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| The economy, is it good or bad. (Page 150/181) |
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Pyrthian
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JAN 14, 12:15 PM
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| quote | Originally posted by Phranc:
So how exactly is an increase ie: "growth" bad? |
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tumor?
lol - anyways - it is a tough thing grasp. how much was invested to create the growth? this is the "chistmas" growth, right? which implies extra hours worked by people, sales & giva-aways, and promotions. is the growth enough to cover expenditures to create it.
but, this is just one possibility. I find them articles to be inaccurate & misleading - from both sides.
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Red88FF
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JAN 14, 12:15 PM
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| quote | Originally posted by 84Bill:
Heh...
Just another way of losing an argument and trying to make yourself feel better. |
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Heh, you call others idiots because YOU don't know what growth is then get pissy because of a cheese comment. heh.
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84Bill
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JAN 14, 01:08 PM
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| quote | Originally posted by Red88FF:
Heh, you call others idiots because YOU don't know what growth is then get pissy because of a cheese comment. heh. |
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While that little comment is off color and immature I can assure you that it was not considered in my reply to you. If you cant see that economic "growth" appears to be moving backward (falling @ or below the growth levels of 2002 ) instead of forward or even maintaining the levels of growth in 2007 then it is apparent you dont understand the gravity of what the report is indicating.
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Red88FF
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JAN 14, 01:21 PM
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| quote | Originally posted by 84Bill:
While that little comment is off color and immature I can assure you that it was not considered in my reply to you. If you cant see that economic "growth" appears to be moving backward (falling @ or below the growth levels of 2002 ) instead of forward or even maintaining the levels of growth in 2007 then it is apparent you dont understand the gravity of what the report is indicating.
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Growth is not moving backward, growth means forward motion. I absolutely understand that there is not as MUCH growth. This however more only illustrates a difference between "booming" and "good" indicators for the economy. I do not think anybody here is arguing that things have not slowed, the growth that is, the difference is some think that means backwards and it does not, it IS slower expansion, "espansion" being the key word here. Now if growth in fact did stop, it would be called stagnant.
I am finding it hard to understand why you of all people are letting yourself be manipulated in this way by the wording of all these doom and gloom reports.
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84Bill
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JAN 14, 01:43 PM
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| quote | Originally posted by Red88FF:
I am finding it hard to understand why you of all people are letting yourself be manipulated in this way by the wording of all these doom and gloom reports. |
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I understand that it is dificult to grasp what an "indicator" is but the basic explanation is they are forward views into growth.
If "normal" growth were to continue then the reports need to show growth equal to or greater than expected for the economy to be making any real headway. Each year business crop up, people who work get raises and buy things so growth has a fairly predictable rate. When that growth falls under that prediction then there is a "potential" problem which facilitates further problems in the market such as people selling their stocks to maintain spending. When companies lose value thru income of the sales of their stocks & combine that a drop in product sales they dont have the money or "stock leverage" to borrow against to self sustain and then must lay off. The reason they lay off is to make their books look like they are in the black which is "true" but is not an accurate "indication" of their economic health and purchasing power.
So when the indicators show growth it doesnt mean that the growth has any real meaning if it falls short of the mark. Market speculators have already indicated that due to the "reduced growth" there appears to be a problem. Combine that with massive infusions of money into the market and interest rate cuts to keep it from crashing is further proof that the economy is in a weakened condition.
The doom and gloom as everyone puts it is a warning. Its very similar to "red skies morning, sailors warning."
Prepare for the storm or just say screw it and press on as if nothing will happen and the good ship U.S.economy rounds the horn.[This message has been edited by 84Bill (edited 01-15-2008).]
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84Bill
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JAN 14, 02:22 PM
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Mortgage lending forecast to drop
Previously owned home sales are also expected to fall as banks rack up billions in losses, according to the Mortgage Bankers Association.
WASHINGTON (AP) -- U.S. mortgage lending will fall by more than 16 percent this year, dragged down by a worsening economy and a slumping mortgage market, an industry group predicted Monday.
The Mortgage Bankers Association forecast that U.S. mortgage lending will fall 16.2 percent this year to $1.96 trillion, down from a projected $2.34 trillion last year.
The group also said sales of previously owned U.S. homes will drop by about 13 percent, while median prices fall about 2 percent. New mortgage lending would continue its downward descent in 2009, the group predicted, but home sales and prices would steady a bit.
Subprime lender to file for bankruptcy
First NLC Financial Services cites few buyers for its subprime loans.
NEW YORK (AP) -- Friedman Billings Ramsey Group's mortgage lending arm, First NLC Financial Services, will file for bankruptcy protection and plans to liquidate because demand among investors for home loans has vanished, the investment bank said Monday.
First NLC Financial Services, which FBR bought in February 2005 for $100.8 million, plans to file for Chapter 11 bankruptcy protection. FBR's plan to sell the business to Sun Capital Partners has fallen through, and the company said it does not expect to recoup its remaining $12 million investment in the unit's recapitalization for that sale.
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84Bill
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JAN 14, 04:54 PM
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NEW YORK (CNNMoney.com) -- A household name among mutual funds, Fidelity Investments' Magellan Fund, is opening to investors again after a decade, the Boston-based company announced Monday.
The fund, made famous by investing guru Peter Lynch, was closed in 1997 to prevent the fund from becoming unwieldy to manage. It reached a peak of $102 billion in assets in 2000, and has dwindled to about $45 billion.
Magellan, launched almost 45 years ago, is invested mostly in common stocks of domestic and foreign companies. In the past 12 months, the fund posted its highest return since 2003, up 19 percent versus a 5.5 percent gain for the Standard & Poor's 500 index.
Fidelity (FNF, Fortune 500) said the Baby Boom generation is now chipping away at the funds' assets, 85 percent of which are for set aside for retirement.
"Millions of Americans have relied upon the fund to help them reach financial goals such as saving for retirement, college, or buying a new home," said Walter C. Donovan, president of the equity division in Fidelity's Management & Research unit, in a statement. "We believe that the time is right to make Magellan available to a new generation of investors."
Harry W. Lange has managed Magellan Fund since October 2005.
Magellan Fund aims for capital appreciation by investing mostly in common stocks of domestic and foreign companies.
Fidelity has some $1.5 trillion in assets under management.
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Formula88
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JAN 14, 06:13 PM
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| quote | Originally posted by 84Bill:
NEW YORK (CNNMoney.com) -- A household name among mutual funds, Fidelity Investments' Magellan Fund, is opening to investors again after a decade, the Boston-based company announced Monday.
The fund, made famous by investing guru Peter Lynch, was closed in 1997 to prevent the fund from becoming unwieldy to manage. It reached a peak of $102 billion in assets in 2000, and has dwindled to about $45 billion.
Magellan, launched almost 45 years ago, is invested mostly in common stocks of domestic and foreign companies. In the past 12 months, the fund posted its highest return since 2003, up 19 percent versus a 5.5 percent gain for the Standard & Poor's 500 index.
Fidelity (FNF, Fortune 500) said the Baby Boom generation is now chipping away at the funds' assets, 85 percent of which are for set aside for retirement.
"Millions of Americans have relied upon the fund to help them reach financial goals such as saving for retirement, college, or buying a new home," said Walter C. Donovan, president of the equity division in Fidelity's Management & Research unit, in a statement. "We believe that the time is right to make Magellan available to a new generation of investors."
Harry W. Lange has managed Magellan Fund since October 2005.
Magellan Fund aims for capital appreciation by investing mostly in common stocks of domestic and foreign companies.
Fidelity has some $1.5 trillion in assets under management. |
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Is this a bad thing? Assets are going down as long time investors retire and withdraw their assets. That's to be expected regardless of the economic climate. Looks like a good idea to allow new investors to make sure the fund continues to grow - just as closing it when it was larger was the right decision at that time.
If there's a harbinger of doom in there, I'm not seeing it.
"In the past 12 months, the fund posted its highest return since 2003, up 19 percent versus a 5.5 percent gain for the Standard & Poor's 500 index"
Sounds good to me. I'll probably divert some of my investments over there. Thanks for the tip.
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84Bill
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JAN 14, 06:15 PM
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| quote | Originally posted by Formula88:
Is this a bad thing? Thanks for the tip. |
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Did I say it was a bad thing?
And your welcome.
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Formula88
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JAN 14, 06:21 PM
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| quote | Originally posted by 84Bill:
Did I say it was a bad thing?
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No, but everything you've been posting has apparently been to support your opinion that the economy is spiraling in like a lawn dart. That's why I asked.
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