The Economy

[z31maniac]

I'm no tree hugging hippie, but ANWR would replace less than 5% of America's daily usage, and if drilling was started tomorrow, that oil wouldn't reach the market for 8-10 years.

ANWR is NOT the answer.

[mrsleeve]

^^^^^^^^^^^^^

Its been great for the chosen few corps invloved.

[monoblanco]

Factor this in.
The cost of the Iraq war could surpass 1 trillion.

Here ya go DCColegrove, at least for this one we know who deserves the ass kickin.

Though I have heard that war is supposed to be good for the economy, somehow I doubt this one in particular has been helping us out much.

Any of our resident economists wants to speculate on why.

[trashcop 80s 80s]

We should just bomb the rest of the world, so we don't have to share any oil.

[pbr87]

Yes, Im an econ major, and no, Im not typing out of my books.

And for the record, I want to drill ANWR too, just a personal opinion.

I'm an econ major too. Good to see another one of us on here.

So: what do you think is causing the problem: falling dollar & dollar pegged to oil, government crowding out, housing crisis, or all of the above?

[Money$hit]

I agree I get the feeling that he is typing out his text books..........

Yes, Im an econ major, and no, Im not typing out of my books.

And for the record, I want to drill ANWR too, just a personal opinion.

[pbr87]

Okay...

This is kicking my ass...

I have 4 kids ages 10 years to 3 months (2 in diapers).

I have watched the price of everything I need to do business double and then triple over the past six or eight months. Same thing with all the things necessary to life, and It now costs $50 to fill the tank of my daily driver.

:hitler: So Who's ass do we need to kick to straiten this shit out?

George Bush's ass is first.





just sayin'

[andyman2487]

Cigarettes aren't cheap....

[z31maniac]

Hmmm, I don't even know how much 91 octane I wasted today driving around aimlessly.

Wall Street is a bunch of shit, we had the tech bubble, the housing bubble and now the energy bubble.

It's all been said in the thread already. Some of us will just have to tighten up our belts for awhile.

[xLibelle]

heh, USA's time is up, i'm splittin'

[mrsleeve]

Not the whole story by far, but here it is in a nutshell.

Big Business guys fuckup...

Big Government guys bail out Big Business guys...

Big Government prints more money to cover bail out devaluing the currency (there by reducing the hard cash cost of the past fuckup)...

Big business walks away pretty much clean...(looks like the Yen and Euro are doing well lets move it all there).

Joe Blow foots the bill...

By the way...Who's are these?

^^^^^^^^^^^^^^^^^
Those would be the little womans 34F's and real.

You have it nailed with your nut shell.

[uofom3]

I dont think oil is the only problem though... this housing crisis is really bad. To most Americans most of their wealth is their homes...I know I know most people here tend to thing all the eurooooooh parts represent wealth..but in reality its their homes... Because of some greedy mortgage brokers... we are in deep shit.... banks are failing and a lot of people are losing their jobs.

I dont blame just the investment banks with the CDO and MBS traders.. I blame the fuckers who were pushing such ridiculous loans threw the system

yup

[uofom3]

We are currently in a situation of stagflation, that is, we are experiencing simultaneous inflation and recession.

To squelch the recession, the Fed tries to increase GDP by pumping money into the economy, (I.E. stimulus plan money, rate cuts, etc). Since GDP = Consumer expenditures + Investment + Government expenditures + net exports, any way the government can increase any one of these components, they will try. They have clearly taken a dead aim at consumer expenditures with the stimulus plan, considering this component makes up approx. 70% of GDP.

However, with actions such as these, the Fed prints more money. By printing more money, you cause inflation to increase. As defined by the quantity theory of money, changes in inflation rate are directly correlated to changes in money supply. Print more money, have more inflation. Print less money, inflation decreases.

In a situation of stagflation, a govt must weigh its options. Solve the issue of recession and make inflation worse, or solve inflation and make the recession worse. Its a difficult trade off, but by using the AD/AS model, it is easy to see why goods are becoming more expensive and the dollar is taking a major shit versus other currencies. The Fed has printed so much money that inflation has increased, while I feel that recession fears are subsiding.

bingo.

[DCColegrove]

Not the whole story by far, but here it is in a nutshell.

Big Business guys fuckup...

Big Government guys bail out Big Business guys...

Big Government prints more money to cover bail out devaluing the currency (there by reducing the hard cash cost of the past fuckup)...

Big business walks away pretty much clean...(looks like the Yen and Euro are doing well lets move it all there).

Joe Blow foots the bill...

By the way...Who's are these?

[mrsleeve]

no dude.. the (financial savy) middle class IMO is in the best situation here.

They are the ones who are home owners... who have decent jobs and save money. I would suggest taking the monthly savings they put in the back and start buying the shit out of stocks!!!!

You dont get we are the one no matter how savy we may be we are the ones who are paying the piper. Increased Fuel, Food, clothing, health care, and energy to heat an cool our homes those are just the bare essentials of our lives all sky rocking. I dont know about you but I sure as hell have not gotten a raise in my net pay to make up for the increases. Its getting harder an harder to get the end to come togeather at the end of the month for lots of middle class people that stayed with in the confines of their income. Less and less will be saved or put into retirement,