and prolong the agony right? We were in recession when 911, happened. Then Greeny made money free to borrow and ppl. went hog wild and spent like they won the freakin' lottery. Now their equity is gone so if their virtual ATM they have been using to buy their overpriced SUV's. So what's the new pancea? How about admitting we have a real problem, debt, overspending and starting dealing with it?:eek: Wait that would make too much sense!
so you are saying that "units sold" is lower (should be in recession), but they beat earnings by higher prices? like dell for example? what can be more "anti-inflation" than technology? and btw, last CPI was flat.
Thanks Piezoe, but what I am saying is just common sense that has been around for ages. Alot of my thinking comes from smart individuals like Lou Dobbs on CNN. Even when I made alot of in telecom sales during the dotcom, something just didn't smell right? If you look at the countries that do really well now they are creditor nations and have surpluses ( I don't have exact facts to back that up sorry ). That's what the US did in the 50's I believe. We actually made stuff, sold it to ppl, and saved money. Wow a new idea! All this new economy is most BS, plain and simple. All debt is not bad, but the kind the US and especially it's ppl have been taking on, is questionable at best. That's just my 2 cents worth.
No, I was just responding with my frustration about the state of things in the US since 911. I am disguisted with both Democrats and Republicans, they both work for the corporations and pander a little to the ppl that actually vote them in IMO.
It's gut wrenching when you initially figure out that your entire life is being staged by The United States Corporation.
You know Matt, being totally objective, the US became that way because we have had things so good for so long and become apathetic to a large degree, really. The masses are not quite upset enough, IMO unfortunately, to ask for real change. Time will tell though. The will of the people just needs to be stronger than the will of the special interest groups that all. Simple, but not easy, like trading and many other things, right? Don't get me wrong though, the US is still one of the best countries in the world to live in. In many Middle East countries public talk like this could get you in to real trouble.
Just imagine if the BLS hadn't adjusted in an additional 122,000 jobs into those numbers. They adjusted in 15,000 additional construction jobs and 4,000 additional manufacturing jobs. Go figure. As for growth, its a calculation based on how much they deduct for inflation. I'm sorry, but unless you are buying computers or autos, inflation is nowhere near 2%. I've read numbers like 10 or 12%, but I think that is too high. I'd bet its at least 6 or 7% on average, though. Wage inflation is a totally different animal. Costs go up 6 or 7%, but wages go up 2 or 3%, if at all. If it really is 6 or 7%, then the 3% growth reported is really -3% or -4%, and your money in the bank is really earning a -2%. That's good reason to be investing some of it in hard assets they can't inflate to worthlessness.
Higher inflation will actually pump cheap earnings up for that bull run to 50000 on the DOW. Yet, when we go to McDonalds it will cost a duffel bag full of cash (USd) to get a #3 Combo.