Factory Orders Surge

[Havakasha]

According to john its because the Republicans won the House yesterday.
Hope you get the joke.

Nice to hear a little postive economic news.

Factory demand surges in Sept as businesses spend
Factory orders surge broadly in September as businesses invest in airplanes, and machinery

WASHINGTON (AP) -- Orders to U.S. factories rose broadly in September, propelled by business spending on commercial airplanes, boats and machines.

The Commerce Department says that factory orders rose by 2.1 percent in September, the steepest increase since January. Orders were flat in August.

Excluding the volatile transportation sector, orders rose 0.4 percent, after gaining 1.3 percent in August.

Business spending on costly, long-lasting goods such as airplanes and heavy machines produced most of the demand. But consumer spending also rose by 1.0 percent, after running flat in August.

Economists have worried that recession-weary consumers will not spend enough to keep factories moving as business spending subsides. Wednesday's report may ease those fears.

[SiriuslyLong]

We had a good September, and a good October. It just takes time. Maybe QE2 isn't needed? Maybe discussion of further stimulus is moot?

[Havakasha]

Things might get slowly better, but i think we have major problems in
this country that i dont see getting solved any time soon, especially now
that we have divided govt. Unemployment is going to stay high for a long time.
It will be interesting to see how all this plays itself out. Will Republicans
compromise on letting the tax cuts expire for the top 2% or will Obama
find a way to move toward the Republican position.
I am looking forward to the drama.

[SiriuslyLong]

Housing will continue to be a drain.

http://finance.fortune.cnn.com/2010/...recovery-soon/

Back when we where DINK's, my wife and I would drive around wasting time. We'd see subdivision after subdivision going up. I'd ask 3 questions - who's buying these houses, where are they coming from and how the "F" can they afford it?

The supply of houses is soooo high from the building boom. When this mess started, "experts" were saying that it will take 5 - 10 years to reach equilibrium. I've said this before, when you buy a house, the next thing that happens is that you're buying new carpet, getting a new paint job, replacing dishwashers, refrigerators, garbage disposals, washers, dryers, central air, furnace, hot water heater, furniture, toilets, baths......... (I know this first hand LOL - man the money we've spent). That's what the economy will be missing for the next several years.

Ooooooh, Erica Payne is on. Man is she a good looking woman.

[SiriuslyLong]

Things might get slowly better, but i think we have major problems in
this country that i dont see getting solved any time soon, especially now
that we have divided govt. Unemployment is going to stay high for a long time.
It will be interesting to see how all this plays itself out. Will Republicans
compromise on letting the tax cuts expire for the top 2% or will Obama
find a way to move toward the Republican position.
I am looking forward to the drama.

Here is a link to a NYT article from yesterday regarding options to the "Bush Tax Cuts". I like the millionaire tax, and a greater than 35% tax bracket(s).

http://www.nytimes.com/2010/11/03/bu...1&ref=business

[Havakasha]

Yes, housing will definitely be a drag. Its been obvious from the get go
that this severe recession (and some of the structural changes in American
society and business) was going to take a long time to unwind.
I wish we had more of a parliamentary system whereby one party in power
gets to see their policies passed and then people get to vote whether they
think they are working or not. If they vote the party in power out then the new party comes
to power and gets to try their poliicies. As it stands now the party out of power can
stop most politicies being passed by simple fillibuster. Seems backwards to me in
a time when when we have BIG problems. Anyway...

[Havakasha]

Here is a link to a NYT article from yesterday regarding options to the "Bush Tax Cuts". I like the millionaire tax, and a greater than 35% tax bracket(s).

http://www.nytimes.com/2010/11/03/bu...1&ref=business

Good article. I agree with you on the millionaire tax.