Comments on: Media Still Insists We Are In A Recession

By: BillK

BillK — Wed, 15 Oct 2008 01:27:04 +0000

Note the phrase the MSM is using more and more lately – “it certainly feels like a recession.”

They use it in news stories, happy banter between anchors and in print pieces when talking to “people on the street.”

It’s the usual “OK, the technical term doesn’t apply, so we’ll just make sure people believe it’s true.”

Stop for a moment and ponder – a phrase I’ve heard several times is people saying they were going to buy something and have the money, but they don’t know if they should because others are hurting.

Given consumer spending is the majority of our economy, you see how the media can now create recessions at will.

By: Lipstick on a PIAPS

Lipstick on a PIAPS — Tue, 14 Oct 2008 23:40:11 +0000

There is an old adage in Wall Street that the stock market prices in what they think will happen 6 months ahead! So if the market fell to 7900 the lowest since 2003 during the launch of the Iraq war are they pricing in an Obama victory?!? 6 months from now would be April 2009, Taxtime for the US. Things that make you go hmmm………………. LMAO.

By: Odie44

Odie44 — Tue, 14 Oct 2008 22:59:56 +0000

Economists dont have a clue, because if they did – we would proactively anticipate these things and act accordingly. I think the ignorance of the SEC and NASD is far worse – it is their job to regulate and oversee the markets – yet stand around looking foolish as the trillions of dollars get “lost” , each 10 year scandal (S&L, dot.com, etc) – then in a verbose moment – attempt to reassure people with the same empty oversight AFTER the fact.

Ironically – for every “sell” there is a “buy” and vice versa. Money just doesnt magically disappear – but when you allow people to naked sell short – its a phantom transaction that should never be allowed in the first place.

By: 1sttofight

1sttofight — Tue, 14 Oct 2008 22:36:45 +0000

Have yall ever noticed how many times economist have been mistaken in their forcasts?

By: Odie44

Odie44 — Tue, 14 Oct 2008 22:21:55 +0000

When in doubt – leave it up to financial “experts” to do a few things: 1) pile up excuses, that were evident before the meltdown. France and Germany have been in a recession for 8 straight quarters, 2) consideirng the actual defaulted subprimes is eclipsed 10 fold by piggy backing “investment vehicles” – they knew damn well the result. For every $1 in subprime losses, secondary and tertiary instruments equal $10 of losses. 3) markets don’t go up infinately, in fact the must go down and level off. 4) greed is not good Mr Gecko.

By: Odie44

Odie44 — Tue, 14 Oct 2008 20:50:40 +0000

From the same Fed Chief who oversaw the blatant fraud and meltdown of our markets.

I don’t have the energy to even explain what a true reccession is…

By: EvaTheFrisbeeDog

EvaTheFrisbeeDog — Tue, 14 Oct 2008 15:51:15 +0000

Volcker is an Obama supporter, of course he going to say that.

What we just experienced is a financial crisis brought on by TOO MUCH REGULATION (Are you listening John McCain?). The fundamentals of the underlying economy are sound.

The Fed’s infusion of liquidity, the change in mark-to-market accounting rules, and the suspension of IRS rules that tax US multinationals when they use their own money held off-shore in lieu of short term commercial paper will undoubedly help.

Now follow this closely:

Roughly 4% of the $10.5 trillion mortgage market is in default, which includes 25% of sub prime that is in foreclosure. If a foreclosed mortgage can be liquidated for 50 cents on the dollar by selling the underlying real estate, and only 4% of mortgages are in default, then mortgage backed securities (MBS) should be priced close to 95% to 97% of their face value. Of course specific tranches may be valued lower, but across the entire mortgage market, 95% to 97% are currently performing. Yet, Merrill Lynch sold their MBS portfolio at 22 cents on the dollar. Complete idiots! Now they’re part of BofA.

In my humble opinion, the market is not reacting rationally. It may be that many traders just don’t understand these complex instruments, and it doesn’t help that Wall Street is in New York, a market that has underperformed pretty much the rest of the country with the exception of most of California and parts of Nevada, Arizona, Florida, and Ohio. The atmosphere in Manhattan is toxic and contagious, and this bleeds into the markets.

Once the market figures this out, and they may have already, it’s gonna come back.

By: EvaTheFrisbeeDog

EvaTheFrisbeeDog — Tue, 14 Oct 2008 15:49:05 +0000

By: 1sttofight

1sttofight — Tue, 14 Oct 2008 14:23:43 +0000

The truth is, the tree killing paper news media is in a depression. Bleeding subscribers at an alarming rate along with ad revenues, laying off employees by the thousands.