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alstry (36.57)

America Shutting Down-Nobody Cares?

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June 12, 2008 – Comments (9)

Auto Companies Shutting Down......Airlines Shutting Down.....Banks Shutting down....Construction Companies Shutting Down.....Mortgage Companies Shutting Down....Retailers Shutting Down......Restaurants Shutting Down

Employees getting fired by the tens of thousands.  Foreclosures outpacing sales.   Home  values imploding.

Government Deficits Skyrocketing....And now the Fed wants to RAISE interests rates??  Yeah Right......

 

"We need to take steps to insure that inflation does not get out of control," [Federal Reserve President Charles Plosser] said in an interview on the CNBC television network. "We need to act preemptively."
...
Plosser said Thursday the inflation threat facing the U.S. economy "is serious."

"Inflation has been gradually been creeping up and more than just in oil and food," he said. "The base of inflation is broadening."

 

With  mortgage rates approaching multi month highs.....what do you think will happen if the Fed preemptively raises interest rates?????

 

9 Comments – Post Your Own

#1) On June 12, 2008 at 7:24 PM, hansthered0 (< 20) wrote:

What can you do though?

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#2) On June 12, 2008 at 7:37 PM, Imperial1964 (98.29) wrote:

The Fed and Treasury are just trying to talk tough to stem the decline in the dollar.  They aren't about to actually do anything about it anytime soon.

We're in for some stagflation unless demand destruction takes over.

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#3) On June 12, 2008 at 8:42 PM, EScroogeJr (< 20) wrote:

A very good thing will happen The enourmous gap between the fair price of housing and its market price will become a little less outrageous.

Scrooge,

who thinks the Fed won't raise rates this year - for that very reason. 

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#4) On June 12, 2008 at 8:49 PM, FourthAxis (< 20) wrote:

Brother, you're gonna have to be patient.  I've simply grown tired of yelling into the forest...and just document my thesis now.  Regardless of what your view is, someone will always think your wrong.  When suddenly you find yourself a contrarian, hopefully more think your wrong than right.  Because there are fundamentals and then there is perception.  :)

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#5) On June 12, 2008 at 10:34 PM, leohaas (31.28) wrote:

"Auto Companies Shutting Down......Airlines Shutting Down.....Banks Shutting down....Construction Companies Shutting Down.....Mortgage Companies Shutting Down....Retailers Shutting Down......Restaurants Shutting Down

Employees getting fired by the tens of thousands.  Foreclosures outpacing sales.   Home  values imploding."

Isn't that just capitalism at work? 

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#6) On June 12, 2008 at 10:46 PM, alstry (36.57) wrote:

This difference this time is that it is built upon an unprecedented pile of debt.  At the same time, incomes have been stagnant for seven years while costs have skyrocketed.

Revenues are now starting to contract resulting in individuals, business, and government unable to meet debt obligations.  As revenue shrinks, debt consumes a bigger and bigger percentage of income leaving less and less to spend on goods and services.

We are now at the edge of what could be the biggest wave of bankruptcies in American history.  We are seeing the stress everywhere.

It is amazing we have contracted to this level and so few are really aware.  It is as if everyone believes this too will pass.....unfortunately it hasn't really arrived yet.

As the storm is now crashing upon the shore, maybe people will soon really start to think this time really is different.

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#7) On June 13, 2008 at 1:14 AM, eldemonio (97.96) wrote:

Let's look on the bright side.  Now with fuel prices so high, and the dollar so low, we can finally compete with the rest of the world and boost manufacturing.  Sure, we're losing jobs right now, but wait a few months and companies will figure it out.  More manufacutring jobs will move back to the US.  Hell, we might even get some Chinese and Indian companies opening plants here in the US. 

This recent downturn is just part of the master plan to gradually move our gluttonous consumer driven economy to a more production based economy.

 Things seem pretty gloomy, but fortunately for us, we have a government that protects us by telling us half-truths and lies.  Good thing, I don't think I could handle the truth.

 

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#8) On June 13, 2008 at 2:38 AM, DemonDoug (32.36) wrote:

what you can do is invest in the companies that will be owning the indentured servant population of the US and the rest of the world.
  Don't kid yourselves... this is what the stock market is all about.  You've nailed it on the head scrooge.  And inflation takes 6 months to work through the system - it's likely we've got significantly more inflation coming on the way.

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#9) On June 13, 2008 at 5:25 AM, DemonDoug (32.36) wrote:

and as i have just added a couple of bucks to my brokerage, as I look around I have found one screaming buy, and about a half dozen stocks that are definitively in my "buy" zone.  i must be going crazy or something.

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