Re: Wall Street records worst day in a month

[Guest guest]

Well let's see: we've got anti-business legislation and regulation being pumped daily out of DC, crony capitalism is on the rise, labor department officials saying they are pro-union, power plants might be forced to close, housing values are still dropping, banks are sitting on enough cash to tank the dollar and the President wants another trillion dollars in taxes on top of those he has already imposed and won't limit spending.

Wow, I wonder why the market isn't booming?

In a message dated 7/11/2011 7:05:11 P.M. Eastern Daylight Time, no_reply writes:

Wall Street records worst day in a month

[Guest guest]

Well let's see: we've got anti-business legislation and regulation being pumped daily out of DC, crony capitalism is on the rise, labor department officials saying they are pro-union, power plants might be forced to close, housing values are still dropping, banks are sitting on enough cash to tank the dollar and the President wants another trillion dollars in taxes on top of those he has already imposed and won't limit spending.

Wow, I wonder why the market isn't booming?

In a message dated 7/11/2011 7:05:11 P.M. Eastern Daylight Time, no_reply writes:

Wall Street records worst day in a month

[Guest guest]

That this is the worst day in a month doesn't really mean anything statistically

speaking. That the media is noticing that this is the worst day of the month is

significant.

I'm a great believer that people can scent danger on the wind even if they don't

know what it is. The danger is exactly as you have described it.

Administrator

Well let's see: we've got anti-business legislation and regulation being pumped

daily out of DC, crony capitalism is on the rise, labor department officials

saying they are pro-union, power plants might be forced to close, housing values

are still dropping, banks are sitting on enough cash to tank the dollar and the

President wants another trillion dollars in taxes on top of those he has already

imposed and won't limit spending.

Wow, I wonder why the market isn't booming?

[Guest guest]

That this is the worst day in a month doesn't really mean anything statistically

speaking. That the media is noticing that this is the worst day of the month is

significant.

I'm a great believer that people can scent danger on the wind even if they don't

know what it is. The danger is exactly as you have described it.

Administrator

Well let's see: we've got anti-business legislation and regulation being pumped

daily out of DC, crony capitalism is on the rise, labor department officials

saying they are pro-union, power plants might be forced to close, housing values

are still dropping, banks are sitting on enough cash to tank the dollar and the

President wants another trillion dollars in taxes on top of those he has already

imposed and won't limit spending.

Wow, I wonder why the market isn't booming?

[Guest guest]

What people see is the value of their houses dropping, houses around them that have been for sale for over a year, gas prices edging up, food prices edging up, and more people relying on credit cards. I'll look for an article or two to post later.

But I think that with more people going into deeper credit card debt that a new bubble is also building. If the economy doesn't turn around then those cards will begin to be defaulted on. As banks start eating those losses we'll be in for another round of trouble. Add to that the continuing drop in housing prices and other economic slowdowns. If these things all converge, particularly with a government default, then it could get interesting. I really don't think the government default will have much effect by itself though, although the bureaucrats could make it painful if they wanted to in order to punish/terrorize the populace. A ratings downgrade would be more painful.

In a message dated 7/11/2011 10:03:34 P.M. Eastern Daylight Time, no_reply writes:

I'm a great believer that people can scent danger on the wind even if they don't know what it is. The danger is exactly as you have described it.Administrator

[Guest guest]

" A ratings downgrade would be more painful. "

I don't believe so. The US's credit rating should be junk status, which truly

describes its ability to pay back to entities it borrowed from. Instead, it has

a much higher rating. It's a dishonest label.

Administrator

[Guest guest]

I agree. My point those was that it would increase interest rates and that would hammer the citizens for the criminal incompetence of the elite.

In a message dated 7/12/2011 6:33:02 P.M. Eastern Daylight Time, no_reply writes:

I don't believe so. The US's credit rating should be junk status, which truly describes its ability to pay back to entities it borrowed from. Instead, it has a much higher rating. It's a dishonest label.Administrator

[Guest guest]

Here is a quote from one of the articles I mentioned about the continuing destruction of wealth in the US.

Quote

"The Disappearing Black Middle Class" ran the headline over the Chicago Sun-Times story. And the statistics from the Economic Policy Institute were indeed sobering.

In 2007, best year of the Bush era, white households had a median net worth of $134,280, compared with $13,450 for black households.

By 2009, the median net worth for white households had fallen 24 percent to $97,860. For black households, it had plummeted 83 percent to $2,170, a near wipeout.

As Algernon Austin of EPI's Program on Race, Ethnicity and the Economy put it, "In 2009, for every dollar of wealth the average white household had, black households had two cents."

One explanation for this surely is the wave of foreclosures on subprime mortgages, a large share of which were held by African-Americans.

But while unemployment among white men has surged in the Great Recession, among black men it has hit 16 percent, the highest level since the Department of Labor began to keep records in 1972.

End Quote

http://www.cnsnews.com/commentary/article/black-america-vs-obama

This is just one but it has interesting numbers.

Now, one might notice a large difference in the numbers here. I think they are skewed. The reason for that is the numbers seem to include everyone in both races. There are many more white millionaires and billionaires than black. That undoubtedly ticks the numbers up on that side. I'm sure a very large number of whites are well below that official number considering mortgages underwater, credit card debt, etc. I have some associates that seem to be living well, but privately they complain about the massive debt they live with. So, I don't see how the things they own could really be counted as assets, that is the things they have mortgages or loans, etc. on.

Another item not mentioned in this article is how the richer are indeed getting richer and the poor poorer. They howled that about Reagan and still do, but it is truer now that ever. While the middle class is seeing its fortunes decline, the rich are using their connections to rake in more. Of course, the rich are also beginning to feed on each other and that will get both amusing and dangerous as they try to loot each other and the economy suffers for it. It will also hurt because they will start piling money and favors into political campaigns to earn more pull over their enemies.

This is just one of many articles on the decline of the US middle class.

[Guest guest]

Here is a quote from one of the articles I mentioned about the continuing destruction of wealth in the US.

Quote

"The Disappearing Black Middle Class" ran the headline over the Chicago Sun-Times story. And the statistics from the Economic Policy Institute were indeed sobering.

In 2007, best year of the Bush era, white households had a median net worth of $134,280, compared with $13,450 for black households.

By 2009, the median net worth for white households had fallen 24 percent to $97,860. For black households, it had plummeted 83 percent to $2,170, a near wipeout.

As Algernon Austin of EPI's Program on Race, Ethnicity and the Economy put it, "In 2009, for every dollar of wealth the average white household had, black households had two cents."

One explanation for this surely is the wave of foreclosures on subprime mortgages, a large share of which were held by African-Americans.

But while unemployment among white men has surged in the Great Recession, among black men it has hit 16 percent, the highest level since the Department of Labor began to keep records in 1972.

End Quote

http://www.cnsnews.com/commentary/article/black-america-vs-obama

This is just one but it has interesting numbers.

Now, one might notice a large difference in the numbers here. I think they are skewed. The reason for that is the numbers seem to include everyone in both races. There are many more white millionaires and billionaires than black. That undoubtedly ticks the numbers up on that side. I'm sure a very large number of whites are well below that official number considering mortgages underwater, credit card debt, etc. I have some associates that seem to be living well, but privately they complain about the massive debt they live with. So, I don't see how the things they own could really be counted as assets, that is the things they have mortgages or loans, etc. on.

Another item not mentioned in this article is how the richer are indeed getting richer and the poor poorer. They howled that about Reagan and still do, but it is truer now that ever. While the middle class is seeing its fortunes decline, the rich are using their connections to rake in more. Of course, the rich are also beginning to feed on each other and that will get both amusing and dangerous as they try to loot each other and the economy suffers for it. It will also hurt because they will start piling money and favors into political campaigns to earn more pull over their enemies.

This is just one of many articles on the decline of the US middle class.