Good News Everyone!!!!

Just heard Obama speak and I guess there is nothing to worry about!!!!!

He said he doesn't get caught up in the day to day fluxuations of the stock market (well then how about week to week or month to month) and that LONG TERM, it is a great buy because the prices/ratios are so good.

Well I guess that is great news for anyone who doesn't need money for years and years.....

Well ... long term it is a great buy. Part of investing is investing for the LONG TERM, for decades down the road, and you'll never find a better market for doing so than now. If you're at least 20 to 25 years away from retirement, you should be heavily invested in the market. As you get closer to retirement, you move more to bonds, T-Bills, etc, and away from the volitility of the market. If you can't handle swings like this, and are planning to retire soon, you shouldn't be IN the stock market. There is inherant risk, and it's not for someone about to retire.

Do you want him to apoligize because there is no quick investment with a great return? Deal with it, that's the economic climate we are dealing with.

Sure hope Obama is up to the task with all of the people who are going to be needing help over the next 4 years especially since he has started and dumped the bill/payment on the future generations.

Also, I wonder if the future how high tax rates will become in the future as things continue to get worse. ( So yes save while you can as there may not be alot of leftover money in your checks in the future.)

well people, still seems that nothing to worry about as Obama says we are going to have a speedy economic recovery. Guess the bad times are truely behind us.

Hope he can hadle everything as easily including: the mortagages, banks, credit card problems, stock market, social security, budget, taxes, war, health care, etc, etc, etc.

Then I will agree with him!

http://www.hindu.com/thehindu/holnus/00 ... 081812.htm

Obama vows to bring 'all pillars' in place to boost economy
New York (PTI): U.S. President Barack Obama has assured Americans that he will bring "all the pillars in place" this year for speedy economic recovery of the nation and asked people to allay their fears about future.

So Grill, you're going on record saying that the economy WON'T turn around this year? Is that what I should take out of the mountain of diarrhea you've spewed with these past two posts?

sorry if I am bringing up the tough questions

but all I see is him putting a bandaid on a couple of things when the sht is about to hit the wall!

>>> Hope he can hadle everything as easily including: the mortgages, banks, credit card problems, stock market, social security, budget, taxes, war, health care, etc, etc, etc.

but I am willing to give him a shot, and sorry you seem upset that I am just posting Obama's words.

>> New York (PTI): U.S. President Barack Obama has assured Americans that he will bring "all the pillars in place" this year for speedy economic recovery of the nation and asked people to allay their fears about future.

You post gibberish yet believe you're making sense. I just want to understand what you're trying to say. It's my understanding that you believe that the economy WON'T turn around this year, is that correct?

If not, what is it that YOU think should be happening, what do YOU think will happen, what do YOU want to see done about it. I know what Obama has said, what is your opinion on it?

FYI. Lets look at credit cards. DO you have any? Well every bank no matter what your past payment history is raising rates to top levels. LIKE CLOSE TO 30 %. So what is going to happen when all of the people who start getting these rates and then can't make their full monthly payments anymore.

I really feel sorry for people who just carried some money on their cards cause they had a good rate but now with the increases I bet you alot will get out of control before they pay it off.

I could talk about any of the above problem areas but unfortunately simpletons just want to ignore points like this.

and I think the shit is about to hit the wall, so it is hard to just do as Obama says, >>> U.S. President Barack Obama has assured Americans that he will bring "all the pillars in place" this year for speedy economic recovery of the nation and asked people to allay their fears about future.

I'm not even going to get into you talking point on credit cards, which is a gross exaggeration of the true situation.

Again I ask you to answer a simple Yes or No question: Do you believe the economy will turn around this year (2009)? I define turnaround for this question as pull out of the negative economic growth we have seen for the past few quarters.

Grill: Obama's doing the best he can with an incredibly shitty situation. Ultimately the resolution for the current crisis isn't within his or anyone else's grasp. So forgive him his pep talks about the economy - they're meant only to spur the economy on to repair itself. With or without them, people will lose their house, interest rates will go up, jobs will be lost etc, etc. This we all knew. So... what's your point?

My opinion is No.

The Dow will be lower, unemployment higher, inflation will go up and peoples incomes/purchasing power will be lower. There will still be a mortgage problem and like Grill mentioned the publics revolving debt problem is going to get very problematic.

Sanders from Vermont questioned Bernanke about that issue of Banks recieving Fed money at extremely low interest rates while at the same time raising the rates of consumers credit cards to loan shark levels. No surprise that Bernanke had no real answer to that.

Finally, I have no reason to believe Bernanke when he says he thinks it will start to turn around.

Well, unemplyment will be higher, incomes will be flat, the mortgage issue won't be totally solved. Those are all very true.

Inflation is different, it's expected. Deflation is the nightmare, and deflation is what we're trying to avoid. Inflation, so long as it isn't runaway, is an acceptable outcome. Credit is a very indepth conversation, so I won't take the time to address it here.

The real question, and the first step to any recovery must be positive economic growth, the GDP must begin growing again before anything else you mentioned can begin to turn around. Personally, I think that will happen the 4th quarter of this year and the recovery in other sectors mentioned will begin slowly in 2010.

I am an optimist I agree with Eagle and the economy will start recovering in the 4th quarter.

Reports say Citi is having a great quarter, extremely profitable. Also say they ran stress tests surpassing what the government is running and had enough equity to handle it. It's only one bank, but it's a very good sign, if only BoA could say the same.

I'd hope and pray they are having a great quarter when their stock is worth 1$

As Bill Maher asked this past Friday on his show, why must we always be "growing the economy?" Why can't it just stay flat at a place where we are doing well?

Inflation has nothing to do with growing the economy. Inflation is simply an increase in the price of goods and services and can be caused by any number of things, greatly simplified it's caused when:

1) The supply of money goes up.
2) The supply of other goods goes down.
3) Demand for money goes down.
4) Demand for other goods goes up.

The growth of the economy is tied to the AMOUNT of goods and services a country produces, and ideally there would be growth regardless of inflation. As for why it can't just stay flat, there are a variety of reasons, but a simple reason is population growth. If GDP stays flat in the face of population growth, the overall wealth of a nation diminishes, people get poorer, and the standard of living in the country goes down. This is just one easy example, there are many more, but suffice it to say, economic growth is a neccesity.

The long and short of it is, Mr. Maher likely slept through his economics class.

so on the growth of the economy, what happens when more products are produced ( for example cars ) but alot of them aren't sold because the people don't have the money, jobs, credit, needed to buy them.

Recessions and Depressions tend to lag the reality a bit because they use GDP to judge economic growth. Each product produced counts in the year it is made, not sold. So a car produced in 2008 counts towards 2008's GDP, regardless of the fact that it may sit on a dealers lot well into 2009.

This causes a lag effect. As the economy enters a downturn and unsold goods begin to pile up, companies in all sectors react accordingly, cutting production just as GM, Ford, etc were forced to do. This cut in production then leads to a decrease in GDP, which then causes two consecutive quarters of negative growth ... aka a recession.

So in answer to your question, everything produced counts toward the GDP, and if those goods don't sell, it causes a whiplash effect that hits the GDP in future quarters.

If only you would have known earlier as today you could have made about 40 % interest in 1 day on Citibank.

I'm just waiting for all those critics who blamed Obama solely for the market falling will give him absolute and complete credit for it rebounding. It's only logical.

Based on today only???

Anyway I personally would love it to be over but usually everyday brings some bad news to weigh on the market.

Groucho's point is that the wingnuts, like pretty much everyone at Fox News, blame daily downturns in the market on whatever Obama did that day. And they've been trying to blame the overall market decline on Obama's entire presidential run, claiming among other things that the market tanking began when Obama secured the nomination.

Sort of like you blaming the collapse on Republicans and whatever deregulation policies they perused?