If yuo made a six figure salery...

Status
Not open for further replies.
yeah....what he said

the healthy real estate market is the only thing that has kept our economy afloat.......

someone buys a new house.....they want new furniture, appliances, etc.

that and the 0% interest rates on car loans.......it costs the lenders in the long run, but at least they are still selling cars.....
 

justme

homo economicus
Re: yeah....what he said

Originally posted by jseah
it costs the lenders in the long run, but at least they are still selling cars.....
This is a very, very, very important fact.

Inadequate reserving for loan loss due to inadequate interest income and indeed the diminished income itself is going to cause some real heartburn for debt owners.

(Cough Fanny cough)
 
Re: Re: yeah....what he said

Originally posted by justme
This is a very, very, very important fact.

Inadequate reserving for loan loss due to inadequate interest income and indeed the diminished income itself is going to cause some real heartburn for debt owners.

(Cough Fanny cough)
hmmm.....never really thought of it in this way.....

my thinking didn't even involve the risk of the loan going bad, rather the loss of interest income from their use of loaning the buyer money to offset the interest expense to depositors/investors who provide the lender with the funds to lend.
 

Wwanderer

Kids, don't try this at home
Fwiiw (I am definitely not an economic maven), I agree with jm and js that there are good reasons to be concerned about the US economy in the years ahead, but that is not the same as having already had a major economic collapse, of course.

-Ww
 

justme

homo economicus
Of course.

(But I'd be lying if some of the things that trouble me about the long term prospects of the American economy weren't exactly what prompted me to post the 'severe ecomonic collapse' ammendment to my revolutionary rhetoric above.)
 

Wwanderer

Kids, don't try this at home
But people do get the two confused. A friend of mine was bitching and moaning to me the other day about how terrible the economy is. When I pointed out that he had just bought the most expensive car he had ever owned in his life, it sort of stopped him in his tracks. As we sort of talked through why he thinks the economy is so bad, it became clear that he was not acually hurting financially at this point; he is just very worried about a bunch of stuff, including the security of his job. (Not worried enough to refrain from buying the car though, apparently!)

Of course, the bad news is that general expectations are very easily become realities in economics...the ultimate self-fulfilling prophecies.

-Ww
 
if you look at the historical context.....

it was the last 'severe economic collapse' in '29 that caused a radical shift in the federal government, which brought about the introduction of the federal deficit, personal income tax, social security, the various 'social' programs that was geared to get people working and earning money (built Hoover Dam, the TVA, Golden Gate Bridge, etc.)

and economic recovery really didn't come around until WWII started, with hundreds of thousands of men becoming soldiers paid by the U.S. government, and women and the remaining men being employed by factories churning out ships, tanks, bullets, bombs, etc.
 
Originally posted by Wwanderer
But people do get the two confused. A friend of mine was bitching and moaning to me the other day about how terrible the economy is. When I pointed out that he had just bought the most expensive car he had ever owned in his life, it sort of stopped him in his tracks. As we sort of talked through why he thinks the economy is so bad, it became clear that he was not acually hurting financially at this point; he is just very worried about a bunch of stuff, including the security of his job. (Not worried enough to refrain from buying the car though, apparently!)

Of course, the bad news is that general expectations are very easily become realities in economics...the ultimate self-fulfilling prophecies.

-Ww
apparently the issue of job security is starting to lessen, since people are starting to spend money again......Tiffany posted sales revenues higher than expectations......
 

justme

homo economicus
Originally posted by jseah
if you look at the historical context.....

it was the last 'severe economic collapse' in '29 that caused a radical shift in the federal government, which brought about the introduction of the federal deficit, personal income tax, social security, the various 'social' programs that was geared to get people working and earning money (built Hoover Dam, the TVA, Golden Gate Bridge, etc.)
It also led to corporate governance reform, stricter reporting standards, as well as laws greatly limiting the behavior of financial institutions.

Good stuff in my book.

(The economy is bad right now, though (although it does seem to be recovering). Across the board I see companies with revenue drops of 20% - 40%. Unemployment is reaching very high levels (and that statistic is dramatically undervalued by the government). I've never known so many unemployed people. Real salary growth is off.)
 
Originally posted by justme
(The economy is bad right now, though (although it does seem to be recovering). Across the board I see companies with revenue drops of 20% - 40%. Unemployment is reaching very high levels (and that statistic is dramatically undervalued by the government). I've never known so many unemployed people. Real salary growth is off.)
It is undervalued because they don't count unemployed people that are no longer on the rolls into the unemployment numbers....so while the unemployment percentages is low, it doesn't account for the thousands of jobs that no longer exist, or has been moved overseas.
 
the engineer would design the taco to be tasty, good for you, crunchy, yet hold up so it wouldn't break apart on the first bite......

the beancounters in accounting would strip down the taco, use cheaper ingredients, and lessen the quality in the pursuit of lower costs and higher profits.....

sales and marketing would tell you that it is a hamburger....
 

pjorourke

Thinks he's Caesar's Wife
Re: Re: yeah....what he said

Originally posted by justme
This is a very, very, very important fact.

Inadequate reserving for loan loss due to inadequate interest income and indeed the diminished income itself is going to cause some real heartburn for debt owners.

(Cough Fanny cough)
There are lies, damned lies, and then there is accounting.
 

pjorourke

Thinks he's Caesar's Wife
Originally posted by jseah
if you look at the historical context.....

it was the last 'severe economic collapse' in '29 that caused a radical shift in the federal government, which brought about the introduction of the federal deficit, personal income tax, social security, the various 'social' programs that was geared to get people working and earning money (built Hoover Dam, the TVA, Golden Gate Bridge, etc.)

and economic recovery really didn't come around until WWII started, with hundreds of thousands of men becoming soldiers paid by the U.S. government, and women and the remaining men being employed by factories churning out ships, tanks, bullets, bombs, etc.
Nothin like a good war to get the economy roaring again.
 

justme

homo economicus
Well, to be perfectly accurate, we need a large scale war that we're not involved in. So that when the production capacities of the belligerant nations are reduced, we can step in and sell them goods.
 

justme

homo economicus
Re: Re: Re: yeah....what he said

Originally posted by pjorourke
There are lies, damned lies, and then there is accounting.
You can cook the books all you want, but in the end you better have some positive cash generation.
 
Status
Not open for further replies.
Top