US Economy is not Europe - my rant

Discussion in 'Economics' started by 1011011, Jun 10, 2012.

  1. 1011011


    i'm no economist and i don't play one on tv but what i see in the US economy and the stock market, is sympathetic to Europe's sovereign countries, financial crisis. Europe is now experiencing their financial crisis, similar to what the US economy experienced in 2008. they just took a little bit longer to unravel their financial shenanigans.

    the way i see the reason the US stock market's recent decline is, Eurorpe's issues gives all the short sellers and the gloom and doom prognosticators a reason to short sell US stocks.

    but why? the US is not Europe. just think about US companies and the financial banks. having gone through the 2008 crisis, banks are much more capitalized and the CEOs are more cognizant of managing their company's balance sheet. interest rates are at a all time low, gas prices are stable, and the job market is improving. yes, the job market can definitely improve but the US is NOT Europe, not even close.

    Europe's temporary downturn means, US companies won't sell maybe 20 billion dollars worth of goods to Spain, maybe 5 billion to Greece, and 20 billion to Italy. big deal. we can maybe make up the loss to selling to emerging markets and maybe more to Asian nations. So instead of revenues of 5 billion, maybe companies earn 2 that a reason to short a company? it's better to make 2 billion rather than being in the red.

    these cnbc guest analysts think that every year, companies have to blow out their previous year's earnings to be considered worth investing. how about slow incremental increases each year in revenues or better yet, the metric of paying off their companies debt. to me, seeing that a company can be around for the next 50 years is more important than the short term gain.

    the US stock market will roar once people realize this.
  2. 1011011


    some what agree with you about the US debt issue but the world is not going to end because of this. case in point, some people have school loans for 30 - 40 years and finally pay it off but you know what, their school debt didn't prevent them from having a life.

    if the US decreased the US corporate tax rate to maybe, 15%, even for just two years, more jobs would be created, more people would have money to spend and the government could slowly pay off the US debt.

  3. 1011011


    if you grow the economy, and the stock market roars, the government will be able to generate surpluses in their budget.

  4. Oh... Oh...
  5. achilles28


    To the OP - you don't understand the situation.
  6. zdreg



    third world thinking is starting to pervade. argentina here we come. juan peron must be smiling in his grave.

    when are u joining the obama economic team?
  7. Only a fool would be confident about America's future... especially so long as Odumbo is at the helm.

    :mad: :mad:
  8. zdreg


    odumbo is not dumb.

    it is the american people. gg barnum once said never underestimate the stupidity of the american public. let's see if the presidential election disproves or not his remark.
  9. I think that aside of the multis feeling the pinch every time the dollar strengthens, Europeans buying less US exports the main connection is that Greece/California Ireland etc.., are MIRRORS to the US politicos and econ. pundits on the Street. They are looking at the EU 's DEBT woes as a SOBERING forecast whats coming to the US EVENTUALLY. Smart fellows, like Rodgers know this and saw this coming 10 years ago and moved to Asia. Unfortunately not all of us privy just to pack up and move to Singapore.
    Germans regret this whole experiment already....
  10. bonds


    In case you havent noticed the US stock market has way outperformed European and other major stock markets recently and is still hovering not too far off highs despite recent deteriorating domestic data
    #10     Jun 11, 2012