Bad news for the gop

Discussion in 'Current Events' started by Surfer Joe, May 28, 2013.

  1. Surfer Joe

    Surfer Joe Well-Known Member Past Donor

    Joined:
    Sep 13, 2008
    Messages:
    24,287
    Likes Received:
    15,352
    Trophy Points:
    113
    The economic picture doesn't bode well for the repubs' electoral chances in 2014 and 2016.
    These facts are vastly more important to the voters than their stunts over the debt ceiling, the Benghazi incident or the IRS.
    Coupled with the tendency of the cons to keep insulting the voters by accusing them of being idiots and moochers for voting democratic, the chances are good that the dems may take back the House and keep the Senate in 2014, and if the economy continues to recover, 2016 is also going to continue their winning streak.
    I think that their best chance to be taken seriously by voters is for the gop to start acting like a loyal opposition and work together rather than continue to act like intransigent obstructionists.

    http://online.wsj.com/article/SB10001424127887324809804578510931769289110.html

    http://www.bloomberg.com/news/2013-...u-s-rises-to-highest-since-february-2008.html
     
  2. SourD

    SourD New Member Past Donor

    Joined:
    Mar 27, 2012
    Messages:
    6,077
    Likes Received:
    37
    Trophy Points:
    0
    Next month will be a reverse article to post.
     
  3. Pred

    Pred Well-Known Member

    Joined:
    Oct 18, 2011
    Messages:
    24,355
    Likes Received:
    17,346
    Trophy Points:
    113
    Not that Obama had any control over the housing market, but doesn't this just further prove the dumbifying of the voting populace if they don't care that their govt leaders are LYING to their faces? The housing market was going to fix itself eventually, not that its fixed just yet. My house still isn't worth what it was when I bought it 5 yrs ago.
     
  4. Marine1

    Marine1 Well-Known Member Past Donor

    Joined:
    Aug 17, 2011
    Messages:
    31,883
    Likes Received:
    3,624
    Trophy Points:
    113
    Gender:
    Male
    What is also helping is that quite a few companies have decided that China's low wages don't make up for the extra cost of shipping, brought on by higher oil prices and shipping containers. That has brought back a few thousand jobs. Hopefully that will continue, no matter who gets credit for it.

    Not sure what Obama care will have to the economy. We may have to wait till it takes full effect to better judge that.
     
  5. MisterMet

    MisterMet New Member Past Donor

    Joined:
    Mar 8, 2013
    Messages:
    1,130
    Likes Received:
    7
    Trophy Points:
    0
    So the Democrat campaign platform in 2014 is going to be...After 6 years of control, we are starting to recover? Don't worry about the lower incomes and high unemployment, those little things will come back eventually. What's important is that we are STARTING to recover.
     
  6. SourD

    SourD New Member Past Donor

    Joined:
    Mar 27, 2012
    Messages:
    6,077
    Likes Received:
    37
    Trophy Points:
    0
    Mine neither. Go figure.....
     
  7. Durandal

    Durandal Well-Known Member Donor

    Joined:
    May 25, 2012
    Messages:
    55,518
    Likes Received:
    27,044
    Trophy Points:
    113
    Gender:
    Male
    Here's what the OhBummer-Bernanke team have managed:

    http://www.moneynews.com/MKTNews/billionaires-dump-economist-stock/2012/08/29/id/450265

    Billionaires Dumping Stocks, Economist Knows Why

    Monday, 27 May 2013 03:40 PM

    Despite the 6.5% stock market rally over the last three months, a handful of billionaires are quietly dumping their American stocks . . . and fast.

    Warren Buffett, who has been a cheerleader for U.S. stocks for quite some time, is dumping shares at an alarming rate. He recently complained of “disappointing performance” in dyed-in-the-wool American companies like Johnson & Johnson, Procter & Gamble, and Kraft Foods.

    In the latest filing for Buffett’s holding company Berkshire Hathaway, Buffett has been drastically reducing his exposure to stocks that depend on consumer purchasing habits. Berkshire sold roughly 19 million shares of Johnson & Johnson, and reduced his overall stake in “consumer product stocks” by 21%. Berkshire Hathaway also sold its entire stake in California-based computer parts supplier Intel.

    With 70% of the U.S. economy dependent on consumer spending, Buffett’s apparent lack of faith in these companies’ future prospects is worrisome.

    Unfortunately Buffett isn’t alone.

    Fellow billionaire John Paulson, who made a fortune betting on the subprime mortgage meltdown, is clearing out of U.S. stocks too. During the second quarter of the year, Paulson’s hedge fund, Paulson & Co., dumped 14 million shares of JPMorgan Chase. The fund also dumped its entire position in discount retailer Family Dollar and consumer-goods maker Sara Lee.

    Finally, billionaire George Soros recently sold nearly all of his bank stocks, including shares of JPMorgan Chase, Citigroup, and Goldman Sachs. Between the three banks, Soros sold more than a million shares.

    So why are these billionaires dumping their shares of U.S. companies?

    After all, the stock market is still in the midst of its historic rally. Real estate prices have finally leveled off, and for the first time in five years are actually rising in many locations. And the unemployment rate seems to have stabilized.

    It’s very likely that these professional investors are aware of specific research that points toward a massive market correction, as much as 90%.

    One such person publishing this research is Robert Wiedemer, an esteemed economist and author of the New York Times best-selling book Aftershock.

    Editor’s Note: .

    Before you dismiss the possibility of a 90% drop in the stock market as unrealistic, consider Wiedemer’s credentials.

    In 2006, Wiedemer and a team of economists accurately predicted the collapse of the U.S. housing market, equity markets, and consumer spending that almost sank the United States. They published their research in the book America’s Bubble Economy.

    The book quickly grabbed headlines for its accuracy in predicting what many thought would never happen, and quickly established Wiedemer as a trusted voice.

    A columnist at Dow Jones said the book was “one of those rare finds that not only predicted the subprime credit meltdown well in advance, it offered Main Street investors a winning strategy that helped avoid the forty percent losses that followed . . .”

    The chief investment strategist at Standard & Poor’s said that Wiedemer’s track record “demands our attention.”

    And finally, the former CFO of Goldman Sachs said Wiedemer’s “prescience in (his) first book lends credence to the new warnings. This book deserves our attention.”

    In the interview for his latest blockbuster Aftershock, Wiedemer says the 90% drop in the stock market is “a worst-case scenario,” and the host quickly challenged this claim.

    Wiedemer calmly laid out a clear explanation of why a large drop of some sort is a virtual certainty.

    It starts with the reckless strategy of the Federal Reserve to print a massive amount of money out of thin air in an attempt to stimulate the economy.

    “These funds haven’t made it into the markets and the economy yet. But it is a mathematical certainty that once the dam breaks, and this money passes through the reserves and hits the markets, inflation will surge,” said Wiedemer.

    “Once you hit 10% inflation, 10-year Treasury bonds lose about half their value. And by 20%, any value is all but gone. Interest rates will increase dramatically at this point, and that will cause real estate values to collapse. And the stock market will collapse as a consequence of these other problems.”

    See the Proof: .

    And this is where Wiedemer explains why Buffett, Paulson, and Soros could be dumping U.S. stocks:

    “Companies will be spending more money on borrowing costs than business expansion costs. That means lower profit margins, lower dividends, and less hiring. Plus, more layoffs.”

    No investors, let alone billionaires, will want to own stocks with falling profit margins and shrinking dividends. So if that’s why Buffett, Paulson, and Soros are dumping stocks, they have decided to cash out early and leave Main Street investors holding the bag.

    But Main Street investors don’t have to see their investment and retirement accounts decimated for the second time in five years.

    Wiedemer’s video interview also contains a comprehensive blueprint for economic survival that’s really commanding global attention.

    Now viewed over 40 million times, it was initially screened for a relatively small, private audience. But the overwhelming amount of feedback from viewers who felt the interview should be widely publicized came with consequences, as various online networks repeatedly shut it down and affiliates refused to house the content.

    “People were sitting up and taking notice, and they begged us to make the interview public so they could easily share it,” said Newsmax Financial Publisher Aaron DeHoog.

    “Our real concern,” DeHoog added, “is the effect even if only half of Wiedemer’s predictions come true.

    “That’s a scary thought for sure. But we want the average American to be prepared, and that is why we will continue to push this video to as many outlets as we can. We want the word to spread.”
     
  8. Natty Bumpo

    Natty Bumpo Well-Known Member

    Joined:
    Nov 28, 2012
    Messages:
    41,211
    Likes Received:
    14,703
    Trophy Points:
    113
    .

    Things are looking rather rosy again, indeed, but the angry white guys so alienated from America will persist in their vapid bellywhinging. Just watch.

    [​IMG]

    ... and let us not forget,

     
  9. Durandal

    Durandal Well-Known Member Donor

    Joined:
    May 25, 2012
    Messages:
    55,518
    Likes Received:
    27,044
    Trophy Points:
    113
    Gender:
    Male
    And Big Brother has increased the chocolate ration again. :lol:
     
  10. Nunya D.

    Nunya D. Well-Known Member

    Joined:
    Aug 4, 2010
    Messages:
    10,193
    Likes Received:
    2,797
    Trophy Points:
    113
    In other News:

    "The sun rose in the east this morning, thanks to President Obama".
     
  11. Brewskier

    Brewskier Well-Known Member

    Joined:
    Aug 20, 2011
    Messages:
    48,910
    Likes Received:
    9,641
    Trophy Points:
    113
    Gender:
    Male
    Obama and the Fed have plenty of control over the housing market... that's the problem. They are buying up mortgage back securities every month. They are keeping interest rates low. This is driving up the price as more people enter the market to take advantage of the low rates. The increase in the housing prices will encourage more borrowing and more people will buy homes as investment properties. Pretty soon we will have the speculative bubble that caused this whole mess in the first place.

    I bought my home in Jan 2012. It's increased over 20% since then. I'll hopefully sell it at the end of the year, pocket the difference, and watch from a safe distance as the next bubble implodes. If Barack Obama's lucky, it will happen during the next Administration, and dishonest lawyer types will blame that Administration (if it's a Republican) for Obama's bubble.
     
  12. Trumanp

    Trumanp Well-Known Member Past Donor

    Joined:
    Nov 12, 2007
    Messages:
    2,011
    Likes Received:
    36
    Trophy Points:
    48
    Somewhat ironic that high energy prices are the key ingredient to bringing back manufacturing...

     
  13. MolonLabe2009

    MolonLabe2009 Banned

    Joined:
    Dec 10, 2009
    Messages:
    33,092
    Likes Received:
    15,284
    Trophy Points:
    113
    So, you are rooting for another housing bubble. Why?

    You do realize that more and more people are being demoted from full time to part time?

    Just who is going to be able to afford these outrageously priced homes?
     
  14. JoeSixpack

    JoeSixpack New Member

    Joined:
    Apr 11, 2012
    Messages:
    10,940
    Likes Received:
    72
    Trophy Points:
    0
    Quote Originally Posted by Pred View Post
    Because they were never worth that much to begin with. It was a scam. It's like buying ocean front property thousands of miles from the coast, and then hoping the ocean will arrive some day so it will actually be worth what you paid for it when you were scammed.
     
  15. Channe

    Channe Well-Known Member Past Donor

    Joined:
    May 16, 2013
    Messages:
    14,961
    Likes Received:
    4,064
    Trophy Points:
    113
    who cares about the GOP anymore ? they are a fading political party.
     
  16. Iriemon

    Iriemon Well-Known Member Past Donor

    Joined:
    May 12, 2009
    Messages:
    82,348
    Likes Received:
    2,657
    Trophy Points:
    113
    We started recovering more than three years ago.

    - - - Updated - - -

    And probably won't for years to come, as it sounds like you bought at the top of the housing bubble. But on average, values are increasing now, as opposed to decreasing.
     
  17. Iriemon

    Iriemon Well-Known Member Past Donor

    Joined:
    May 12, 2009
    Messages:
    82,348
    Likes Received:
    2,657
    Trophy Points:
    113
    Not a housing bubble, but housing prices starting to rise again. That is a good thing on many levels. It creates an equity cushion for lenders, hence less defaults, gives more people the ability to sell their houses to move to take advantage of job opportunities, and creates thousands of jobs in construction and mortgage and brokerage businesses.

    So you are rooting for housing prices to fall even more? Why? I mean, other than the fact you are invested in failure for political purposes?

    Why would he realize that? Far fewer people are working part time for economic reasons than the beginning of 2010, despite almost 7 million new private sector jobs being created.
     
  18. Natty Bumpo

    Natty Bumpo Well-Known Member

    Joined:
    Nov 28, 2012
    Messages:
    41,211
    Likes Received:
    14,703
    Trophy Points:
    113
    That was then:


    This is now:


    [​IMG]



    [​IMG]
    Well, all patriotic Americans are all heartened by the impressive recovery, anyway.​
     
  19. Iriemon

    Iriemon Well-Known Member Past Donor

    Joined:
    May 12, 2009
    Messages:
    82,348
    Likes Received:
    2,657
    Trophy Points:
    113
    We have a long way to go before we are in the bubble territory of 2006.
     
  20. Nunya D.

    Nunya D. Well-Known Member

    Joined:
    Aug 4, 2010
    Messages:
    10,193
    Likes Received:
    2,797
    Trophy Points:
    113

    LOL....you really need a life!! :omg: :-D
     
  21. MisterMet

    MisterMet New Member Past Donor

    Joined:
    Mar 8, 2013
    Messages:
    1,130
    Likes Received:
    7
    Trophy Points:
    0
    Yup, the "new normal" type of recovery right?

    The ones with anemic growth, high unemployment and lower wages?

    There is no growth. These pathetic 1 and 2 point gowth rates means we are at a stand still. America is capable of much better and under the Presidents watch we are looking a stagnation.

    These excuses about this is how a recovery looks in todays world means the person making that excuse thinks America's best days are behind her. We need less of those people in charge.
     
  22. gamewell45

    gamewell45 Well-Known Member Past Donor

    Joined:
    Apr 10, 2011
    Messages:
    24,711
    Likes Received:
    3,547
    Trophy Points:
    113
    Well we have 4 days to find out if you were right or not.
     
  23. Iriemon

    Iriemon Well-Known Member Past Donor

    Joined:
    May 12, 2009
    Messages:
    82,348
    Likes Received:
    2,657
    Trophy Points:
    113
    Yes, that has been the normal for the last three recoveries, all of which were relatively anemic and shallow. The last robust recovery we had was the early 1980s. In those days, we had a strong middle class, and we had a government with a post WWII low level of debt (proportionate to GDP), and we had a completely different government response:

    Spending increase, 1981-1984: +25%.

    Spending increase, 2009-2012: +0.6%

    Total Government employment, 1981-1984: -27,000

    Total Government employment, 2009-2012: -730,000

    What do you figure the economy would be doing if federal government spending increased 25% over the past three years instead of being flat, and the Republican dominated state governments had not laid off 730,000 workers?

    Since 1979, the 1%'s has doubled its take of the nation's income (to 20%) and wealth (to 40%).

    What do you figure the economy would be doing if the middle classes had another $1.3 trillion in income to spend instead of it sitting in the offshore bank accounts of the 1%?
     
  24. Iriemon

    Iriemon Well-Known Member Past Donor

    Joined:
    May 12, 2009
    Messages:
    82,348
    Likes Received:
    2,657
    Trophy Points:
    113
    You got a point. But I knew that when all our conservative friends where blaming Obama for every drop in the Dow or increase in the unemployment rate, as soon as things started getting better they'd be saying he had nothing to do with it. : D
     
  25. Surfer Joe

    Surfer Joe Well-Known Member Past Donor

    Joined:
    Sep 13, 2008
    Messages:
    24,287
    Likes Received:
    15,352
    Trophy Points:
    113
    Excellent post. We await all of the backward somersaults from the usual gang.
     

Share This Page