Sorry, the Fundamentals of the Economy Are Sound. That's Right!

Brain Dead Headlines get Attention, but ....

When there is no logic behind a headline it just reflects the commentators nonsense to appreciate the fact that we are in the financial collapse. Partially because our financial press has not been paying attention to the squandering of America by the Republican party. Somewhat economically illiterate that they are, can not figure out the simplest of issues.

Breaking News - The US Economy is collapsing, this house of cards Bush built is finished.

Sorry you maybe made a typo - Maybe you meant The Fundamentalists are Strong, sorry, I don't think that works anymore either.

Paul of WA @ Oct 11, 2008 21:02:57 PM

fundamentals

yup... this is like saying a car that all 4 wheels have come off - is still fundamentally a car - and will be just fine just as soon as we get those dang wheels back on it.

George Bush Econ 101

LarryG of VA @ Oct 09, 2008 22:57:37 PM

You just can't keep spending

Of course the fundamentals of our economy are sound. We continue to attract the brains of the world. Our ability to innovate rises up from the pouring in of new brains from the four corners of the earth. Yes, innovation and creativity will and does drive markets. That said you cannot live on borrowed money forever. Simply creating more paper to put into the hands of people who should not yet have access to it is idiotic. Creating valuations based on future potential earnings is the cornerstone of unrealistic and extremely risky innovation. There is no way to spend your way out of a cyclical cycle that has existed since man first began to understand specialization. Put as simply as possible nothing grows forever!

No one in America since WWII has liked to hear the word no. Granted we work hard for our stuff but when the wealthiest country on earth has the biggest deficits, negative savings and whopping balance of trade you are gonna have problems. There is no reason except greed for this current banking crisis.

Banks have been out of control since oversight and regulations which started, en masse, under Kennedy and Nixon were enacted. The entire financial system of the world has been acting in the same irresponsible manner as their respective governments. The saddest part of this whole crisis is that we are facing a serious environmental threat that will exponentially grow bigger unless sustainable solutions are ushered in by supposed super powers like ourselves, China, India and Australia. Today, now because if people think that a small financial crisis like the trillions lost due to the credit crunch is bad, Think what will happen when the entire infrastructure of over populated areas like cities and European villages get rocked by inevitable floods, typhoons, tsunamis, hurricanes, tornadoes and earthquakes increase ten fold.

The truth is that over consumption is as destructive as tyranny. Over development is not the work of free will or free markets but gluttony and greed. The opportunity cost of profit at any price is disaster. I think the current markets show this better than anything; unless we act responsibly now and realistically learn to say no - especially in America we will continue to become a satellite of China and the Middle East. Right now we are for sale and not at top value but at bargain basement prices.

Victor Seroussi of NY @ Oct 09, 2008 08:40:22 AM

Nothing is new in history

I think something is missing in this article, and that is the understanding of the mechanism and psychology of market economy. It’s nothing unusual with the present problems; it happened before and will happen in future, as far as market economy exists, and it’ll exist. Get ready for just another step, 'poor becomes poorer and rich become richer’ just as usual!

J.J @ Oct 09, 2008 08:01:03 AM

Is the world being subverted? using this downturn

in the United States it seems to me that the politicians want to head in a direction in which the public do not want to follow and that these politicians are not listening to the very people who elect them, so how is this going to lead to any sort of stability?

It seems you have secrecy in every branch of government, there does not appear to be any transparency, everything is hidden, there are too many lobbyists, and the government are pandering to multinational business and it seems they are taking money from these businesses for favours.

The government is elected by the people to represent them and that is not happening because there are powerful entities at work who seem to hijacking the Country. There will be no trust until this is dealt with. The people that have caused this downturn have to be dealt with and it must be done soon.

Stop this stupid secrecy, let you people have transparency, repeal the stupid patriot act and all the other acts that reduce your people's freedom and confidence will return and America will be great again.

We have exactly the same problem in Europe, particulary in the United Kingdom, so by this evidence alone we can see there is some conserted effort by powerful people to subvert our democracy into some sort of global government which we don't want and are not ready for and the main reason is we do not trust our governments as their actions are secretive and are stealing our freedoms.

It is my belief and that this disaster is deliberate to cause chaos in the world and effect a global change to centralise the banking system giving bad people total control over every aspect of our lives, if this is not true then repeal the patriot act and the other acts that restrict freedom and lets see your fruits of goodness and humanity, I will not hold my breath while waiting.

John Ball @ Oct 09, 2008 04:21:50 AM

Love Obama's Taxes

When Obama taxes the rich redistributes wealth, Reed and Pelosi cover their parties mistakes and initiate their socialist agenda, America as we know it will be over!

Its time to stand up and be counted for America, not allow the same people who said the war was lost, our soldiers are killing civilians, or cover the lies of their co patriots to remain in power.

The fundamentals of the American people is their heart and soul and love of freedom! NOT the Socialist agenda of Acorn, Fev Wright, or SDS Bill Ayres or George Soros and moveon.org

Freedom will be redifinded by the Democratic Party when they hold the Government with no checks and balances of another party!

SimonSez of CA @ Oct 08, 2008 23:24:50 PM

Rising unemployment & productivity

What happens to productivity as unemployment rises? So over the last year our GDP has been slowing creeping down and unemployment has risen steadily. There has to be a relationship between GDP and unemployment. As such, I'm not surprised that "productivity" has slowly increased, because I would say that the reduction in GDP is not as great as the increase in unemployment.

Ultimately, most people feel like the economy is in a recession. However, we've had this classical definition of a recession as two consecutive quarters of negative growth for many years now. I for one do not think productivity should be a primary metric in these times when determining whether or not our economy is good. Many big, medium, and small banks will fail and millions of homes will enter foreclosure before its all said and done. So from my perspective, our economy is doing very poorly and it will only get worse.

Remember, there are approaching 2 trillion $$$ of adjustable mortgages waiting to adjust between now and the end 2010. That's two more years, folks! And now, the credit crisis is really starting to go global. The Fed and central banks around the world cut their prime lending rates in an unprecedented move that was coordinated. Iceland teeters on the edge on bankruptcy. When Tom Brokow asked the candidates last night how they would ask Americans to sacrifice in the future, they both should have said: America needs to start living within its means. We need to start driving small cars and living in smaller and more energy efficient homes.

I can't stand either of these candidates. Obama taught law at the University of Chicago, rising to a Sr. Lecturer but never published a single paper. McCain isn't any better. He frames almost everything in terms of his military service and fighting this and that. And then we have Sarah Palin. Can I ask a question. Other than being recognized as an intellectual and having solid oratory skills, is Obama really any more qualified to be president than Sarah Palin. I mean, really! He's three years into his first term as a senator and spent six years before that as an Illinois State Senator. I mean, come on, is that greater qualifications that a smart, well spoken woman who has executive experience, al beit small town mayor and Governor of Alaska? Where does Matt Daemon get off lampooning Palin over her lack of experience, when it's Obama who's actually running for president day one, not on a 1 in 4 chance McCain won't make it through his first term. Rather, Mr. Daemon can't stand the fact that Palin is a creationist.

I will give Obama credit for recognizing that America needs to eliminate its dependency on foreign sources of oil in 10 years time. Whether or not he's successful in getting us 80% there in the next eight years remains to be seen.

Jay of GA @ Oct 08, 2008 21:52:48 PM

The Economy is an Indiviual Thing...

Even if the main economic indicators are sound, the average family is still struggling. We need new leadership to restore confidence to the public. If we go in the right direction people will feel better.

The war must be ended. The 10 billion dollars a mouth could be saved and reinvested in the economy. GM must come out with the electric car fast. What are the factors that make America strong?

We need our universities need to go to work on our economy.

America needs a powerful tool to keep us ahead in new technology. Jobs are so important. We have lost so many good jobs the last 8 years. The future must get better. America will be greater after we get new leadership.

Dr.James A. Lee of IL @ Oct 08, 2008 21:08:15 PM