Author Topic: Economic Tumble Worse Than Expected in 3rd Quarter  (Read 1638 times)

Pokethis

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Economic Tumble Worse Than Expected in 3rd Quarter
« on: November 25, 2008, 09:34:38 AM »
From Huffington Post: http://www.huffingtonpost.com/2008/11/25/economys-tumble-even-wors_n_146287.html

The thing that caught my eye was "Underscoring the strain faced by consumers, the report showed that Americans' disposable income fell at an annual rate of 9.2 percent in the third quarter, the largest quarterly drop on records dating back to 1947."  Somehow we are losing capital but I don't know how this is calculated.  Our purchasing power is being eroded so the quicker we can get prepared the better or the more we can buy right now compared to later.  Add 9.2 percent onto 12-14% "real" inflation and we're over 20% errosion in purchasing power.

The Fed will undoubtedly (sic) reduce the interest rate again probably to 0% but Japan did this as well and it never helped them out of their 10 year long recession.  As soon as this report came out the stock market took a dive so there seems to me to be very little analysis of the long term by the market or the rally would not have taken place.

Also, Obama won't be able to do much about it even with the programs (look at FDR programs that did little before the war but did keep people working).

I'm going to go get more food and basic clothing (underwear, socks etc.) and some other things today.