Re: economy of Yes vs. economy of No

Posted by JR on November 06, 2009 at 14:00:42:

In Reply to: Re: economy of Yes vs. economy of No posted by rono on November 06, 2009 at 08:19:17:

Looks to me that the initial absolute freeze that engulfed the markets and the overall population has melted away. Now those who still have jobs are a bit more relaxed and started spending again -- pent up demand i guess. Those who don't of course -- another story. Some jobs will never come back, whether it is the outsourced manufacturing, or the overpopulated over-complicated structured finance.

On the other hand, if the US Dollar falls low enough, it will be again cheaper to manufacture in the US and we might see the re-birth of the sector!

all jokes aside, i do believe in a "new normal". there will be long term consumer deleveraging trend, increase in savings, taxation, less spending and less growth.

good luck to all of us!

: Howdy,

: For a few years now there have been two parallel economies that I've referred to as Yes and No.

: If you and spouse are working with benefits, retirement, 401K, have an IRA and some savings, fixed mortgage, kids are in school . . . life is pretty good.

: If you worked at the plant that shipped your job overseas, and then in construction until the housing market puked, you have no benefits or retirement, you cashed out your 401 to pay the mortgage as long as it lasted, wifey works at Walmart making $10 an hour, no IRA, no savings, home in foreclosure, son on drugs and daughter preggo . . . life sucks.

: Alas and alack, too many people in the latter category and what's worse, most in the former don't even realize the latter exists.

: peace,

: rono

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Comments:	: Looks to me that the initial absolute freeze that engulfed the markets and the overall population has melted away. Now those who still have jobs are a bit more relaxed and started spending again -- pent up demand i guess. Those who don't of course -- another story. Some jobs will never come back, whether it is the outsourced manufacturing, or the overpopulated over-complicated structured finance. : On the other hand, if the US Dollar falls low enough, it will be again cheaper to manufacture in the US and we might see the re-birth of the sector! : all jokes aside, i do believe in a "new normal". there will be long term consumer deleveraging trend, increase in savings, taxation, less spending and less growth. : good luck to all of us! : : : Howdy, : : For a few years now there have been two parallel economies that I've referred to as Yes and No. : : If you and spouse are working with benefits, retirement, 401K, have an IRA and some savings, fixed mortgage, kids are in school . . . life is pretty good. : : If you worked at the plant that shipped your job overseas, and then in construction until the housing market puked, you have no benefits or retirement, you cashed out your 401 to pay the mortgage as long as it lasted, wifey works at Walmart making $10 an hour, no IRA, no savings, home in foreclosure, son on drugs and daughter preggo . . . life sucks. : : Alas and alack, too many people in the latter category and what's worse, most in the former don't even realize the latter exists. : : peace, : : rono
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