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The Economy --Maybe The US Did It Right?

Tuesday, September 10, 2013 - 8:40 AM
2
AllyAlly786 posts since
Jan 16, 2010
Rep Points: 2,283
1. Tuesday, September 10, 2013 - 9:35 AM
Just read that the US has gone up 2 from 7th to 5th and the Brits have gone down 2 from 8th to 10th in the 24/7 Wall Street article on the best economies in the world. 


The Best Economies in the World - 24/7 Wall St. 
1
AllyAlly786 posts since
Jan 16, 2010
Rep Points: 2,283
2. Tuesday, September 10, 2013 - 3:12 PM
"The economy - maybe the US did it right?"

Sure, if you count anemic GDP growth; a huge drop in real median income and wages; a plethora of minimum wage jobs; high youth unemployment; the lowest participation employment rate since WW 2; a substantial increase in the poverty rate; record growth of food stamps, medicaid and SS disability and other welfare programs, and finally the  worst economic recovery from a recession since the Great Depression, I can only imagine what would have happened if the US did it wrong.
4
loulou521 posts since
Aug 3, 2010
Rep Points: 3,239
3. Tuesday, September 10, 2013 - 4:53 PM
Right on the mark lou! I nominate you for the new Chairman of the Federal Reserve. You may take that chairmanship position immediately.
3
ShorebreakShorebreak2,381 posts since
Apr 6, 2010
Rep Points: 12,707
4. Tuesday, September 10, 2013 - 7:22 PM
Thanks, Shorebreak. I can tell you if I was chairman, the bond and stock markets would not be happy campers.
3
loulou521 posts since
Aug 3, 2010
Rep Points: 3,239
5. Tuesday, September 10, 2013 - 7:32 PM
All posts are true.  But facts are the other countries are worse of than we are for growth, except their countries have more help for those in need.  But here they took benefits away. But what is worse is that article from Time magazine.  It is the 20's and 30's all over again. 
2
AllyAlly786 posts since
Jan 16, 2010
Rep Points: 2,283
6. Wednesday, September 11, 2013 - 6:55 AM
Thanks, Shorebreak. I can tell you if I was chairman, the bond and stock markets would not be happy campers.


And Lou, you are too frank to fit in that job.  One has to learn to talk mysteriously and in a non-definite way (i.e., double talk):D
3
51hh51hh1,462 posts since
Jan 16, 2010
Rep Points: 6,352
7. Wednesday, September 11, 2013 - 6:02 PM
Yeah, at my first press conference, the first thing I would announce is a 250 basis point increase in the federal funds rate. I would expect there would be quite a few people jumping out of their skyscraper offices on Wall Street.
2
loulou521 posts since
Aug 3, 2010
Rep Points: 3,239
8. Wednesday, September 11, 2013 - 10:22 PM
With 250 basis points, there would be no home sales knocking even more buyers out of the market. Less loans of all kinds would be made. Small business could not expand. It could stop the sluggish job growth we have now. It is bad now but we are not loosing nearly 800,000 jobs a month. I agree that 169,000 a month in new jobs is not enought either. But that is nearly  1 million jobs a month turn around in 4 1/2 years. If you raised the rates that much would not be following the mandate by Congress, low inflation and low unemployment? Don't need to stop growth and have 10% unemployment again. People need to spend to spur jobs. People buying is nearly 70% of our growth. Saving doesn't spur growth. Save when rates are high so you can spend when rates are low. 
2
AllyAlly786 posts since
Jan 16, 2010
Rep Points: 2,283
9. Wednesday, September 11, 2013 - 11:43 PM
250 basis point increase would give us a federal funds rate of 2.5% , slightly higher than inflation. Today, we have negative real rates punishing savers and seniors and taking hundreds of billions of dollars out of the economy. If you want to talk about consumer spending and economic growth, this siphoning of money from savers to banks, speculators and debtors has probably done more to slow the recovery than anything else.

I wouldn't be bragging about the number of jobs created in the last 4 years, when you have an equal or greater number of jobs obliterated during the same period. Today, far less people are working than 4 years ago, and most of the new jobs created are part time, minimum wage jobs in fast food restaurants and the like. In Ronald Reagan's first term, over 6 million jobs were created, six times more jobs coming out of one of the worst recessions in modern history.  In case you don't remember, we had a peak 14% inflation and 10.8% unemployment in the 1980-82 time frame.

You can gild the lily all you want, but I refuse to accept that this is the best we can do.
3
loulou521 posts since
Aug 3, 2010
Rep Points: 3,239
10. Thursday, September 12, 2013 - 11:30 AM
I hope it isn't the best that can be done. It took 25 years after the first crash of 1929 to get back to even for families.  Look at Japan. They have or did have 100 year mtgs in some areas of Japan. For the 4 years that we are into this recovery it may be the best we can expect with what has been done with this divided congress. Here is the chart of what has been done and what has to be done. I have stated in previous posts that I would like to see more schools, homes insulated, better roadways and exits, sewer and water pipes updates in our cities, electrical grids updated, better traffic control from 7 to 9 am and from 4 to 6 pm. We have  had  807 accidents on a 15 miles stretch of a local 4 way divided highway in 5 years. Think there are a lot of projects that can be done to employ more people while making for a better world. This is what is different in this recession. We have had tax cuts and tried a lot of new ideas where some worked and some did not. This is what happens in a divided congress. 

 Five years after the crisis, these 13 charts show what’s fixed and what isn’t. 
2
AllyAlly786 posts since
Jan 16, 2010
Rep Points: 2,283
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