The economy, is it good or bad. (Page 104/181)
84fiero123 DEC 11, 03:06 PM
Just how many times do you have to see the words to believe it?

As I said before don’t believe it if you want, but we are in bad shape.

I’ll start at the top so you can follow.

WASHINGTON (AP) - The Federal Reserve cut a key interest rate by one-quarter of a percentage point Tuesday, trying to keep the country out of recession.

In its October announcement, the Fed indicated that its two rate cuts might well be all that would be needed to make sure the country was not pushed into a recession.

Many analysts believe the current quarter and the early part of next year will represent the period of maximum danger for a possible recession.

"I think a full blown recession can be avoided but just barely," said David Jones, chief economist at DMJ Advisors. He predicted that the Fed will follow up its expected December rate cut with three more reductions at its first three meetings of 2008.

Still say I don’t know what I am talking about?

Of course you do.

Because you can’t admit when you are wrong.

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Technology is great when it works,
and one big pain in the ass when it doesn't.
Detroit iron rules all the rest are just toys.

84Bill DEC 11, 05:17 PM
Wall Street to Fed: Not good enough
Stocks tank after the Fed cuts rates by a quarter-percentage point, rather than the half some had hoped. Dour comments on the economy factor in too.

Holiday shopping hits the skids
Mall traffic drops dramatically in the final run-up to Christmas, and chain stores see only modest sales increase
NEW YORK (CNNMoney.com) -- After getting off to a fast start last month, holiday sales at some of the nation's largest retailers have slowed to an excruciatingly slow pace and mall traffic has dropped dramatically.

Stores face 'ho-hum' shopping season
After a strong kick-off after Thanksgiving, retailers report mixed sales. Aggressive discounts may follow.

[This message has been edited by 84Bill (edited 12-11-2007).]

84Bill DEC 12, 06:38 PM
Why the Fed bailout might not work
The announced plan to make credit markets more liquid could end up having the opposite effect.
By Peter Eavis, senior writer

NEW YORK (Fortune) -- The Federal Reserve's latest move to make credit markets more liquid could deepen problems in the banking system and actually cause the markets to be even more illiquid.

Wednesday, the Fed, along with other central banks, announced a plan that is designed to enable banks to borrow money directly from the Fed at below-market rates. This will allow a wider range of banks to access Fed credit, and simultaneously allow them to submit a broader range of collateral to the Fed when taking out those loans.
84Bill DEC 15, 10:32 AM
Wholesale prices largest jump in 34 years.

Record spike in energy prices lifts Producer Price Index 3.2% in November, much higher than forecast; core prices also top estimates.

Wholesale prices saw their biggest jump in 34 years in November, according to a government inflation reading Thursday that came in much higher than forecast due to a record spike in energy prices.

The Producer Price Index rose to 3.2 percent, up from only a 0.1 percent rise in October. Economists surveyed by Briefing.com had forecast a 1.5 percent increase.

It was the biggest jump in that price measure since August 1973. The key driver in November -- a record 14.1 percent rise in energy prices. The previous record one-month jump in energy prices was in January 1990, on the eve of the first Gulf War.

Gasoline prices were up 15.1 percent in November, but that is a very volatile number. Gas prices were up 17.4 percent in February and down 14.8 percent in August, for example.

Food prices, which had been another source of inflationary pressures recently, were unchanged in the latest month.

But the even more closely watched core PPI, which strips out volatile food and energy prices, also rose much more than expected, jumping 0.4 percent after being unchanged in October. Economists had forecast only a 0.2 percent rise in that reading.

Still the 12-month change in the core PPI actually came down to a 2.0 percent rise, from a 2.5 percent rise in the October reading. The Federal Reserve is generally believed to want to see core inflation readings in the range of 1 to 2 percent.

The Fed uses interest rates in an effort to keep prices stable, and the threat of inflation is one of the factors that stopped the central bank from cutting rates more than the quarter percentage point cut announced Tuesday afternoon. Stocks plunged on that action as investors who had been hoping for a half-point cut were disappointed. And the hotter than expected PPI number led to further declines on Wall Street Thursday.

"The core is worse than expected, but on a year over year basis, its in the comfort zone, even if it's at the top of the comfort zone," said Wachovia economist Sam Bullard. He said he believes that the PPI is likely to show a decline in the December reading due to a retreat in gasoline prices so far this month.

The inflation reading comes the day before the government's key inflation reading on the retail level, the Consumer Price Index, or CPI. That report, which is less volatile than the PPI, is forecast to show a 0.6 percent in the overall CPI, and a 0.2 percent rise in core CPI.
84Bill DEC 15, 10:47 AM
Greenspan: Odds of recession are climbing
Former Federal Reserve Chairman says pace of economic growth nearing 'stall speed,' increasing the risks of recession.

WASHINGTON (AP) -- Former Federal Reserve Chairman Alan Greenspan says the odds the U.S. will fall into a recession are "clearly rising" and he believes economic growth is "getting close to stall speed."

Greenspan, who ran the central bank for 18 1/2 years, until early 2006, offered his views on the economy in an interview on NPR News' Morning Edition that will air on Friday. Excerpts of the interview were released on Thursday.

A severe slump in the housing market, a stubborn credit crisis and turbulence on Wall Street are endangering the country's economic health. Growth in the current October through December period is expected to have slowed to a feeble pace of just 1.5 percent, or less.

Economists, including Greenspan, have warned that the chances of a recession are growing.

Asked whether the economy will tip into a recession -- something that has not happened since 2001 -- Greenspan said, "It's too soon to say, but the odds are clearly rising."

He said he felt this way because of the slowing pace of growth. "We are getting close to stall speed," he said. "We are far more vulnerable at levels where growth is so slow than we would be otherwise," he added. "Indeed, it's like someone who has an immune system that's not working very well is subject to all sorts of diseases and the economy at this level of growth is subject to all sorts of shocks."

Greenspan's remarks come just days after the Federal Reserve, under Chairman Ben Bernanke, sliced a key interest rate for a third time this year to prevent the housing and credit troubles from sinking the economy.

The situation poses the biggest challenge yet to Bernanke since succeeding Greenspan in February 2006.

Some analysts have questioned whether Bernanke waited too long to cut the Fed's key rate and whether he has acted aggressively enough to soothe the economy's woes. The Fed initially dropped its key rate in September, the first reduction in four years. That was followed up by additional rate cuts in late October and then again on Tuesday.

Greenspan again rejected criticism that his policy actions helped to feed a housing boom that eventually went bust. Critics say Greenspan held interest rates too low for too long after the 2001 recession.

To have prevented such euphoria in housing that fed a bubble in prices, Greenspan said the Fed would have had to jack up interest rates so high that it would have damaged the economy. "That would have broken the back of the economy, and brought the housing boom down," Greenspan said. To top of page
84Bill DEC 17, 05:47 PM
"Higher" Inflation? "Lower" growth.

Stocks knocked back
Wall Street wilts as investors worry about higher inflation, lower economic growth.
NEW YORK (CNNMoney.com) -- Stocks tanked Monday, building on the previous week's declines, as investors continued to worry about the economic outlook amid rising inflationary pressures and slower growth prospects.

The Dow Jones industrial average (INDU) lost 1.3 percent. The broader S&P 500 (INX) index lost around 1.5 percent. The tech-fueled Nasdaq (COMPX) composite lost 2.3 percent.

Treasury prices rose, lowering the corresponding yields as investors sought safety in government debt. The dollar was mixed versus other major currencies. Oil prices slipped and gold prices rose.

Stocks tumbled Friday at the end of a tough week, after a report showing higher consumer inflation raised bets that the Federal Reserve won't be able to keep cutting interest rates, even as the economy continues to struggle.

Those worries remained in place Monday, as investors sorted through the day's economic news and mulled the Fed's first credit auction.

"We're just in that rut right now, where people are worrying about credit and buyers are waiting for a bottom," said Ron Kiddoo, chief investment officer at Cozad Asset Management.

He said that stocks are likely to remain in a funk through the Christmas holidays.

On the upside, "sentiment has grown so negative that the market will likely react well to any good news that comes out over the next few weeks," said James Shelton, chief investment officer at Kanaly Trust Company.

The Federal Reserve offered $20 billion in 28-day credit through an auction Monday. The goal is for commercial banks to borrow from the Fed and then boost their lending to businesses and consumers. Results will be released Wednesday.

The series of auctions are part of the central bank's ongoing efforts to loosen up tight credit markets. Last week, the central bank also cut interest rates for the third time in a row since September as a means of adding liquidity to the banking system and tempering the risks to an economic recession.

But investors are worried that the Fed may have to put the brakes on its rate-cutting campaign, particularly if inflationary pressures keep rising. Former Fed Chairman Alan Greenspan said Sunday that the economy was at growing risk for stagflation - an environment in which the economy must contend with rising inflation and slower growth.

Meanwhile, Monday's economic news was mixed.

The New York Empire State index fell to 10.3 in December from 27.4 in November, a steeper-than-expected decline in the regional manufacturing read.

A separate report showed that the third-quarter current-account deficit narrowed more than expected.

And an afternoon report showed that homebuilder sentiment in December remained at a record low for the third straight month.
84fiero123 DEC 17, 08:22 PM
Bush Says US Economy Is Safe and Sound

"Instead of taking action, President Bush says the economy is safe and sound," said House Democratic Caucus Chairman Rahm Emanuel. "Middle-class Americans and economic experts all agree on something the president still refuses to admit: the economy is struggling and families need real help."

http://apnews.excite.com/ar...71217/D8TJF7NG0.html

Keep listening to those in charge, they know what their doing.

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Technology is great when it works,
and one big pain in the ass when it doesn't.
Detroit iron rules all the rest are just toys.

aceman DEC 17, 08:30 PM
Rahm Emanuel is in charge of the Democratic Caucus.

I'll use your sage wisdom and not listen to him. He, too, is in charge of something and doesn't know what he's doing.
84Bill DEC 17, 08:37 PM

quote
Originally posted by 84fiero123:
Bush Says US Economy Is Safe and Sound



That doesnt surprise me in the least. He is so out of touch with the people its not even funny.
84Bill DEC 17, 09:24 PM
Have we hit bottom yet?

Homebuilders' index scraping bottom
December reading of U.S. builders' sentiment comes in at record low for third straight month.

WASHINGTON (AP) -- A December reading of U.S. homebuilders' sentiment remained at a record low for the third straight month.

The National Association of Home Builders said Monday its housing market index, which gauges builders' perceptions of conditions and expectations for home sales over the next six months, came in at 19 in December. The number was at the lowest level since the index began in January 1985.

Index readings higher than 50 indicate positive sentiment. The seasonally adjusted index has been below 50 since May 2006, and declined for eight straight months this year, and has been unchanged since October.

Tighter lending standards, rising defaults among borrowers with weak credit and a sense of worry about the housing market's future have meant fewer buyers for hard-hit homebuilders such as D.R. Horton (DHI, Fortune 500), Pulte Homes (PHM, Fortune 500) and Centex (CTX, Fortune 500).