Economy is REALLY, REALLY, REALLY In Trouble

[Kid Dakota]

You have production going down but at the same time prices increasing. I think stocks are going to drop a lot lower over the next year until the Fed decides a decrease in interest rates will spur inflation. Aggree / Disagree?

[MrBlue]

Are you refering to the numbers released this morning?

US Industrial Production

[Kid Dakota]

I'm referencig the numbers released over the past month, including the CPI numbers released this morning.

[gull]

I think no one knows.

[Strickly Bidness]

i'd rather flush my cash down the toilet than play weak tight and avoid risk in the greatest economic system in the history of humanity. Don't sweat these small things or short-term downturns dude.

[maxtower]

The economy is never strong 100% of the time. The US has pulled out of all past recessions. If you see stock prices dropping this year, you should probably be buying more.

[Kid Dakota]

Not if you believe they'll continue to fall until the beginning of next year.

[BeL0wMe]

[ QUOTE ]
i'd rather flush my cash down the toilet than play weak tight and avoid risk in the greatest economic system in the history of humanity. Don't sweat these small things or short-term downturns dude.

[/ QUOTE ]

QFT, if this minor blip scares you so much, how the hell did you survive the tech bubble and 9/11, in 2000-2002? Honestly stop getting all your panties in a bunch. You should just put your cash in a money market if the state of the economy concerns you so much.

[Strickly Bidness]

[ QUOTE ]
If you see stock prices dropping this year, you should probably be buying more.

[/ QUOTE ]

Thanks, this is what I was trying to say exactly.

[MrBlue]

[ QUOTE ]
March 16 (Bloomberg) -- Industrial production in the U.S. rose last month by the most since November 2005, as manufacturing rebounded and the return of cold weather prompted a surge in utility use.

...

The report suggests factories are making headway in their efforts to reduce inventories, pointing to a rebound in manufacturing that's been a source of weakness for the economy. Improved factory demand backs the Federal Reserve's forecast that growth will strengthen in the second half of the year.



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But hey, let's sell everything because you know, those guys on TV are saying the subprime lenders will cause the economy to go into a recession. Hell even Greenspan is saying we are all doomed. Run for safety!!!1111!1


Subprime Market -- Isolated or a Tipping Point?: Gene Sperling

[ QUOTE ]
Federal Reserve Governor Susan Bies argues that subprime ARMs make up only 7 percent to 8 percent of the $10 trillion dollar mortgage market. Doug Duncan, chief economist of the Mortgage Bankers Association, says that only 6 percent of homeowners hold subprime ARMs. By their logic, even if we saw a 20 percent default rate among subprime ARM holders -- a rate twice as high as the foreclosure peak after the 2001 recession - -that is still just over 1 percent of the full national mortgage market.



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