you complain about now that the right is doing. As always sux to be you.

Robby's only a retired music teacher who never had to get his hands dirty........