Quote:
Originally Posted by scubadiver626
Fear and greed. The financial bomb almost hit the banks and Wall street, but didn't.
Debt is huge but that stimulus was abolutely necessary. What happens after its gone remains to be seen.
Major indicators continue to improve, GDP, Core CPI, Treasury yields, PE Ratios, unemployment and the Long term trend is still up. Nevertheless, we are still in a recession. Your fear is understandable.
When market writers and investors all think the market is going up, thats the time to think about selling. And when everyone thinks the sky is falling, buy.
Until then it's a mixed bag. However, you cant deny the power of this rally since last March.
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Yes, the stimulus was a good thing even though it increased national debt, it supported the financial powers that be. Without them = total socio-economic collapse. However it failed on 2 major fronts and that is it has done nothing to improve the infrastructure which is in a serious state if degradation and it has completely failed to generate jobs on any level only, at best slowing the growth of unemployment. One of the problems, probably the biggest, with the American economy is that we have moved almost all manufacturing over seas.
Manufacturing was the largest producer of 'middle class' jobs that kept the economic engine running. Give people money to spend and they will spend it. With the money being moved outside of the US by US Corporations they work against a strong healthy US economy. The divide between those with great wealth and the poor becomes wider and wider. Couple that with the apathy rampant in US society and you have a country of people who see no way out, think there is no way out and they are powerless to act on their own behalf
it is not liberal or conservative, republican or democratic, it is ugly and as long as though those who speak out are called unpatriotic it is a slow cycle that America can't escape. I don't have a crystal ball but I feel that the United States 20 years from now would be unrecognizable to those of us alive today who witnessed the slow demise of the middle class since the 1980s
spaz