The Key Variables -Unemployment & FED »
Posted by: universal12 1 year, 1 month agoThe consumer drives 2/3 of the economy. If people stop spending for fear of losing their jobs or trying to keep the purse strings tight during a "job transition", there is less consumer fuel to keep the US engine moving.Hence, the FED steps in with cheap money (fuel) and primes the pump all over again (Keynesian Economics).
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jordan111 year, 1 month ago
It worked for a while, but the leaks are starting. Housing repossessions higher than since the depression. Next will come the credit card debt, which has made our economy look good....& savings at ZERO. Unbelievable. The next President is walking into a disaster.
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mossback1 year, 1 month ago
Yes the Euro is strong against the dollar but the US exports to Europe are at an all-time high since 1955. A low dollar is bad for the American Tourist in Europe but good for the American worker in Toledo. We are doing to Europe what Japan did to us in the 1970s. We are keeping our currency low and selling under their domestic production.
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crghss1 year, 1 month ago
Don't panic. Like everything in finance there are ups and downs, ebb and flow. This has happened before and will happen again.
But the Euro has a long way to go before it replace the British pound let alone the American dollar.
Doesn't it get tiring looking at everything with doom and gloom?
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wildman65571 year, 1 month ago
The situation today is very simular to 1968. It looked great. The stock market was doing good and unemployment was low. Seven years later, Ford had 12% inflation and unemployment was skyrocketing.
The problem is that we can't borrow and spend like we have for very long without things going south. For a while the economy goes great but soon your borrowing catches up with you. It happens to an individual, it happens to a country.
Back then, the Democrats wanted the Great Society and the war. Now the Republicans want tax cuts and the war. Same results different party.
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wildman65571 year, 1 month ago
Actually there isn't that much oil up there. Even if ANWR turns up in the 90% of hoped for range, it wouldn't touch the National debt. The only hope is to cut spending.
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wildman65571 year, 1 month ago
The trouble is that people look at the immediate economy without looking at the trends. And the trends are ominous. The dollar is falling like a rock and inflation is creeping upward. The Democrats would be better off losing in the next election. It will probably be like LBJ and Nixon and Ford. LBJ (a Democrat) wrecked the economy and Nixon and Ford (Republicans) had to live with the results.
It proves that there isn't a whole lot of difference between the two parties. They both have idiot leaders (LBJ/Bush).
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OldRusty1 year, 1 month ago
Theo cost of living, has gone through the roof, high gas prices,increased utilities,food,. and mandatory car insurance,.No where to cut back,.All hugh profits for the manufactures , no savings for the consumers .An example is mandatory car liability insurance, a law designed to keep poor blacks, and hispanics off the roads.,elected praise the insurance companys at the working peoples expense.
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lestparker1 year, 1 month ago
The cost of living has not gone through the roof. gas prices are up, but utilities, food, etc are actually bargains as witnessed by low inflation. Unemployment is virtually non existent. At 4.5% with 12 million illegals in the labor pool, but not counted in the unemployment statistics, there are more jobs than there are legal workers! Granted that many of these jobs are low paying, but they are jobs.
BTW mandatory car liablility insurance is not designed to keep poor people off the roads.. they are to protect all of us from people who drive (often poorly) without any insurance at all. Why do you think that uninsured motorist insurance is so expensive? Because until liability insurance became mandetory, there were huge numbers of people driving with no insurance at all! I know because I was hit by one!
Otherwise, this article was on target. Probably good advice to avoid small caps, they do tend to be quite volatil and we could be in for a bumpy ride for the next few years.
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crghss1 year, 1 month ago
"a law designed to keep poor blacks, and Hispanics off the roads"
Are you kidding me? Number one you assume all white people are rich when in fact there are more poor white people than any other race. Number 2 how is any one going to pay for damages if they're responsible in an accident especially medical cost and especially the poor.
This maybe the most ridiculous statment I've ever read on nutscape. Now that's saying something.
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OldPerfesser1 year, 1 month ago
spelling, grammar and syntax
This is a pathetic piece of writing. Many high school students would be ashamed to publish a piece with as many errors as this contains. You should learn to proofread, and then do it. If you want to be taken seriously (and what economist doesn't?) you should learn to produce quality text.
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universal121 year, 1 month ago
I did not right this article oldprofessor. But did you know that you spelled professor wrong? maybe it was on purpose I don't know.
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universal121 year, 1 month ago
Im sorry, it's not professor. To know that there are no hard feelings I still voted on your comment.
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evelyna1 year, 1 month ago
If people were smart they would quit buying everything they did not have to.
I don't know about saving. The republicans hit my 401ks pretty good in 2000. At the same time trying to convince people to keep the money there because it was only a correction.
The truth is the country has run out of creative ways to make money. Why else would they be wanting people to take out subprime loans and bogg them down in credit.
Another lie-increase productivity. A lot of us have. The only thing is it is not generating any income only to ceos. The rest of us just have to work harder for nothing.
I could care less if the country tanks, I am working for nothing any way with the high cost of things.
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