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Odd because when Bush cut taxes in 2003, it increased employment IMMEDIATELY (over 10M new jobs over 4 years).. and grew the economy, with 52 months of consecutive growth..
1% prime lending rate blew a really big housing bubble. Not sustainable economic growth. http://www.frbsf.org/education/activ.../2005/0506.gif We are maxed out on debt. More is making the economy get smaller not bigger. We need to either forgive a bunch of debt or inflate it away. There will be no strong economic growth until this happens.
The stock market is going up because conditions for the companies listed on the stock market are improving. What causes those conditions is a moot point. I also hear from many people, especially many of my aquaintances that are business owners, that business is getting better. Every single one has told me recently that business is good or at least improving. A few of them are so busy that they've had to hire people. This is a good thing. Positive, improving, getting better....get it?
The money being lent out at 0% interest rate and also the effects QE have to go somewhere. We are just having another bubble. It will pop and probably sooner rather than later.
The money being lent out at 0% interest rate and also the effects QE have to go somewhere. We are just having another bubble. It will pop and probably sooner rather than later.
What you don't understand the money isn't going here in the United States. Real Estate is not being brought enough to so that demand is raising prices, factories are not being built and new businesses aren’t being launched to the point where employment is being increased to a significant degree.
Where is the money going?
To invest in factories and businesses in China, Viet Nam, Brazil, India, Singapore, Malaysia, Indonesia and other places around the world. Also if you are major financial institution it's perfectly logical to take loans from the FED and trade the money in the commodity, currency, equity, and bond markets and generate profits rather than invest in a country where consumers spending is weak, the population is aging, the cost of labor is high, and prospects of future growth is not near as good as in emerging market countries.
What you don't understand the money isn't going here in the United States. Real Estate is not being brought enough to so that demand is raising prices, factories are not being built and new businesses aren’t being launched to the point where employment is being increased to a significant degree.
Where is the money going?
To invest in factories and businesses in China, Viet Nam, Brazil, India, Singapore, Malaysia, Indonesia and other places around the world. Also if you are major financial institution it's perfectly logical to take loans from the FED and trade the money in the commodity, currency, equity, and bond markets and generate profits rather than invest in a country where consumers spending is weak, the population is aging, the cost of labor is high, and prospects of future growth is not near as good as in emerging market countries.
I understand this quite well. Some money a small amount is leaking into the main street economy most is staying in wall street. We need money dumped into main street. The consumers are tapped out on credit if you want to stimulate consumer demand then loan them money at a strong negative interest rate. Give them money to spend. Also give them a raise.
The money being lent out at 0% interest rate and also the effects QE have to go somewhere. We are just having another bubble. It will pop and probably sooner rather than later.
Don't worry most of the money isn't going here it's going to places life China, Brazil, India, Singapore, Malysia, Indonesia and other emerging market nations. Instead of building another bubble here the money is being invested into other countries to build their economies and expand their middle class.
It's also being invested in world finanicial markets. However it will be while before there is another bubble. We are still recovering from this one. An asset bubble is much more likely to occur in China than it is here. However the government has much more control over the economy than the American government does in the United States.
I understand this quite well. Some money a small amount is leaking into the main street economy most is staying in wall street. We need money dumped into main street. The consumers are tapped out on credit if you want to stimulate consumer demand then loan them money at a strong negative interest rate. Give them money to spend. Also give them a raise.
That is not the mandate of government in a free market capitalist society. Private industry controls wage growth, investment, and the credit market in terms of who get allocated capital and where it gets allocated.
Why should the financial institutions invest in America when they can get a greater rate of return in emerging market countries and the financial markets?
The United States has been on the winning side of capitalism for about 230 years. Nothing last forever. Every economic system has its pluses and minuses. There is no compelling reason to invest in a company, business sector, city, region or country capital will flow elsewhere. That’s exactly what is happening now.
The United States is bankrupt or will be and the economy is not recovering. Debt saturation is killing the whole planet.
Actually not every country has near the problems that the United States does. Countries like Canada, Australia, South Korea, Switzerland and others are much more fiscally prudent than the United States. In fact their economies have continued to do well despite the current economic malaise in the United States.
Canada is pretty heavily in debt too so I'm not so quick to pat them on the back for fiscal prudence.
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