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01/26/2011

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BJ

Despite the inflated ego of the average American, we represent only 5% of the world's population. Since when has 5% of anything amounted to anything? On top of that, every level of our society is bankrupt, living on printed money.

Here is a telling interview on CNN:

http://money.cnn.com/video/news/2011/01/26/n_davos_nouriel_roubini.cnnmoney/

The Fed's master plan may be working, in the short term:

"Improvements in the stock market have also helped give consumers more confidence, reducing the drive to choose saving over spending. The savings rate, which had climbed to 7.2% in early 2009, had fallen to near 5% by the end of 2010. "People got bored with being frugal. It's much more fun to go out there and spend money," said Wyss."

http://money.cnn.com/2011/01/26/news/economy/consumer_spending_rebound/index.htm?hpt=T2

But maybe not:

"It's two steps forward, one step back. In the first week of January, Gallup Poll Chief Economist Dennis Jacobe noted that daily consumer spending in stores, restaurants, gas stations, and online dropped dramatically. Spending averaged $55 in the week ending January 9 – down as expected but also well below the $68 average for the same week during the previous year. Whatever reasons for the big drop, Jacobe says "there are no signs that consumer spending will improve much in early January 2011.""

http://finance.fortune.cnn.com/2011/01/14/three-signs-consumers-are-inching-back/?iid=EAL

And on the jobs front:

"The move eliminates 1,700 middle management positions as the company "flattens" its management structure into two levels instead of three, now represented by store managers and assistant managers. At the same time, Ahearn said Lowe's is also hiring between 8,000 to 10,000 part-time workers nationwide to improve customer service in stores over the weekends."

Wow, replace full time jobs with lower paying part time jobs. Let me guess, no benefits.

So who exactly is going to be spending more, other than the government?

CBO announced the deficit should increase $1.5 trillion this year. Yipee. Keep the printing presses running. The American public refuses to assume more debt, especially with underwater homes, so Washington will assume the debt for them. Yes, good times are here, for Wall Street, which just went over 12,000, for no real reason at all, other than to make paper holders believe they are richer. The next crash is going to hurt.

http://money.cnn.com/2011/01/26/news/economy/budget_outlook_cbo/index.htm

Gail

I for one welcome our Terminator Overlords.

analysispros

People forget that corporations act on set of rules that have been voted by the people of this country. Corporations should exist for the benefit of the country and majority of people not few rich people that control most of the stock or even live overseas - that is plain wrong. If people rebel against corporate power and limit corporate expansion overseas we will have a totally different reality. The reality today is that corporate power is the new religion for this world. If people will not go to the street and protest this excess of corporate power - nothing will change. It is not just jobs. Look where the money is flowing! Corporate money and stock holder’s money is being diverted to Asia. That is where they see the growth to their money. So they are taking your money and making jobs overseas - now tell me this should legal? This should be banned if we want to see America growing again – American money needs to stay in the US if want to see growth here.

elvinator

well, that sure pegged my strange-o-meter. dow owns union carbide who killed all those people in bhopal. i guess they got in the way of progress. when the terminator mentions 'shareholder value' it makes my blood boil. it's corporate speak for unmitigated greed. the shareholders get haircuts, the ceos get richer. the terminator is a pathological revenue machine, a pythonesque head chomping all in its path.

A Voice from the Dust

This is what happens when we make money our god!

Corporations are only a natural extension of the economic choices of society. And our society is a sick, disgusting, pathological society. I can't wait for our system to fall so we can spare the rest of the world our moral and ethical corruption.

We had far, far better values and principles back when God was our god, ones that were actually conducive to free, healthy societies.

Repent and return to Him now, for His judgment is upon us for our wickedness, and our false idols of money and luxury will all soon be destroyed. When it all comes down you may be poor by today's standards, but at least you will have your soul. Please cast off your luxuries now, remember what is most important in life, and no matter what happens in the coming years, no one can take that from you!

He whose heart has returned to God will be able to bear the coming hardships and be strengthened by Him for that day even as the rest of civilization disintegrates into violence, mistrust, envy, and despair.

If you have any friends that you know do not live for money and possessions, because they have given up "well being" in those areas for their God and their friends, keep close to them! Friends like that are worth their weight in gold.

Gail

"Christmas is over, Santa is gone and he's not about to return any time soon."

http://www.marketskeptics.com/2011/01/there-is-no-recovery.html

Morocco Bama

I've given up listening to economists, business analysts and the like. They're full of shit. They're shysters trying to peddle their wares. I liken them to Catchers In The Rye...only when they catch you, they throw you right back into the fracas from whence you were spat.

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