The Economy - is it really that bad?

[elevatethis]

From that chart it is $5.79 per gallon/in USD. That is only 3.36 GBP(Great British Pounds). Its almost half of what we pay, but thats because of inflation of the USDollar.

Those are already adjusted prices. Fuel costs in Europe have been extraordinarily high for a long time compared to the US.

[Brimstone111888]

So, I guess how bad the economy is depends on who you ask...

If you ask my friends that have finally been able to afford homes in the new, lower market, I'd say its pretty good for them. A lot of real estate people will also admit that the market has been grossly inflated for a long time in many places.

Exactly, it is a awesome time for buyers right now, with low interest rates. But if the trend keeps it up, the houses people are buying now could go lower and lower in value.

A lot of this has also come from the war. There is much more focus and spending in foreign affairs overseas, than in the US itself. The economy has been almost neglected for the past 8 years and this is what happens.

Those are already adjusted prices. Fuel costs in Europe have been extraordinarily high for a long time compared to the US.

True, I goofed there. Also take into account, there are many less drivers in Europe. Many people ride bikes, or walk. Also their cars are smaller and more efficient. A lot of peoples gas woes are from their own ignorance of driving a Hummer.

[Gloryhound]

Heavy hits are isolated to certain areas, but it is trickling down through the price increases for everything and raises getting smaller for the majority of people. Last year the average end of year raise was only 2.5% the year before that it was 3.75%. You take that and the average increase in the cost of goods due to inflation and rising gas prices and you find out your pay check does not pay for what it did the year before and that is after the small raise you got. This is generally a sign of an economy going bad. Also the market has made a serious correction / drop into recession territory which generally indicates money is not moving like it used to!

[ivylea77]

If you ask my friends that have finally been able to afford homes in the new, lower market, I'd say its pretty good for them. A lot of real estate people will also admit that the market has been grossly inflated for a long time in many places.

Ofcourse it's good for them. Houses are more affordable now than ever. Like many others have seen, houses are being sold, because mortgages can't be paid, leaving sellers no option but to sell at lower prices. I wish I had bought our new house today rather than two years ago...I could have saved 20,000.

I shudder with the thought of another interest rate cut, it's such a band-aid solution. I truly believe America is in for a wake up call.

[jkobylka]

I think the economy is bad only in perception. the experts tell us about worrysome numbers, the american ppl get nervous and stop making big or investment purchases and suddenly there is an ACTUAL problem.

What us little ppl are feeling is not a bad economy, its high gas prices.

Justin

[elevatethis]

I think the economy is bad only in perception. the experts tell us about worrysome numbers, the american ppl get nervous and stop making big or investment purchases and suddenly there is an ACTUAL problem.

What us little ppl are feeling is not a bad economy, its high gas prices.

Justin

I agree completely...

There is the issue of middle america feeling the crunch with all of the big manufacturing industries laying off workers, but this is nothing new....

I don't think that the media is helping much by reporting every small jitter. The reality is that most of the audience they report to don't even fully understand the dynamics of interest rate cuts or how the fed affects financial markets. They paint such a grim picture that it naturally starts to affect people's perceptions.

[dr del]

From that chart it is $5.79 per gallon/in USD. That is only 3.36 GBP(Great British Pounds). Its almost half of what we pay, but thats because of inflation of the USDollar.

Those are already adjusted prices. Fuel costs in Europe have been extraordinarily high for a long time compared to the US.

Hi,

I know those prices were from 2005 so I just went and worked out the cost of petrol (unleaded) in my area at the moment.

It's a bit tricky as it's priced in litres and I work in gallons (add to that british gallons and US gallons are different ) but after a pile of convertors here is the actual current UK price;

$8.10302 per us gallon.


dr del

[wilomn]

Has anyone noticed just WHO is making record breaking profits EVERY quarter?

Big Oil.

I wonder what would happen if we took 10% of what we are spending on this "war" and put it into creating jobs here?

I also wonder what would happen if we leveled the playing field and started charging REAL tariffs, just as we are charged when we take our products overseas.

I wonder too, oddly enough, just WHO is profitting by our lack of a level playing field.

Actually, I don't wonder at all, I'm just a cynical sarcastic caustic disgruntled Citizen of what used to be the best country in the world.

Hey, nafta was pretty cool too, wasn't it? That was BRILLIANT!!!

[neilgolli]

ahh I guess it depends on where you live and what econoic and social background you have. If your in the upper middle to omg wealthy your proably going to be fine for the next six months or so but with the housing market loosing value for the first time in at least the last 50 years if not ever,I see things starting to go down hill faster and faster. Living in ohio and being from Michigan and hear and seeing the effects of the layoffs that are hitting the area shoot over 3000 in toledo in the last two months things are really starting to hurt for you average working family. With the rising price of desiel and gas the cost of food is going to rise significgantly in the next six months to a year. Combine all this with the increased planting of corn for fuel use, wich is causeing wheat to be in shorter and shorter supply you are going to see the prices of your basic breads cereal and everything that needs flour to be made rising steadily in the next year. If we are not in a depression just yet we are in the middle of a strong recession,and since the money that has been made is bascily paper and fictional stock money, with less and less being spent on the infrasturcre of manufacturing the bottom is going to fall out sooner then latter for a majority of us americans. Big business Is sending jobs overseas faster and faster to promote cheaper goods and the rising economic growth and market in places in china and other devloping countries that are where america was 30 to 40 years ago moving forward and there developing ecomony is going to produce many many markets for these products.The rulers of this country that top one to two percent of this country will stay rich so they don't care what happens to the working man of this country they can make their money from anywhere in the world so why put it back into this country.

The problems of Michigan began two decades ago when they (auto makers) started turning out total and utter junk. They opened the doors for better more economical alternatives. The unions demanded more and more and before you knew it, the big auto companies were financing cars for free just to turn and burn them. They were loosing $1200 on every car that went out the door and instead of being able to (scary word) FIRE people, they were forced to pay out big compensation packages and that just put more and more pressure on the bottom line. They are improving, however they now have worldwide competition and it will not come back the same, that's not the governments fault. Companies need to make a profit, this is still america and not yet a socialist nation........

Ethanol is the worst idea this country has swallowed in a long long time. It takes 8 gallons of actual gas to make 10 gallons of ethanol and the consumption of corn in this process has and will continue to rise the cost of other goods far greater than the 20%fuel production.

We are not in a depression, technically we are not even in a recession yet, will we actually get there? Who knows, I do think its going to get worse before it gets better BUT I've not seen any kind of slow down in my business. In fact, my sales for the first quarter of this year are double what they have ever been. I'm selling a ton of things overseas because of the low dollar and finally taking some of our money back from over the pond rather than sending it over there.

[neilgolli]

Has anyone noticed just WHO is making record breaking profits EVERY quarter?

Big Oil.

I wonder what would happen if we took 10% of what we are spending on this "war" and put it into creating jobs here?

I also wonder what would happen if we leveled the playing field and started charging REAL tariffs, just as we are charged when we take our products overseas.

I wonder too, oddly enough, just WHO is profitting by our lack of a level playing field.

Actually, I don't wonder at all, I'm just a cynical sarcastic caustic disgruntled Citizen of what used to be the best country in the world.

Hey, nafta was pretty cool too, wasn't it? That was BRILLIANT!!!

A recent study found that 41% of people that own stocks be it individual stocks, mutual funds or who had 401k's owned Exxon and other "big oil" companies. They pay large dividends and their share price has risen. Their profits have ended back into individuals hands. Its the great think about America is that big business is not just big business, if you want a share of it, you can literally buy a share of the companies stock.... Profits have not risen due to higher oil costs as they don't control the price nor does the government, profits have rose because demand has continued to rise even as prices have.

The government creating jobs is not a good thing either, the less government does the better. Bailing out home owners and speculators, giving people free passes for their mistakes only pacifies the problem and does not create a long term solution. Life is about lessons and sometimes lessons are learned by falling on your face, if the government is there to hold a pillow for you everytime you fall, just like a baby you expect a cookie everytime you cry, you'll end up living at mom's and dads house forever or need government handouts for the rest of your life.