Why is the US economy so bad?

fedup2 · #31 (**permalink**) 03-26-2008, 12:28 AM

Quote:

Originally Posted by Istok

I was listening to a liberal radio talk show this morning and some economist claims we are bad off and lists the reasons: home values, foreclosure, jobs lost, dollar value, mortgage meltdown, dollar value, bla bla bla. All the same stuff everyone is complaining about. Now if you bought an overpriced home 1 year ago with nothing down what exactly did you lose? Logically speaking the prices will come down now that there is a greater supply of homes on the market. You lost your home now you will have to save and have a good down payment to buy the next home. What is the problem here, the market is at work. Oh yeah and now you cannot borrow against that house to spend on plasmas, German Ultimate Driving Machines and crap. Too bad.
The lady economist practically admitted that the drop in dollar value is a benefit to the US economy because now we export more. Oh and trips to Europe will be more expensive.
So without sounding rhetorical in my title, tell me what is so wrong with the economy other than we cannot borrow against our homes to buy imported gadgets?

The economy is the way it is because people react to the "sky is falling" theory. With the internet......it speads up that process. The economy rises and falls and a lot of time the general public doesn't even realize it until it has already fixed itself.
Thanks to the politcal news, more people are listening to the news and radio so of course..... here we are.
Thank you Scaredy Cats.....for reacting to the "sky is falling" scare!!!!!

SouthernPlanter · #32 (**permalink**) 03-26-2008, 02:49 AM

Quote:

Originally Posted by billybones

Personally, I think we should tax gas due to the shear fact that its destroying the planet and the gov't needs money now, but I'm doubting many on this forum will agree with me. I was just using gas to point out the inflation that's happening right now.

But isn't high gas prices destroying our economy?

This isn't "The Day After Tomorrow".

It's the Economy stupid!

Not the fucking environment...

SouthernPlanter · #33 (**permalink**) 03-26-2008, 02:51 AM

Quote:

Originally Posted by Suburbanite

because, when our stock market drops, it becomes even cheaper for foreign investors to use THEIR currency to buy OUR companies. And now, the profit, the money American companies really make, it being exported.

No this isn't how it works.

Almost all foreign investment is direct, meaning they build things in the US to export elsewhere, etc. etc. The idea that the US would become owned by foreigners is retarded...I saw the estimate actually and at the PRESENT rate of foreign purchasing of US assets, foreigners will LOSE percentage of ownership in the total asset base of the US.

Foreigners have a long way to go before anyone should be concerned about them "owning" the United States.

A. Crowley · #34 (**permalink**) 03-26-2008, 02:51 AM

SoMan,

You make absolutely no sense, ever.

STFU, shitforbrains.

SouthernPlanter · #35 (**permalink**) 03-26-2008, 02:54 AM

One of these A. Crowley, you're going to die.

And we'll all be happier for it.

A. Crowley · #36 (**permalink**) 03-26-2008, 03:16 AM

Who's "we"?

You and Carson (who doubles as Razzpukin)?

SouthernPlanter · #37 (**permalink**) 03-26-2008, 03:31 AM

I'm pretty sure just about everyone on this forum will sing praises to your miserable pathetic and worthless death.

A. Crowley · #38 (**permalink**) 03-26-2008, 03:32 AM

"Haleluya!"

Suburbanite · #39 (**permalink**) 03-26-2008, 03:34 AM

Quote:

Originally Posted by SouthernPlanter

No this isn't how it works.

Almost all foreign investment is direct, meaning they build things in the US to export elsewhere, etc. etc. The idea that the US would become owned by foreigners is retarded...I saw the estimate actually and at the PRESENT rate of foreign purchasing of US assets, foreigners will LOSE percentage of ownership in the total asset base of the US.

Foreigners have a long way to go before anyone should be concerned about them "owning" the United States.

are you nuts? Look at who sits on the boards of some of the biggest banks. Citibank, for example, the single largest shareholder is Prince Al-Waleed bin Talal of Saudi Arabia.

Please, get real, I am not making anything up, I'm explaining to you what everyone who knows anything about business already knows. Its on the front of the NY Times for shit's sake, like yesterday.

Istok · #40 (**permalink**) 03-26-2008, 12:09 PM

Quote:

Originally Posted by Suburbanite

Emi, again, wrong. First of all, how is it stupid to get a loan for a house from a bank? These are people who ARE NOT TRAINED in understanding the sincere complexities of our economy...sort of like yourself. The bank is full of people who ARE trained, they understood very clearly how this would effect people. People, on the other hand, had no fucking clue when they got their loan.
I'm sorry, but your perspective on the government is annoying, beyond stupid. If you don't think your tax dollars are worth the government helping you instead of hurting you, then fuck it, sign up for the army bitch and get lost.

i still cant get over "the loan companies", hahahahha, seriously, you're killing me. Such as.... such as.... HAHAHAHAHAHA!
I'm surprised I have heard back from you on this topic, aren't you embarrassed?

No need for name calling. This credit crisis gets everyones blood boiling especially with the bailout but we can remain civil about this.
There is an element of greed involved here. People bought beyond their means and did not ask questions about the financing.
Think about it this way if everyone was selling the Apple Iphone for $500 and someone you do not know offered it to you for $200 you would be suspicious right? You would wonder if it is used, broken, refurbished or stolen. You would ask questions and do a close up of the product and test it. Now this is a $500 item compared to a $500,000 house which is 1000 times the cost. Ok you can't do 1000 times the research but shouldn't you do at least 10 times the research? You could talk to a few more brokers or loan agents, read a book, talk to some friends even the government has great education for first time buyers. All people saw was square footage, granite counters, wood floors, Jacuzzi tubs and location location location. Greed drove them to get a loan at all costs even if it was for a variable rate loan that they could barely afford at that time not to mention now. People were blinded by the need to show off a nice new homes to friends, family, coworkers, fellow church members, you name it.
Come one Suburbanite, don't tell me you do not know someone who invited you to their nice new house and you know they were living above their means. They were all smiles and just so eager to show off their affluence. You know roughly how much they make and it was too little and they had one of those zero down, variable rate loans that allowed them to buy more due to the low rate. What did you do? You bought where it was feasible and within your means and now you are doing fine.
I do not feel pity for an adult that spends more time researching what type of television to buy than what home to buy and how to buy it.
Secondly it is not the end of the world. You move to an apartment, save your money and in five years you could afford something granted with a higher rate due to your bad credit. After making payments for a year or so you can refinance and lower your rate. So you will just have to save your money, like the rest of us, for a few years to afford a house.