tag:blogger.com,1999:blog-6762928.post366411008488914890..comments2024-01-03T05:23:36.046-08:00Comments on The Citizens: Six PercentUnknownnoreply@blogger.comBlogger7125tag:blogger.com,1999:blog-6762928.post-18721507046224742052007-08-05T17:06:00.000-07:002007-08-05T17:06:00.000-07:00Look for a real estate crash in China after the Ol...Look for a real estate crash in China after the Olympics.Raised By Republicanshttps://www.blogger.com/profile/03461006522141969925noreply@blogger.comtag:blogger.com,1999:blog-6762928.post-66138810167485420162007-08-04T04:29:00.000-07:002007-08-04T04:29:00.000-07:00The general economic fundamentals are good across ...The general economic fundamentals are good across the world, but it is well recognised that there is an excess of "liquidity" in the system. Asian countries have been buying US treasury bonds so there won't be another Asian collapse, oil producing countries have to buy something from their tangible profits, and Japan still has a very low interest rate. From what I've read, small change will occur due to the current credit issues, but the liquidity in the system probably will not alter until Japan starts raising it's rates. That could alter the profits of service and financial industries that will flow on to a bear economy. But what do I know?<BR/><BR/>The other concerns to the whole economic situation is the current housing bubble across the western world -- not Asia -- that will bite. Hopefully governments will manage to contain things enough so that houses are simply not good investments for the next ten years.<BR/><BR/>I also think, as mentioned previously on this blog, that another issue is when -- not if -- the US dollar either loses or has to share reserve currency status with the Euro. That'll probably require the French getting their act into gear first...<BR/><BR/>Spotted HandfishAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-6762928.post-55179745535518061582007-08-02T09:58:00.000-07:002007-08-02T09:58:00.000-07:00I find it interesting that while all the economic ...I find it interesting that while all the economic indicators are good, GDP growth, Productivity, employment, inflation, etc., the stock market is looking bearish. Is this a sign that the finance sector is becoming oddly divorced from the overall economy? Is this what happens when there are huge wealth gaps in an economy based on credit?<BR/> <BR/>I agree with RBR, and he does make an interesting point. What will this mean for those of us coming up the rear with IRAs and 401Ks?<BR/><BR/>I would also point out that in the past, wealth was based on the actual production of something tangible. Now it is largely based on services and investment. It is sort of abstract in nature.<BR/><BR/>I also think that a market readjustment is a good thing. When working people can’t save enough for a down payment on a home, there is a problem. I don’t care how low the interest rates are. Since the loan market is going to pretty much tighten, more people will be shut out of the market simply because they won’t qualify for traditional loans or have the down payment needed to secure a fair mortgage. One is damned either way.USWesthttps://www.blogger.com/profile/07572294996079264655noreply@blogger.comtag:blogger.com,1999:blog-6762928.post-9851120177055479332007-08-01T13:17:00.000-07:002007-08-01T13:17:00.000-07:00Politically, the major economic issues are inflati...Politically, the major economic issues are inflation and unemployment. Both are under control right now. I don't see either as a risk to the Republicans or an opportunity for the Democrats. <BR/><BR/>As a point of contrast, Bush 41 and the Republicans were severely damaged leading up to the 1992 election when the unemployment rate had gone up from 5.2% in June 1991 to 7.8% in June 1992. The economic uncertainty and angst seemed to play right into Clinton's message.<BR/><BR/>Right now, the unemployment rate is 4.5%. A year ago it was 4.6%. We are operating at full employment. With so many people drawing a paycheck, I think it will be hard for the Democrats to dent the Republicans on economic issues.The O'Brien's Teamhttps://www.blogger.com/profile/00851127128535644788noreply@blogger.comtag:blogger.com,1999:blog-6762928.post-39744325436989013902007-08-01T10:14:00.000-07:002007-08-01T10:14:00.000-07:00The indices are still way above where they were on...The indices are still way above where they were one year ago (Dow at 11000). <BR/>Check out:<BR/><BR/><A> http://finance.yahoo.com/q/bc?s=%5EDJI&t=1y&l=on&z=m&q=l&c=</A><BR/><BR/>The real danger to the economy, I think, continues to be the serious credit crunch rippling from the housing sector. The good news is that interest rates are too low for there to be that much of a crunch, I think.The Law Talking Guyhttps://www.blogger.com/profile/17886791396468512490noreply@blogger.comtag:blogger.com,1999:blog-6762928.post-54997428319042502202007-08-01T09:57:00.000-07:002007-08-01T09:57:00.000-07:00You're probably right, but for some reason this st...You're probably right, but for some reason this still nags at me. Interesting point about the Boomers... I've never heard "liquify" sound quite so ominous before :-)Dr. Strangelovehttps://www.blogger.com/profile/14407042105777411150noreply@blogger.comtag:blogger.com,1999:blog-6762928.post-55150996640168162302007-08-01T06:05:00.000-07:002007-08-01T06:05:00.000-07:00Dear Chicken Little,Don't worry. In all likelihoo...Dear Chicken Little,<BR/><BR/>Don't worry. In all likelihood, it was just a bit of profit taking. <BR/><BR/>The really nasty slump will start when the Baby Boomers really start to retire (and liquify their stock portfolios) en masse. Recent stock market sluggishness may have postponed that time somewhat.Raised By Republicanshttps://www.blogger.com/profile/03461006522141969925noreply@blogger.com