Double-Dip Recession Inevitable, Experts Say

Discussion in 'Money Talk$' started by mandym, Jun 29, 2011.

  1. mandym

    mandym
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    "Despite what U.S. Federal Reserve Chairman Ben S. Bernanke said in his speech at the International Monetary Conference yesterday (Tuesday), it looks very much like we're headed for a double-dip recession.

    Indeed, the economic reports of the last week or so demonstrate that the U.S. job machine was never really jump-started after the Great Recession of 2008-09. "

    http://www.nuwireinvestor.com/articles/double-dip-recession-inevitable-experts-say-57379.aspx

    __________________________________________________________

    I have a source from congress that says the President is trying to figure out a way to tell this to America
     
  2. billwald

    billwald
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    Then triple. Everything is going according to plan. Nothing will improve until after WW3 or Jesus returns.
     
  3. InTheLight

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    The article contradicts itself:

    Washington's fiscal stimulus has generated massive budget deficits and given banks no incentive to play its key job-creation role by lending to small businesses. Instead, the stimulus has provided temporary jobs with the government - and those jobs are now disappearing as Washington's money runs out.

    vs.

    Monetary stimulus has been more damaging. [..] It is likely to have contributed to the growing job-market malaise - and with good reason: Economic theory suggests that when capital is very cheap, businesses will use more capital at the expense of labor, reducing the demand for workers.


    So which is it? Bankers are tight with lending money to small businesses which is hindering employment?

    OR

    Money is cheap and easy for small businesses to acquire so the demand for workers is lower?

    BTW, borrowing money to hire people is down the list of reasons why businesses go to the banks. Businesses borrow money to buy capital equipment and inventory because demand for their products is increasing. Hiring will soon follow.

    Businesses don't borrow money so they can hire people and start paying FICA, medicare and withholding taxes along with benefits. They borrow to expand their ability to produce goods and services--hiring follows.
     
  4. TomVols

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    While human resources and internal customers are some of the most expensive costs a business will incur, it's hard to get financing for such an asset. Banks won't loan money on people :tongue3: You're right in that physical resources that help in producing goods and services are what businesses seek capital through leasing or purchase loans/grants. This money is circulating a bit.
     
  5. Earth Wind and Fire

    Earth Wind and Fire
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    When did we come outa the 1st one?:smilewinkgrin:
     
  6. preacher4truth

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    Exactly what I was going to say. There is no "double-dip." To say such is to say we came out of the first one.
     
  7. mandym

    mandym
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    And you have evidence we have not?
     
  8. preacher4truth

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    Well, yes, I do. It's called my business bank account.
     
  9. billwald

    billwald
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    There are two parallel economies. One for the miners who owe their souls to the company store and one for the people who own the company store. The stock market measures the economy for the store owners. The consumer price index and the unemployment rate measure the economy for the miners.
     
  10. TomVols

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    There is a major flaw to this, Billwald. Everyone now has some stake in the markets. If you have a 401k, 403b, IRA, etc., you now have a stake in this. If you have a hope of getting OASDI, you have a stake in this. If you have a mortgage or ever hope to have one, you have a stake in this. If you have a SPWL, etc., you have a stake in this. If you have a pension plan (good luck with that) you have a stake in this. If you work, have a bank account, etc., you have a stake in this. All these folks are in the market, like it or not.

    CPI is not a good measurement. It's contents and metrics are static while the economy is not. The CPI needs an overhaul. But that's another story.
     
  11. billwald

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    Agree. The CPI is defective for not including the cost of energy.

    My pension (Washington State LEOFF1) is solvent and fat. The state is trying to steal it but so far we have case law on our side.
     
  12. Earth Wind and Fire

    Earth Wind and Fire
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    Or you could start shooting Bankers! :thumbs:
     
  13. TomVols

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    Bankers have become the new "boogey man." All the banks did was give people what they wanted. The real villain in this is the American consumer who has earned the moniker, and the governement who enabled at worst and facilitated it at best with its regulatory ineptitude.
     
  14. billwald

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    But bankers didn't give people what they wanted until deregulation.

    How are bankers different than prostitutes and dope sellers?

    No all bankers. I knew a guy who ran a savings and loan during THAT mess. He said he always slept well because all his money was in government paper. He had his desk in the middle of the bank floor and sat there with his shoes on the desk, smoking a stoggie and reading the racing form. Bob Chinn was a banker you could trust.
     
  15. billwald

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  16. TomVols

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    That first part is somewhat of a bromide. Deregulation is a mythological term used to try to demagogue bankers. Banking regulations are vast and cover almost everything imaginable, and some things you can't imagine. I agree that negative ams, CORA, etc., were poor regulations that led to this, so regulations are part of the issue. But deregulation? That's just ridiculous.

    Bankers different than prostitutes and dope sellers? Really, Billwald? Come on.
     

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