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Unit 5302 · 09-06-2005, 12:58 AM

The jobs being created are low paying. More people work than ever before, taking jobs they don't want because they don't have a choice.

Arguing home sales as a legitimate benchmark of the economy's situation is pretty weak. The fact is interest rates were ridiculously low, resulting in the ability to afford a more expensive house with less income. This in turn created a huge inflation in house prices, and just like stocks in the late 90's, people have become obsessed with getting on board the real estate gravy train. The same low interest rates spurred a huge balloon in household debt as people have been relying more than ever on credit to buy the things they want, rather than the things they can truly afford. Many people took advantage of the low interest rates and refinanced, stripping the equity out of their houses to buy these "durable goods."

Foreclosures are up, and they will be increasing drastically in the next 2-3 years as people that purchased all they could afford and a little more will have to refinance their 3 year ARMs. This will result in a decline, yes decline, in housing prices across many metropolitan areas in the United States. As Greenspan has indicated, people are way too obsessed with the idea real estate will guarantee them a huge paycheck.

Debt consolodation has become big business, and credit card lobbiests have succeded in getting favorable legislation passed to remove the lender's responsibility to only lend appropriate amounts of money to people in this country.

All this in the face of a huge and continually growing budget deficit which hurts the value of the money people in this country are actually earning. The increase in per capita GDP over the past few years is largely attributable to the double digit increases in executive compensation.

CEO's now make 500x more than the base workers wage in the company. That's 10x more than any other nation in the world. With executive pay usually based on CEO payscales, it's a wonder average GDP is increasing.

Basically, the US economy IS screwed right now, but ridiculously low interest rates and tax breaks are artificially painting a pretty picture. Just like traditional value indicators in the stock market have been thrown to the wind, the traditional indicators for the economic status are void.

Bush has done a horrible job, and it's painfully obvious at this point. Only a fool would be so stubborn and arrogant to continue defending him. Even so, it's not like there were viable options to vote for in the last election anyway. It's six of one, and a half dozen of the other.

The republican party has become every bit as worthless as the democrats. Together, they have run this country, and the hopes and dreams of millions of American citizens straight into the ground, betraying the trust of the citizens at every turn. Whether it's the partisan bullshit keeping progress out of the capital or simply catering to each party's personal special interests, our representatives has become the most corrupt and sickening force in the world.

09-06-2005, 12:58 AM	#18
Unit 5302 Registered Member Join Date: May 1999 Posts: 5,246	Re: Fuel Prices The jobs being created are low paying. More people work than ever before, taking jobs they don't want because they don't have a choice. Arguing home sales as a legitimate benchmark of the economy's situation is pretty weak. The fact is interest rates were ridiculously low, resulting in the ability to afford a more expensive house with less income. This in turn created a huge inflation in house prices, and just like stocks in the late 90's, people have become obsessed with getting on board the real estate gravy train. The same low interest rates spurred a huge balloon in household debt as people have been relying more than ever on credit to buy the things they want, rather than the things they can truly afford. Many people took advantage of the low interest rates and refinanced, stripping the equity out of their houses to buy these "durable goods." Foreclosures are up, and they will be increasing drastically in the next 2-3 years as people that purchased all they could afford and a little more will have to refinance their 3 year ARMs. This will result in a decline, yes decline, in housing prices across many metropolitan areas in the United States. As Greenspan has indicated, people are way too obsessed with the idea real estate will guarantee them a huge paycheck. Debt consolodation has become big business, and credit card lobbiests have succeded in getting favorable legislation passed to remove the lender's responsibility to only lend appropriate amounts of money to people in this country. All this in the face of a huge and continually growing budget deficit which hurts the value of the money people in this country are actually earning. The increase in per capita GDP over the past few years is largely attributable to the double digit increases in executive compensation. CEO's now make 500x more than the base workers wage in the company. That's 10x more than any other nation in the world. With executive pay usually based on CEO payscales, it's a wonder average GDP is increasing. Basically, the US economy IS screwed right now, but ridiculously low interest rates and tax breaks are artificially painting a pretty picture. Just like traditional value indicators in the stock market have been thrown to the wind, the traditional indicators for the economic status are void. Bush has done a horrible job, and it's painfully obvious at this point. Only a fool would be so stubborn and arrogant to continue defending him. Even so, it's not like there were viable options to vote for in the last election anyway. It's six of one, and a half dozen of the other. The republican party has become every bit as worthless as the democrats. Together, they have run this country, and the hopes and dreams of millions of American citizens straight into the ground, betraying the trust of the citizens at every turn. Whether it's the partisan bullshit keeping progress out of the capital or simply catering to each party's personal special interests, our representatives has become the most corrupt and sickening force in the world.