OK, the Dow goes over 13,000...so, how does that compare to this?

[Frustratedlady]

Breaking News from ABCNEWS.com:

ECONOMIC GROWTH HAS WORST PERFORMANCE IN FOUR YEARS AT 1.3 PERCENT IN FIRST THREE MONTHS OF 2007; EXPERTS BLAME HOUSING SLUMP


http://abcnews.go.com?CMP=EMC-1396

[leftofthedial]

1. just to keep up with inflation since 2000,

the Dow would have to be over 21,000.

the economy is in the toilet.

unless you're a billionaire, especially a foreign billionaire.

[Warpy]

10. Yes and no

The stock market was hyperinflated in 2000. P/E ratios were way out of whack. The failure of the market to increase at the real inflation rate has brought those ratios back to their historical positions.

However, yes, the economy is in the toilet. It's mostly due to depressed wages as the demand side of the economy has been slowly strangled to death, with only easy credit supporting it.

People are drowning in debt. This economy is unsustainable.

[Frustratedlady]

12. A good indication of the state of the economy to me is...

seeing the increase in the number of people buying clothes and other essentials at garage sales. I realize this sounds pretty ridiculous, but I am seeing a marked difference this year compared to the last 3-4.

I purchase for resale, but these young families are purchasing for survival.

Granted, it is good to supply clothing for your family in the cheapest way possible, but these people aren't just being economical, they are hurting.

[AllegroRondo]

2. it means people are pulling their money out of housing

and putting it into stocks?

[Dogmudgeon]

5. Not stocks, but FOREIGN stocks

Capital is leaving the USA like wasps from a burning nest.

The US Dollar is worth about 60% of what it was when the Boy King was installed.

Ave atque salve!

--p!

[gravity]

17. But our stocks are rising

So at least some of the money is going into our markets.

[Dogmudgeon]

19. But not keeping pace with inflation at all

Considering inflation, the market has dropped to about 60-70% of its 2000 level. Actual growth could be described as "anemic".

What is causing it? A lot of things, but Iraq looms large -- and we haven't even begun paying the bill for it yet.

We were paying for Vietnam until 1993.

--p!

[Greyhound]

6. We've been using our houses as ATM's for several years now and as

the market "corrects", well, I'll leave it to you to imagine what the result will be.

Cash is King

[A HERETIC I AM]

3. Home builder stocks are down, but Diesel Engine maker Cummins is up $7.00 already today....

so.....what do you make of that?

[Javaman]

8. buy a diesel truck and live in it. LOL nt

[Greyhound]

4. All a matter of what you look at and in what context.

As usual they are picking up on any bright points to keep the sheep from looking around at how thin the herd is getting. Just like the faked unemployment and GDP numbers, this is just another smoke-screen.

[Javaman]

7. And the dollar is down again against the record high euro.

the euro closed at 1.366 yesterday.

in 2000 the euro was 82 cents against the dollar.

time to sing, "we're out the money, we're out the money..."

[Frustratedlady]

11. Ouch!

When, if ever, will we receive the report on how much new currency they are printing? How long has it been since they issued the report?

[Javaman]

13. I seriously doubt we will ever get a new report.

If the economy starts to really take a dive, even the slightest mention of new currency would cause the economy to drop through the floor, because it would mean that the current currency is for all basic reasons worthless.

Frankly, when that day hits, having new currency will be the very least of our problems.

If you don't have one already start a garden and learn how to fix things now.

[Frustratedlady]

20. I was born shortly after the Depression, so I had a good teacher...

on making do. Our family was very conservative because of the Depression, and I will survive...may be cold, but I will survive.

[CountAllVotes]

15. it is a lot I know that much

case being that of Ireland. There really are not many jobs there, much less jobs that pay a lot. However, they have their McMansions popping up all over the place there too. How/where does the money come from for these places?

Answer: CREDIT - same as here.

[Javaman]

16. Once upon a time, the world would follow our lead in things

and "generally" speaking it was a good thing.

Sigh.

I wonder what the level of personal savings is of the other "developed" nations. If they are anything like us, the world is in for the big hurt.

[CountAllVotes]

18. from what I know

savings accts. in Ireland pay VERY little (.6% it was when I was there in 2005). It seemed to me that no one did much business at the Bank of Ireland (the main bank in the country).

It is a totally faux economy based on absolutely nothing. Many of the traditional family farms are a thing of the past; gone forever perhaps.

They are riding the tail of what they have come to call "The Celtic Tiger". I for one am not impressed nor are many other people I happen to know from Ireland.

I fear for the worst for Ireland when things come down. They have some jobs there that are from America, like Miller and Budweiser beers for example. They were doing a lot of work for IBM before they sold off to Lenovo in China which was a very bad move by IBM IMO. That hurt Ireland quite a bit I believe.

However, the average Joe on the street is damn lucky to find a job that pays 20-25K Euro a year. And that is no joke either and the cost of everything there is absolutely astronomical!

They now have a population of people that are from all over the EU. This is not really that popular was my impression. The days of the "Old Sod" are long gone sadly.

:kick:

[Frustratedlady]

21. Very interesting. Thanks for posting that info.

Good thing I like potatoes. We may have to live on them, eh?

[CountAllVotes]

22. actually, when I was there

some of the more free thinker types of Irish people were in fear of another blight due to global warming. So, there was great worry there about massive crop failures and they have plenty of problems in that country whether they care to admit it or not. Few remember the history of this country being most of the people living there are under the age of 40 years.

I had not been there in 22 years and it has changed dramatically. In fact, you'd never know it is even the same country.

I know one thing, it seemed to me that the old people living there were not jumping on the credit buy buy buy scheme. Many of the very old were still living in their old thatched cottages and it was a very big deal to have the roof re-thatched.

It was quite odd as I met an old 85 year old man while there that new my relatives. That totally blew me away. The very old still alive there were disgusted with the "new Ireland". I can say that without any apprehensions whatsoever (they HATED it!).

Many languages are now spoken there and many people there do not even know any English at all. They tend to work for peanuts in hotels and the like during the rapidly dwindling tourist season. Because of all of the hassles getting there and the costs being so high due to the weak dollar, not many Americans are traveling there anymore. I was fortunate when I was there because the dollar was at about $.85 on the exchange briefly before it dwindled to where it now is.

America has very strong ties to Ireland whether the Irish or the USA likes to admit it or not being I believe there is something like 40,0000,000 Irish Americans (or more?) here in the USA.

I hope this provides more insight into what a "global economy" is all about. It is about everyone is what it is about. We must all learn to live together in the same world and improve this world and make it better for the next generation is my strong belief.

I am an Irish American myself and I am also of Native American descent as well. I didn't have much problems while there when I told them this as they have an utter fascination with the "Red Man" as they call even the mixed bloods like myself from the USA.

:dem:

[MedleyMisty]

9. You know

When I hear statistics on the news on NPR like "The unemployment numbers have dropped .01% from last month." I am reminded of "The chocolate ration was raised today from 30 grams to 20 grams."

[Javaman]

14. Or the old gas rationing joke from WWII...

"gas rations were doubled today, from 20 gallons to 10 gallons!"