It's official: U.S. is in a recession

vbimport

#1

The U.S. economy has been in a recession for all of 2008, the National Bureau of Economic Research said Monday.

http://www.bizjournals.com/dayton/stories/2008/12/01/daily4.html


#2

I my area we have been in recession for over 4 years now. For every 5 stores the close only one opens. :sad:


#3

It’s Obama’s fault or Clinton’s or FDR’s…
Apologists take a number for better service…


#4

Yea it really is Obama’s fault since he has yet to hold anything to do with keeping this from happening, so I blame Bush and his team and that 700 billion dollars are tax payers paid was just a waste of time and money & now we are further in debt than before as it was supposed to of stopped this from happening.


#5

It is the fault of whoever conceived of, and allowed, the subprime mortgages to see the light of day. Then next in line is the idiots that thought every yahoo with any semblance of an income had a right to own a home. Find these people and you have found the ones responsible for this mess.

My job is tied to the housing industry. I have been living in a DEPRESSION for the past three years. I would be happy to deal with only a recession.

[QUOTE=Dr. Who;2167772]Yea it really is Obama’s fault since he has yet to hold anything to do with keeping this from happening, so I blame Bush and his team and that 700 billion dollars are tax payers paid was just a waste of time and money & now we are further in debt than before as it was supposed to of stopped this from happening.[/QUOTE]

You can justifiably blame Bush but don’t leave out the Democrat controlled Congress that gave it to him. There was a handful of Congressmen that opposed it but too many of them got beat into submitting to the will of the big dogs. This situation was created by both sides of the political isle. There are more fingerprints on this mess than the door handle on a bathroom door in the JFK airport. It runs from the applicants that lied on their loan documents to the mortgage brokers and bankers that told them to do it to the politicians sitting in Washington, DC that passed legislation to give them the loopholes to get mortgages the buyers weren’t qualified for.


#6

[QUOTE=UTR;2167774]It is the fault of whoever conceived of, and allowed, the subprime mortgages to see the light of day. [/QUOTE]It’s a bit more complicated than that UTR…The securitization and massive leverage was based on continued appreciation of housing…It’s starting to affect jumbo mortgages now too…[QUOTE=UTR;2167774]Then next in line is the idiots that thought every yahoo with any semblance of an income had a right to own a home. Find these people and you have found the ones responsible for this mess. [/QUOTE] A classic Ponzi Scheme that collapsed…

[QUOTE=UTR;2167774]My job is tied to the housing industry. I have been living in a DEPRESSION for the past three years. I would be happy to deal with only a recession.[/QUOTE]That explains a lot…


#7

:iagree:My area has been in a recession then depression since 2002. Over 11,000 foreclosures in just 1 month!:sad:


#8

[QUOTE=pipemanid;2167785]It’s a bit more complicated than that UTR…The securitization and massive leverage was based on continued appreciation of housing…It’s starting to affect jumbo mortgages now too… A classic Ponzi Scheme that collapsed…[/QUOTE]

I would have to write a novel to cover all the bases in what caused this mess. It was the short term subprime loans that brought home appreciation into the mix and made it a requirement in order to get long term (or any term) financing. There are other causes that come into play but the genesis of the current situation was these type of loans being offered to people that couldn’t afford a convention mortgage.

[QUOTE=pipemanid;2167785]That explains a lot…[/QUOTE]

What exactly does it explain?


#9

[QUOTE=jamescooley1;2167792]:iagree:My area has been in a recession then depression since 2002. Over 11,000 foreclosures in just 1 month!:sad:[/QUOTE]

Detroit has been hammered for decades! You have my sympathy. I have read a few articles where lenders are actually giving away foreclosed houses in the Detroit suburbs so they don’t have to pay the taxes on them. I can’t imagine what this next round of automaker cuts are going to do there in Michigan. It looks like the UAW is going to drag the whole state under with them if they don’t give some huge concessions to Ford, GM and Chrysler.


#10

DR.WHO
I guess now Brother BARRACK has a big problem.
However republicans will be happy.
ZAP.:bigsmile::sad:
P.S. He can always ask my advisor BEN STEIN.


#11

[QUOTE=UTR;2167805]…What exactly does it explain?[/QUOTE]

Quite a lot to me…


#12

[QUOTE=pipemanid;2167854]Quite a lot to me…[/QUOTE]

Then share with the class. What does it explain to you?


#13

It’s not just the lending of money to people who couldn’t pay it back. At the root of this huge problem is the idea that such dodgy loans could be packaged up with good ones and sold on; thus removing it from the books and leaving the company to carry on with few inhibitions.

Before this idea became accepted; if a company made a bad decision - or several bad decisions - on a plethora of loans, then they would be the ones to suffer and the damage pretty limited.

After this idea became acceptable, then everyone sold their loans on with not a care in the world to what was being stoked up.

Bad stuff like this - tied up as a ‘good idea’ - replicates exponentially: as the mathematical modellers should know. It’s a complete failure of self-regulation in the financial sector, as whichever continent or country has learned to its cost. Whatever happened to objective monitoring of ‘new ideas’? Can anyone see the parallels with pandemic infectious diseases?

We may not have had H5N1 yet, but my goodness there has been another devastating pandemic of a ‘viral’ idea.


#14

[I]“I estimate that the mortgage market will shrink for the first time in US history and that the credit card market will be 18 months behind it. While just over 70 per cent of US households have access to credit cards, 90 per cent of these people use credit cards as a cash-flow management vehicle, or revolve payments at least once a year. While the credit card market is small relative to the mortgage market, it has grown to play a key role in consumer liquidity. Declining liquidity here will have disastrous effects on consumer spending and the economy”[/I]
Read the article here…http://www.ft.com/cms/s/0/11344d06-befb-11dd-ae63-0000779fd18c.html?nclick_check=1


#15

[QUOTE=pipemanid;2167924][I]“I estimate that the mortgage market will shrink for the first time in US history and that the credit card market will be 18 months behind it. While just over 70 per cent of US households have access to credit cards, 90 per cent of these people use credit cards as a cash-flow management vehicle, or revolve payments at least once a year. While the credit card market is small relative to the mortgage market, it has grown to play a key role in consumer liquidity. Declining liquidity here will have disastrous effects on consumer spending and the economy”[/I]
Read the article here…http://www.ft.com/cms/s/0/11344d06-befb-11dd-ae63-0000779fd18c.html?nclick_check=1[/QUOTE]

This is just the medicine we need to get out of this mess, IMO. People need to start living within their means and quit racking up debt to live a lifestyle they can’t afford. I can’t tell you all the homes I have seen going into foreclosure where the previous owner’s cars sitting in the driveway probably had well over $1,000 loan payments attached to them. Had they not bought into the “consumer” hype we are fed daily then they would probably still be in their homes. My wife and I drive cars that may not be new or luxurious but then again we have no car payments either. This helps temper my grief over not driving around a Mustang GT500. The day of reckoning is here and it spells the end of living beyond our means.


#16

I live in Western Connecticut, Upper Fairfield County. There are McMansions in trouble but most of the area is doing fairly well. My own town is still selling homes and entry level homes are still a hot commodity. The schooling system ranks extremely high and the town fights against high taxes. The town is still quaint and still very livable. We have on 3 police on duty at any given time but most households have guns, we essentially self police and have a very low crime rate. Everyone knows where to throw the bodies.


#17

I already knew they were going to announce this after BF and halfway through Cyber Monday. If it was announce before these days then BF and CM would of suffered.


#18

This problem has many causes but it got to this point because our government did everything it could to keep us out of a recession over the past 8 years to include giving us all money twice. Any idiot knows that the sooner you get your house in order the less pain there will be.
The other big thing that caused this was our government doing nothing when oil was 140 dollars and gas over 4 dollars. All the government did was say stupid things like it is caused by China using more oil or there is less oil now so we need to get used to 4 dollars for gas. Both of these and others people from both parties said were not true. Now they want to blame this problem on home prices and bad loans, which I am sure there ware problems with both but they did not cause the problem high gas prices and not letting us do a correction recession four years ago caused the problem we have today.