85% of U.S. Unhappy With Economy

[PLATO]

Originally posted by Kidicious


I think that might be because some sectors of the economy are going and others are contracting.

I think this is pretty accurate. Net GDP was still up 1.9% in the quarter (Less than was expected, but still expanding).

The concern is that inflation may be taking hold with wages rising while jobs are disappearing. This puts increased pressure on things like the bond market, which basically doesn't know what to do.

One of the toughest messes for an economy to get out of is stagflation...and it looks like we might be there. The response of the Fed the last time was to squeeze the hell out of credit by raising rates to ridiculous levels to stamp out inflation at the expense of economic growth. That does not appear to be politically tenable right now, but after the election.............

[chequita guevara]

Originally posted by rmsharpe
Try Chicago; they always seem to wind up with more ballots than people...

I'm from Chicago. The corruption in Florida is on a scale I've never seen. It's like India or Nigeria. Chicagoan are third rate amateurs by comparison.

[One_more_turn]

Originally posted by Kidicious


I don't know how you can think that when interest rates are so low and people are searching endlessly to get a good return on their investment. The problem is clearly underconsumption.

We underinvested everything from basic scientic research to education to energy to public infrastructure.

Piling into financial assets is only a small part of overall investment.

[rmsharpe]

Originally posted by chegitz guevara


I'm from Chicago. The corruption in Florida is on a scale I've never seen. It's like India or Nigeria. Chicagoan are third rate amateurs by comparison.

Well, the Daley dynasty has been there since the dawn of time and they managed to steal 1960 well enough.

[ramseya]

The markets don't seem to be too expectant of inflation though. the spread between 5-year TIPs and Treasuries is only ~2.16%. What are they saying the inflation rate is now? 5%?

[One_more_turn]

Originally posted by ramseya
The markets don't seem to be too expectant of inflation though. the spread between 5-year TIPs and Treasuries is only ~2.16%. What are they saying the inflation rate is now? 5%?

That's because Chinese, Japanese, Kuwaitis, and Saudis are still supporting the American homeowners by buying up US treasuries.

That's one way to park their humongous trade surpluses with us.

[chequita guevara]

Originally posted by rmsharpe

Well, the Daley dynasty has been there since the dawn of time and they managed to steal 1960 well enough.

That's a myth.

[Kidlicious]

Originally posted by One_more_turn


We underinvested everything from basic scientic research to education to energy to public infrastructure.

Piling into financial assets is only a small part of overall investment.

"Our country is suffering from overconsumption and underinvestment, is it so difficult to recognize?

If the next Administration continues to the same borrow-and-consume nonsense, I see no other viable investment options beside hoarding foreign currencies, gold, and oil, while shorting the bejeezus out the S&P 500."

So you want to borrow and invest, tax and invest, or cut spending and invest? Cutting spending significantly is not going to happen. Taxing is going to cut consumption that's for sure, but that will definitely hurt the economy. Borrowing and investing I agree with, but then that's not going to cut consumption much. In fact, it will boost it.

[One_more_turn]

That's the 10 trillion dollar question.

There are of course many different ways to fund new investments:
- Tax the rich since wealth concentration has gone haywire over the last 25 years;
- Tax consumption, gas tax and national sales tax come to mind;
- Eliminate SS income limit;
- Eliminate Bush's tax cuts;
- Increase taxes on long term capital gains and dividend;
- Borrow more at the federal government level.

People and the economy probably won't be too happy about all these in the short term, and approval rating for the next administration could drop to Bush's level today. However, if the new money is spent wisely, then our country will be poised for a bright new dawn.

[Kidlicious]

Originally posted by One_more_turn
That's the 10 trillion dollar question.

There are of course many different ways to fund new investments:
- Tax the rich since wealth concentration has gone haywire over the last 25 years;
- Tax consumption, gas tax and national sales tax come to mind;
- Eliminate SS income limit;
- Eliminate Bush's tax cuts;
- Increase taxes on long term capital gains and dividend;
- Borrow more at the federal government level.

People and the economy probably won't be too happy about all these in the short term, and approval rating for the next administration could drop to Bush's level today. However, if the new money is spent wisely, then our country will be poised for a bright new dawn.

Of the four places of investment you mention education and public infrastructure are very dependent on population growth.

[Zkribbler]

I would like to see an "income-is-income-is-income" tax. That is, all income should be txed the same.

I get peevish when I see may hard-earned salary taxed at a higher rate than are capital gains, stock dividends and inheritance. Work should not be taxed more than non-work.

[Kuciwalker]

Yeah, that's because you actually have no idea what your talking about.

[DaShi]

Well, I'm annoyed that Shaw's seems to have discontinued all of it's own brand of products, especially the yogurt and ginger cookies.