Economic stimulus naysaysers!

More positive news today.
U.S. home prices rise for a second straight month

REUTERS — 9:05 AM ET 08/25/09
"NEW YORK (Reuters) - Prices of U.S. single-family homes rose for the second consecutive month in June, adding to evidence that the three-year housing slump is easing, Standard & Poor's reported on Tuesday.
The S&P/Case-Shiller composite indexes of 10 and 20 metropolitan areas both rose 1.4 percent in June from May, almost three times the 0.5 percent increases of the month before. May's increases were the first in nearly three years.
The 10- and 20-city indexes have dropped 54.3 percent and 45.3 percent from their 2006 peaks, respectively.
S&P also said its U.S. National Home Price Index recorded a 14.9 percent decline for the second quarter, compared with a 19.1 percent year-over-year drop in the first quarter.
Compared with the first quarter, though, prices rose by 2.9 percent, marking the first such increase in three years."



Consumer confidence rises above forecast in August

REUTERS — 10:06 AM ET 08/25/09
NEW YORK (Reuters) - U.S. consumer confidence climbed more than expected in August on an improved outlook on the job market and the overall economy, according to a private report released on Tuesday.
The Conference Board, an industry group, said its index of consumer attitudes rose to 54.1 in August from an upwardly revised 47.4 percent in July. The July figure was originally reported at 46.6.
Analysts had predicted the index likely moved up to 47.5 in August.
The August reading on consumer sentiment was the loftiest since May when it was 54.8.
The survey's present situation index edged up to 24.9 in August from 23.3 in July, while its expectations component jumped to 73.5 -- the highest since December 2007 when it was at 75.8 -- from 63.4 in July.
Fewer Americans said jobs were "hard to get," the survey found, with that measure slipping to 45.1 percent from 48.5 percent. Those saying jobs were plentiful rose to 4.2 percent, from March's 3.7 percent.




Markets are up again testing yesterdays interday highs.



Also in Todays news was this:

Obama renominates Bernanke as Fed chief
 
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As your confidence rises, mine plummets. A recovery right now without a fundamental change in the way we do things will lead to the death of our nation. Make money while you can, it'll be worthless soon enough.
 
Ecomike said:
Seems I am the only one here that is bullish on the stock market, and the recovery, which is fine with me. Just me tells that I am right, as it means stock prices did bottom, as they always bottom when the public is the most pessemistic about the future. I all see here (other than me) is absolute stark pessemism. If you go back and check I was talking about buying stocks for the first time since 1987, here at the beginning of the year (and very late last year). The markets are at new highs for the year, and are up nearly 50% since the crash bottom on March 9th.

I have been buying stocks since about March 15th, and have not sold anything I bought since then.

On the jobs report, for all the naysayers and pundits here, the drop in unemployment was also the result of a MAJOR drop in layoffs (like about a 65% drop from recent highs), not the other government number rigging you have referred to (which is sometimes the case, but not the entire story this time, if at all!). The point is, investors are coming back and business is turning around, which means jobs are coming back. This is just the kind of news the market needed right now.

So go ahead, keep your heads in the sand (or is it rocks and mud here, I forget?).

Kastein,

I agree there are major house bargains out there now, and great interest rates, and deals. Just make sure the garage is big enough for several jeeps!:wave1:
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I'm betting on this being a secular bear market period; I think we are on a short bull run right now and it will turn around and go even lower soon. Of course, I have been saying this since a few weeks after the market started going up again, and it hasn't really stopped, so I could be entirely wrong.

As for the garage... the place I'm currently looking at doesn't have one :( but it's got plenty of land and building an unfinished garage is not all that expensive.

EDIT: also - Obama is not to blame for this recession/depression/whatyoucallit. I would personally blame at least Bush, Clinton, Bush Sr, and Reagan, and possibly even further back for this - the seeds of this recession were sown long, long ago and it just took a long time to come back at us. Too much borrowing and not enough creating has been going on in the private sector for a long time. My favorite article on the issue is http://www.portfolio.com/news-marke...folio/2008/11/11/The-End-of-Wall-Streets-Boom
 
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"The current financial crisis is in large part due to the fact that we’re a society that loves to live beyond its means. It’s the American way to buy more home than is necessary and run-up the credit card bill to pay for a family vacation.
Credit became way too easy during the run-up to the financial crisis, but credit isn’t going away. It’s simply taken a breather. That’s because everyone in the federal government and on Wall Street is rooting — almost urging — for Americans to start spending again.
For good or ill, credit and spending is the lifeblood of a consumer economy. Yet sadly, the only real solution policymakers have for ending the economic crisis is to encourage people to starting living off their plastic cards again.
And that’s why deficit spending by the federal government is probably here to stay for a long time. The government is only doing its part to help."

So, let me get this straight......our Government and citizens in large, are over-extended financially, so the solution is to keep doing the same thing, and expect a different outcome?

Since I've heard the same logic expressed by some here, I thought I would see if it still makes sense to them when they read it, instead of speaking it...... :dunno:
 
That is something I will always hate and never understand. I currently have no credit cards, no debt except for student loans (which I am paying off 50% faster than I need to), and will only be looking at buying a house because these are the best prices I'll be seeing in my lifetime most likely and the mortgage will cost me less per month than renting presently does - even paying it off in five years. I refuse to dip into my savings if I have less than six months' living expenses in the account. I suppose I am contributing to the economic slowdown by saving my money instead of spending it recklessly.

Why exactly do people think they should continue to live beyond their means? It only further inflates the dollar and is completely unsustainable.
 
kastein said:
That is something I will always hate and never understand. I currently have no credit cards, no debt except for student loans (which I am paying off 50% faster than I need to), and will only be looking at buying a house because these are the best prices I'll be seeing in my lifetime most likely and the mortgage will cost me less per month than renting presently does - even paying it off in five years. I refuse to dip into my savings if I have less than six months' living expenses in the account. I suppose I am contributing to the economic slowdown by saving my money instead of spending it recklessly.

Why exactly do people think they should continue to live beyond their means? It only further inflates the dollar and is completely unsustainable.
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Good for you, don't drink the cool-aid.

The Progressives in control in Washington have created a machine that can only continue to operate at it's current pace, if the US consumer continues to spend money they don't have (and they are willing to just loan themselves more money i.e printing more as a bandaid on the massive hemorage that is coming).......ironic, folks are going bankrupt and getting foreclosed on, when they act in the same manner as our US government.....spending money that they don't have on stuff they don't really need. Even more ironic is that the government created this sub-prime scheme....which seemed to work quite well, as designed.

It's all part of their plan to break down the economic system (and destroy Capitolism) which will allow the government control and takeover of every facet of our lives. Little by litlte, piece by piece, your Freedoms are disappearing. Nationalized healthcare is also part of the plan..........

Got Marxism?
 
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Are there any desert islands I can discover and create my own country on?
 
But the job loss rate is still dropping. Last number was near 200,000 for the last month, a far cry from the apx 760,000 peak we had earlier. And a lot of other economic indicators have turned positive the last few weeks.
 
well let's see the first half of your original post claiming that stimulus was working

OK, Got your attention. Guess what folks?

News just hit Wall street this morning that the unemployment rate report showed a drop from 9.5 to 9.4%!
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Now that it is up to 9.7% it's no longer evidence of anything....

oh and the previuos months were revised upwards
 
ehall said:
well let's see the first half of your original post claiming that stimulus was working



Now that it is up to 9.7% it's no longer evidence of anything....

oh and the previuos months were revised upwards
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If I had all the data, and a graph plot I could show you what I mean. Back in March investors were paniked that the monthly job loss rate was still increasing month to month. The job loss rate stopped increasing, and started decreasing, and is now about 30% of it's peak rates in the first quarter. When I started this thread the report was that the unemployment rate had actually changed directions finally for the first time in a long time. Just a blip on the radar screen yes, but the job loss rate is still dropping, and soon, maybe over the retail shopping holidays, we may finally see more new jobs than lost jobs on a weekly basis for a while. One can hope at least. Projections in March showed we were headed for job losses of 1,000,000 a month. A job loss rate change fron 760,000 a month to 200,000 a month is significant. And like I said, all the other economic indicators I have read lately were turing positive, unless you make a living drilling for natural gas, which is pretty much in the cellar right now. Only time will tell.

IIRC I read somewhere that the normal job loss rate in a recovery, expanding US economy is around 200,000 a month. All that is missing now is for businesses to start rehiring at a faster rate. Some have already added factory shifts, and added ovetime, which usually preceeds adding new employees.
 
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I just posted up a new thread that I think people on both sides of this endless debate can get excited about.
 
Well I just did my part to stimulate the economy. Bought a brand new laptop. Compaq Presario CQ60-410US. So much for win98, LOL.
 
This is what, September, yea, that gets the unemployed off the rolls who started collecting in January and February, it will continue to decline as the clowns in DC have not signed any more extensions for UI so as soon as they come off the rolls they MUST be back to work right ? :D :D :D
As for it working, hmmmm, take 500 rich people each with a grand in their pockets, then take 500 poor people with empty pockets, sit em in a room, take most of the money away from the rich people and give it to the poor people, question, is there more money in the room ?
BIgger question is, are the rich people ever going to bring full pockets to the next meeting.... :D :D :D :D
:D
 
And how fast would the poor people 'invest' the money in flat screens, cell phones, rims, fart cannon mufflers, tats, fancy sneakers, or outlandish eyeglass frames and eagle-talon fingernail extensions?
 
A few bits of news from Routers today
REUTERS — 9:20 AM ET 09/10/09

By Doug Palmer

WASHINGTON (Reuters) :

"The July trade gap remained far below the record of $64.9 billion set in July 2008, just before the global financial crisis took a huge bite out of international trade.

U.S. exports also increased for the third consecutive month in July to $127.6 billion, a rise of 2.2 percent from June.

Goods exports had their best showing since December, led by increases for autos and auto parts and capital goods."
 
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