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Thread: Is Our Economy Healing?

  1. #1
    Havakasha is offline
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    Is Our Economy Healing?

    http://www.nytimes.com/2012/01/23/op...ling.html?_r=1

    By PAUL KRUGMAN
    Published: January 22, 2012


    How goes the state of the union? Well, the state of the economy remains terrible. Three years after President Obama’s inauguration and two and a half years since the official end of the recession,unemployment remains painfully high.
    But there are reasons to think that we’re finally on the (slow) road to better times. And we wouldn’t be on that road if Mr. Obama had given in to Republican demands that he slash spending, or the Federal Reserve had given in to Republican demands that it tighten money.

    Why am I letting a bit of optimism break through the clouds? Recent economic data have been a bit better, but we’ve already had several false dawns on that front. More important, there’s evidence that the two great problems at the root of our slump — the housing bust and excessive private debt — are finally easing.

    On housing: as everyone now knows (but oh, the abuse heaped on anyone pointing it out while it was happening!), we had a monstrous housing bubble between 2000 and 2006. Home prices soared, and there was clearly a lot of overbuilding. When the bubble burst, construction — which had been the economy’s main driver during the alleged “Bush boom” — plunged.

    But the bubble began deflating almost six years ago; house prices are back to 2003 levels. And after a protracted slump in housing starts, America now looks seriously underprovided with houses, at least by historical standards.

    So why aren’t people going out and buying? Because the depressed state of the economy leaves many people who would normally be buying homes either unable to afford them or too worried about job prospects to take the risk.

    But the economy is depressed, in large part, because of the housing bust, which immediately suggests the possibility of a virtuous circle: an improving economy leads to a surge in home purchases, which leads to more construction, which strengthens the economy further, and so on. And if you squint hard at recent data, it looks as if something like that may be starting: home sales are up, unemployment claims are down, and builders’ confidence is rising.

    Furthermore, the chances for a virtuous circle have been rising, because we’ve made significant progress on the debt front.


    Click on the link at the top to read full article.

  2. #2
    Havakasha is offline
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    What do you think? Is it healing?

  3. #3
    SiriuslyLong is offline
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    Quote Originally Posted by Havakasha View Post
    What do you think? Is it healing?
    Yes, I do.

    Two empty buildings on my way to work are now back IN BUSINESS generating TAX REVENUE for city, state and federal governments. You see, that's just one thing that business's do. Both previous business didn't make it. In fact, Michigan now has a surplus due to progress (so now the left and right are arguing what to do with it lol). I hope those new business owner's aren't "rich". It would suck to be targeted by people like you after filling those empty buildings with TAX GENERATING business's.

    One empty building near our mall is now filled, and another is actually being built.

    It's not politics. It's observation. I'm not reading about it in political blogs, I'm seeing it on the street. I see it with all the job openings in my industry and all the head hunters looking to place me. I need to be careful. I don't want to earn too much as YOU and your ilk will want to take it away from me. Gross wages up, taxes up, net wages wash. Don't laugh, you may recall last year it happened to me.

  4. #4
    Havakasha is offline
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    Also how do you think that England's austerity program has worked?

  5. #5
    SiriuslyLong is offline
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    Quote Originally Posted by Havakasha View Post
    Also how do you think that England's austerity program has worked?
    LOL, so now this is a thread about England after telling me to keep BIG OIL in the BIG OIL thread as opposed to the TAX THE RICH thread....................

  6. #6
    SiriuslyLong is offline
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    Quote Originally Posted by SiriuslyLong View Post
    Yes, I do.

    Two empty buildings on my way to work are now back IN BUSINESS generating TAX REVENUE for city, state and federal governments. You see, that's just one thing that business's do. Both previous business didn't make it. In fact, Michigan now has a surplus due to progress (so now the left and right are arguing what to do with it lol). I hope those new business owner's aren't "rich". It would suck to be targeted by people like you after filling those empty buildings with TAX GENERATING business's.

    One empty building near our mall is now filled, and another is actually being built.

    It's not politics. It's observation. I'm not reading about it in political blogs, I'm seeing it on the street. I see it with all the job openings in my industry and all the head hunters looking to place me. I need to be careful. I don't want to earn too much as YOU and your ilk will want to take it away from me. Gross wages up, taxes up, net wages wash. Don't laugh, you may recall last year it happened to me.
    I was truly hoping that you'd see the point, but that clearly isn't the case. Do you even know what I am trying to point out? Really? I candidly think you don't.

  7. #7
    Havakasha is offline
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    This thread is about our healing economy. I asked you if you are still backing Englands Austerity program and whether it was healing their economy?
    Stop avoiding. I am comparing austerity versus stimulus.
    I didnt think you would answer. Its becoming your preferred method. lol
    Last edited by Havakasha; 01-26-2012 at 03:05 PM.

  8. #8
    SiriuslyLong is offline
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    Quote Originally Posted by Havakasha View Post
    This thread is about our healing economy. I asked you if you are still backing Englands Austerity program and whether it was healing their economy?
    Stop avoiding. I am comparing austerity versus stimulus.
    I didnt think you would answer. Its becoming your preferred method. lol
    I don't know about England. Sorry. I read headlines that Europe has a debt crisis, but other than that........

    Do you think Greece should stimulate its way out of its debt crisis?

  9. #9
    Havakasha is offline
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    I have asked you about England, whose austerity program you have praised. I am not surprised your unwilling to go there.

    You have always proved to be chicken when something you have said was proved wrong.

  10. #10
    Havakasha is offline
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    George Soros tells policy makers in Davos they should work to save the rest of the eurozone rather than focusing on Greece. He asserts the ECB and others should act in concert as “lenders of last resort” to governments, which would allow Italy and Spain to issue treasury bills at ~1%. If austerity measures are pushed, the eurozone will fall into a debt-deflation spiral prompting widespread social disorder.



    What does Peter Schiff say? Lol

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