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TMFEditorsDesk (< 20)

The Recession is Over! Plus Clunkers and Illegal Activities

Recs

5

July 31, 2009 – Comments (4)

Let's jump right into the top story..

Rejoice! It's going to be OK! 

The economy sank at a pace of just 1 percent in the second quarter of the year, a new government report shows. It was a better-than-expected showing that provided the strongest signal yet that the longest recession since World War II is finally winding down.

http://www.fool.com/news/associated-press/2009/07/31/recession-eases-gdp-dip-smaller-than-expected.aspx

But who cares? Most sure don't. Stocks are barely up this morning following this news. Given the 6% rally over the past two weeks, this new report didn't surprise investors. Instead, investors have been celebrating better than expected earnings announcements from companies, shooting the market up. Apparently, it's time to party like it's 2004. Do you think  the recession is winding down or do you think we're headed for another dip in the market? Let us know below.

Bring out yer clunkers 

Have you also been innudated with "Cash for Clunkers" ads? The program -- which is supposed to help stimulate the auto economy -- officially kicked off last week and was slated to run until November 1st. However, after less than two weeks, car dealers may have already surpassed the magical number (250,000) of cars to be funded by this program. It seems that America has a lot of clunkers. What's behind link #2? A new car!

http://www.fool.com/news/associated-press/2009/07/31/cash-for-clunkers-program-may-be-running-on-empty.aspx

Sad, sad, sad industry 

Stories like this infuriate me. True, maybe users shouldn't be downloading music illegally, but the practice of illegally downloading music seems to be the accepted norm according to a report written by a 15 year old intern of Morgan Stanley. Music companies should stop whinning and invest their legal fees into something more meaningful. Enough already! Clearly their legal proceedings haven't been enough of a deterrent to the younger music consumers.  

- Katrina (TMF Toast) doesn't own shares and actually still owns CDs. She's waiting for them to make a comeback like the cassette tape.

4 Comments – Post Your Own

#1) On July 31, 2009 at 11:24 AM, ChannelDunlap (< 20) wrote:

Do you think  the recession is winding down or do you think we're headed for another dip in the market?

Both.  I think the recession is winding down, but the recent rally has been too far too fast and we're bound to pull back a little before she take off again.  Or at least, I hope, since I've already started trading in expectation of it.  (Come on SPXU!)

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#2) On July 31, 2009 at 11:27 AM, Gingerbreadman55 (25.88) wrote:

Whats the difference between me downloading music and recording it off the radio?

Nothing.

I agree, those stories are simply ridiculous.

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#3) On July 31, 2009 at 12:04 PM, davejh23 (< 20) wrote:

Do you think  the recession is winding down or do you think we're headed for another dip in the market?

Neither.  I'm certain that the recession is not winding down, but I wouldn't bet on a dip in the market.  Maybe we're pricing in inflation expectations.  I wouldn't be suprised to see a huge decline, but I also wouldn't be suprised to see the market continue to rally on no good news.

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#4) On July 31, 2009 at 12:45 PM, garyc27 (< 20) wrote:

Do you think  the recession is winding down or do you think we're headed for another dip in the market?

I think the recession's pace has slowed. 

I think we have yet to realize the full extent of the retail property and associated mortgage problems.

In residential real estate foreclosures continue, the next round of ARM resets is going to be a continuing problem for the economy.  Washington, once again, is threating the banks to stop the foreclosures by adjusting mortgages down to the current property value.  If the D.C. Wizards get their way we will see banks back in trouble.

 Unemployment has not abated and will continue well into 2010.  In addition, a large number of 2Q09 earnings have been derived from cost cutting not from significant increases in the top line. 

Washington is considering stimulation part 2, where we get the money for this is beyond me. 

We are headed for a serious dip in the form of recession part deux.

Just my $.02

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