Is the economy that bad??

[SFR]

I see all the complaining on this site about the industry and economy. What is so bad? Most of the hurting companies are the ones that were always questionable...

It was kind of obvious before (since 2000) who can last and who might not be able to.


BTW, remember it is the hungness that counts.

 

[CitationUltra]

It is not so much that the overall economy is that bad. What we are seeing is flawed business models have a disproportionate influence on the economy.

This refers to the credit business and the airlines.

 

[NuGuy]

Heyas CU,

The credit crisis is far, far worse than the general public has been led to believe.

The housing crisis is next, followed by a large spike in necessities: food & fuel.

If anyone has ever seen the movie "Rollover", you get the idea.

I've zeroed out my debt, and converted all my assets to precious metals, cash and actual currency.

Tough times ahead...dress warm.

Nu

 

[AnimalMother]

BTW, remember it is the hungness that counts.

You mean guys like me will be fine. Cause I am hung like a friggin bull.

 

[machaf]

And I'm hung like a horse.

 

[Captain Overs]

It is not so much that the overall economy is that bad. What we are seeing is flawed business models have a disproportionate influence on the economy.

This refers to the credit business and the airlines.

Those crazy airlines!! I can't believe they didn't plan a business model based on $100 dollar a barrel oil. How stupid. (Sarcasm intended

 

[jhill]

Heyas CU,

The credit crisis is far, far worse than the general public has been led to believe.

The housing crisis is next, followed by a large spike in necessities: food & fuel.

If anyone has ever seen the movie "Rollover", you get the idea.

I've zeroed out my debt, and converted all my assets to precious metals, cash and actual currency.

Tough times ahead...dress warm.

Nu

Another y2k nut. Tell us how you prepared for that one or were you still living with Mom and Dad

 

[BIGGOAT]

My personal economy is doing great! Now if my airline will just stay in business...

Goat

 

[skyaddict]

Heyas CU,

The credit crisis is far, far worse than the general public has been led to believe....

I've zeroed out my debt, and converted all my assets to precious metals, cash and actual currency.

Tough times ahead...dress warm.

Nu

I'll grant you that the credit crisis is going to take a lot longer than 2008 to get sorted out and written off, but to all you doomsday / precious metals commodities nuts- if the world economy is going to collapse in a great depression, don't comodities prices then collapse too from lack of demand? You guys trying to time the commodities market perfectly? (There sure seems to be a bug commodities bubble underway.) And if it's Asian growth that is going to sustain comodities prices from collapse (which might be the case), then doesn't that become the buffer against the collapse of the worldwide economy? I mean, you can't have it both ways.

I think the U.S. is going to be slow growth (but not contraction beyond a quarter or two) for some years, as we adjust to years of unhealthy imbalances such as two Greenspan-induced bubbles, but I think the world economy can have a soft landing and keep the U.S. slump from getting too deep, *if*, and this is the key *if*, we don't suddenly give in to protectionist idiocy.

 

[Secret Squirrel]

People seem to forget that this same thing happened 20 years ago. It was called the Savings and Loan meltdown and caused a world wide recession at the end of 80 beginning of 90. 160 billion bailout (in 1990 dollars and that was just in the USA) which also slammed the credit industry causing a collapse of the housing industry. If we do not know our history, we are doomed to repeat it.

 

[UALjan15]

There sure seems to be a bug commodities bubble underway.

Where do they trade "bug futures?" I would like to go long on mosquitos this summer. The snowpack is pretty good in the Rockies this spring, providing ample larvae conditions. Also, the price of mosquitos hasn't been driven up yet by speculation, at least nothing like that run-up we had in cockroaches after Katrina!

Cheers!

 

[SFR]

We are in for a mortgage meltdown. McDonald's actually has that on the menu, mortgage meltdown. It tastes good. Has cheese.




The hungness!

 

[Colonel Savage]

Where do they trade "bug futures?" I would like to go long on mosquitos this summer. The snowpack is pretty good in the Rockies this spring, providing ample larvae conditions. Also, the price of mosquitos hasn't been driven up yet by speculation, at least nothing like that run-up we had in cockroaches after Katrina!

Cheers!

HEY! You're a funny guy!!

 

[CitationUltra]

Those crazy airlines!! I can't believe they didn't plan a business model based on $100 dollar a barrel oil. How stupid. (Sarcasm intended

They were selling seats below cost with oil at $50 bbl. They were beating each other senseless and selling at below cost when the economy was at its peak. The airline business model--any airline--that cannot or will not price for profit is non-viable.

Robert Crandall, the former Chmn. and CEO of American once said "...we're always in the grip of our stupidest competitors." He was right. Only now, every airline is in the grip of that stupidity.

 

[luckytohaveajob]

Heyas CU,

The credit crisis is far, far worse than the general public has been led to believe.

The housing crisis is next, followed by a large spike in necessities: food & fuel.

If anyone has ever seen the movie "Rollover", you get the idea.

I've zeroed out my debt, and converted all my assets to precious metals, cash and actual currency.

Tough times ahead...dress warm.

Nu

Those that fail to plan, plan to fail.
Wise advice in troubled times.

 

[NuGuy]

Those that fail to plan, plan to fail.
Wise advice in troubled times.

Yup. I continue to be amazed at people who tell me that "morgages" are "good debt".

I hate to put on my tin foil hat, but looking at the last 10-15 years, it would seem that some big wigs were sitting around one day and had the following observations:

"We've already convinced people to spend, spend, spend most of their paycheck. What's left?"

1) Old people have a lot of equity in their homes they refuse part with, and leave it to their kids.

2) People in general put too much money in their homes.

3) People are getting a free ride on credit cards and check float.

So they said: "How can we snake people out of what's left of their money"

In evidence:

Reverse morgages: Cash out now, spend, leave debt to your kids instead of assets

Home equity loans: Take that pesky equity and SPEND, SPEND, SPEND.

Debit cards: Why give 28 days free money, when you can grab it right away?

There is no such thing as "good debt". Sure, you can deduct morgage interest, but you don't get all of it back. For every $1 in interest you pay, you get 0.33 back, and 0.66 goes to the morgage company.

If you OWN your home, you pay 0.33 in extra tax, but you KEEP 0.66.

And debit cards are just stupid. If you're too lazy to manage your money, then just live in a trailer park and mooch.

Nu

 

[vetrider]

Do you ever even really "own" a house? An old head told me that even if you "own" it free and clear, don't pay your property taxes and see what happens.