How Bad Is It???

[wheresmy50]

The US economy is 2/3 consumer spending, so every gloom and doom news story makes things a tiny fraction worse by causing people to spend less money. Less money spent hurts businesses, who need to lay people off, who spend less, and the cycle continues.

Just like how every media COMPANY this summer was parading faux experts predicting $7 gas by Christmas, they're now all throwing around the word "depression" when we're not yet even officially in a recession. Bad news sells. We were hearing how bad the economy was when the dow was at 14,000 for Christ's sake.

I'm not saying we're not in a slowdown, and I'm not even saying things aren't worse than they were earlier in the year.

My point is this - the worse you think the economy is, the worse it will get. If people start keeping money in their mattresses, we will be in a depression, and then at least CNN will be reporting the truth.

The US economy IS diverse and fundamentally sound. This is an over-correction and will pass.

[JohnR]

Originally Posted by wheresmy50

The US economy is 2/3 consumer spending, so every gloom and doom news story makes things a tiny fraction worse by causing people to spend less money. Less money spent hurts businesses, who need to lay people off, who spend less, and the cycle continues.

Just like how every media COMPANY this summer was parading faux experts predicting $7 gas by Christmas, they're now all throwing around the word "depression" when we're not yet even officially in a recession. Bad news sells. We were hearing how bad the economy was when the dow was at 14,000 for Christ's sake.

I'm not saying we're not in a slowdown, and I'm not even saying things aren't worse than they were earlier in the year.

My point is this - the worse you think the economy is, the worse it will get. If people start keeping money in their mattresses, we will be in a depression, and then at least CNN will be reporting the truth.

The US economy IS diverse and fundamentally sound. This is an over-correction and will pass.

Bingo, duck falls out of the ceiling, politician sponsored, media-assisted, greed fueled, economic self-fulfilling prophecy...

We found out yesterday that miy wife will not be among the layoffs at her work that were announced yesterday (yet)

[spence]

Originally Posted by wheresmy50

The US economy IS diverse and fundamentally sound. This is an over-correction and will pass.

Nothing to see here, move along...

Ok Senator McCain

We've gone from a nation that primarily produces to one that primarily consumes and borrows to keep consuming. This isn't fundamentally sound.

-spence

[striperman36]

http://www.boston.com/business/ticke...loyment_1.html

Ouch.

[BigFish]

I agree RIJimmy! Wheresmy50 things must be nice in the world you live in! Can I get a pair of those rose colored glasses? Recession has to be the stupidest word/term I have ever heard! I think it was made up by politicians so they can put a pair of those rose colored glasses on everyone when there is a brown pile of crap staring them in the face! Recession as it is known has come and passed in my eyes and we are staring depression in the eyes as we speak!! Not a depression as they knew the one in 1929 but a modern day depression! The mortgage companies get a bailout of 700 billion dollars from the government so they do not go tits up, the "Big Three" are seeking same as they are on the verge of collapse and unemployment is an out of control freight train that is gaining steam and headed for 10% nationally so you better get out of the way because if you do not think that train is coming down the tracks as sure as we speak here it is going to crush you! Might want to pick up a paper, watch the news or better still.......just talk to your neighbors on either side of you.....they may have a different story to tell about how bad it is!

[mekcotuit]

I work for a medium size financial mgmt company. From 2002 to 2008 our assets under management went from 250 million to just about 8 billion dollars this past August. From August to yesterday? we are down to 4.4 billion. I know when I say billions you are thinking huge amounts, but the drop from August is truly frightening in such a short time. Just walking through South Station and on the train you can sense the mood and see the anxiety in people's faces. Obama has his work cut out for him but I think we all need to drop the crap about who's fault it is, he's a socialist, etc and pull together. After all, that spirit of community got the country through the 30's (and 25% unemployment - 1 out 4 workers!!!) even though there are still dip%$%$%$%$s to this day who poo poo Roosevelt and his programs as "socialist"..

[fishbones]

Originally Posted by striperman36

http://www.boston.com/business/ticke...loyment_1.html

Ouch.

Last night they showed a chart on the news that put RI at 10.3%. MA & CT were a little better, but overall, New England is taking a pretty big hit.

[HESH2]

thinking about all the places my dad and his generation worked at all mfg jobs gone.drive along 95 in ct and see all the old factory brick buildings closed for years.the gun that won the west winchesters and colt gone for years.wow free trade,all mfg jobs to china,usa a consumer nation in the toilet.thank our politicans and keep on thanking them.

[RIJIMMY]

Originally Posted by wheresmy50

The US economy is 2/3 consumer spending, so every gloom and doom news story makes things a tiny fraction worse by causing people to spend less money. Less money spent hurts businesses, who need to lay people off, who spend less, and the cycle continues.

Just like how every media COMPANY this summer was parading faux experts predicting $7 gas by Christmas, they're now all throwing around the word "depression" when we're not yet even officially in a recession. Bad news sells. We were hearing how bad the economy was when the dow was at 14,000 for Christ's sake.

I'm not saying we're not in a slowdown, and I'm not even saying things aren't worse than they were earlier in the year.

My point is this - the worse you think the economy is, the worse it will get. If people start keeping money in their mattresses, we will be in a depression, and then at least CNN will be reporting the truth.

The US economy IS diverse and fundamentally sound. This is an over-correction and will pass.

That is the most incorrect assesment I have seen on any topic in all my years on S-B. I work for one of the largest financial companies in the world and have seen presentations by the smartest investment people in the world, and they disagree with you.
Lets look at your points. The consumer is the heart of this economy - true. But the consumer is going to foot the bill for the billions in government bailout, the consumer is goign to foot the bill for the local municipalities that are having budget shortfalls, the consumer is impacted by rising unemployment.
So, your advice to the consumer is to keep spending? So who bails out the consumer?

[UserRemoved1]

SPOT ON and exactly what I have been saying for a while now.

Originally Posted by wheresmy50

The US economy is 2/3 consumer spending, so every gloom and doom news story makes things a tiny fraction worse by causing people to spend less money. Less money spent hurts businesses, who need to lay people off, who spend less, and the cycle continues.

Just like how every media COMPANY this summer was parading faux experts predicting $7 gas by Christmas, they're now all throwing around the word "depression" when we're not yet even officially in a recession. Bad news sells. We were hearing how bad the economy was when the dow was at 14,000 for Christ's sake.

I'm not saying we're not in a slowdown, and I'm not even saying things aren't worse than they were earlier in the year.

My point is this - the worse you think the economy is, the worse it will get. If people start keeping money in their mattresses, we will be in a depression, and then at least CNN will be reporting the truth.

The US economy IS diverse and fundamentally sound. This is an over-correction and will pass.

[BigFish]

Scott your insane too? This is not a "the sky is falling" scenario......people are having problems and are being impacted even if the roses are still in bloom at your house...but they do not bloom forever.

[BigFish]

I love when people call this situation a "Slowdown"...it tickles me!