Yes, this is a new cycle now. When the rich people get a few more dollars, the companies will add some workers in CHINA Recovery will not be like the 80's. The jobs will not be created here, and this country will lose it's importance, imo.
Vaid points but each one has a ton of reasons.....the fed clearly f-ed up, no doubt....but remember the internet bubble burst combined with 9-11????? staggflation of jimmy carter when int. rates were 18-20 % and 10% of the country was out of work?
We have 12% unemployment now, if you use the method of calculating it that was in place in the 80's. Same thing with inflation, it's about 10% if you use the old calculations.
Again.....I heard the same thing in late 70's and early 80's....Japan was where all the jobs were going...Hisotry has a way of repeating itself over and over again doesn;t it???
Excellent Commentary All .......................................................................................... What one is witnessing now is the battle between deflation versus inflation. Bernanke's way of thinking is that the previous Great Depression occurred because actions such as he is taking.....did not occur, thus he is applying the proper medicine.....when in reality, is only making the depression even more harmful...... No savings is fine....as long as there is other money to replace it ....called debt ? Sound like maybe Greenspan ? ............................................................................................... Here is the bottom line.... A normal economy rewards the money generated by the average worker such that a retiree can retire. This would mean a short term rate of interest of at least 7%. So in order for the markets to approach normalcy ....this has to occur.... ................................................................................................. The US differs from Japan in that Japan just stuck their bad stuff under a nontalking pillow....and just hoped that in some way the future would change....and after many years they are still waiting ....and have never returned to normalcy.... .............................................................................................. Does this mean that any economy has to be normal ? No....it can remain in a state of flux forever.....going from bandaid to bandaid never getting well....when surgery is actually needed.... ...................................................................................... Any country that is willing to clean their slate ....adopt a sales tax only government.....forms objectives for themselves.....make sure that the best people are hired that want to work.....form and maintain an electronic stock exchange for their companies that have access to non interest nonobligaory debt.....and a normal localized type banking community......will win the game......and make silly advertising type elections a foolish relic of the past....thus regionalizing the country and run by its population via the internet......educated via the internet as well.... End of story.....
If memory serves, Americans were buying Japanese products in the 80's (Cars). There has never been a time when jobs and American factories were shipped abroad wholesale.
it wasn;t just cars...every thing came from japan..electronics, machines, computers, rubber dog shit....we were fat and lazy americans...we don;t save...we don;t create...yadee yadee yah! LOL There was a strong anti japan sentiment as well and may were saying this was how they were going to avenge WWII one thing to remember: every country has its day for cheap labor. japan, hong kong, korea and now china.....just remember...India is laying in wait to do to china what they did to Japan and take over the cheap jobs....then what does china do?
The Internet "bubble" was only one sector of the Economy and occurred while the Federal Govt. was still working with a budget surplus. It's a whole different ballgame now with fuel at $140 per barrel and Fannie Mae literally being "insolvent" during a time of huge federal budget deficits. Remember, Fannie Mae was behind 70% of all mortgage origination out there, and that comes to $5 TRILLION DOLLARS . . . roughly twice the Federal Debt! The dollar will only come back for a sustained period of time if our Government finally stops all of this DISCRETIONARY spending that has gone on under Congess and the Bush Administration for the past 7 years. Even if the Bush tax cuts were extended, the OMB is estimating a 2013 deficit of $443 Billion. For me, one has to wonder why we even have a government to begin with, given all of the FAILURES that we are seeing across the board with regards to public policy. Just think . . . FNM might have to get bailed out by the government. Imagine that? The Govt. bailing the govt. out. Now how's that for credibility???