Article

2009-04-10 Arabia

Global Downturn Didn't Start in the U.S. (no matter what Bambi says)

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Posted by Barbara Skolaut 2009-04-10 00:06|| || Front Page|| [4 views ] Top

#1 At least one part of the US economy is already getting healthier. February's trade deficit shrunk even as oil prices rose. US trade deficits:
Feb 2009: $26.0 billion
Jan 2009: $36.9 billion
Jan 2008: $58.2 billion
Trade graph

Posted by ed 2009-04-10 00:43|| 2009-04-10 00:43|| Front Page Top

#2 An anecdote for what it's worth - I have a friend who is a real estate agent, who told me that sales fell off a cliff in 2006 in her area, which is one of the highest income counties in the US (Loudoun VA).

Posted by Cynicism Inc 2009-04-10 08:01|| 2009-04-10 08:01|| Front Page Top

#3 There are many guilty parties. One that gets the usual pass is the destructive nature of socialist laws and economies that drove so many investment dollars out of Europe and into America. It help create an environment that resulted in a 'single point of failure' situation. Notice how much of the AIG bailout went back to European banks. Why were they so heavily invested and exposed in the American market. One is that they can not get a reasonable return in their home environment and two that the US market had more of a guarantee [which the bailouts reaffirmed] than investments in China. Bad economics [investment downturns] at home drove the money towards other venues. Had more money stayed home, the resources to fuel property speculation in the US would have not been available at the level it was and the impact of one major point would have been distributed across a larger field of markets lessening the overall effect.

Posted by Procopius2k 2009-04-10 08:43|| 2009-04-10 08:43|| Front Page Top

#4 Pretty basic. The cost of energy (oil & gas in this case) affects the cost of everything. When the consumer (all those blue collar workers everyone ignores but need to buy their products) have a relatively fixed income and their cost for energy goes up drastically something has to give. When the price of homes are tremendously over inflated for the market as well the bubble bursts even more dramatically.

Posted by tipover 2009-04-10 11:16|| 2009-04-10 11:16|| Front Page Top

23:41 Barbara Skolaut
23:39 Mike N.
23:37 Barbara Skolaut
23:03 Ravi
22:55 Rambler in Virginia
21:54 Charles
21:50 Charles
21:39 Besoeker
21:38 Besoeker
21:28 Deacon Blues
21:26 tu3031
21:26 Besoeker
21:23 Barbara Skolaut
21:20 Barbara Skolaut
21:19 Barbara Skolaut
21:17 JosephMendiola
21:16 Barbara Skolaut
21:15 Barbara Skolaut
21:13 JosephMendiola
21:13 Deacon Blues
21:10 swksvolFF
21:09 Frank G
21:04 Deacon Blues
21:04 JosephMendiola