Author: gotohell

USA 2008: The Great Depression [Copy link] 中文

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Post time 2008-5-27 07:33:56 |Display all floors
I am laughing!

Is China Daily serious? They highlighted this garbage!

Look, China Daily, the US is no jeopardy, finacially or otherwise! gotohell is an expert at nothing! The power brokers own the money machines! The recession ploy is for their friends to buy-up some losers, is all!

It is a war-time economy, with unlimited credits! Of course, I realize, you are in awe of the little Scotsman.

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Post time 2008-5-27 07:38:19 |Display all floors
Warren Buffet -- buy coke and McDonald's! Promote addiction, fat and diabetes! Yeah!

He is buying!

It is a buyer's market and he has all the cash -- promoting fear and loathing serves his interests! Buy, Buy, Buy! Watch him, if you don't believe me! He sure as H ain't buying-up food stores to put-up in his basement for the coming disaster! He can just head-out to MickeyD's with his lifetime food credit card!


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Post time 2008-6-8 04:41:34 |Display all floors
Americans $1.7 trillion poorer

NEW YORK ( -- Americans saw their net worth decline by $1.7 trillion in the first quarter - the biggest drop since 2002 - as declines in home values and the stock market ravaged their holdings.

Meanwhile, the amount of equity people have in their homes fell to 46.2%, the lowest level on record.

The net worth of U.S. households fell 3% to $56 trillion at the end of March, according to the Federal Reserve's flow of funds report, which was released Thursday.

The value of real estate assets owned by households and non-profits declined by $305 billion, while financial assets fell by $1.3 trillion, led mainly by a $556 billion drop in stocks and a $400 billion decline in mutual funds.

The first quarter's decline follows a $530 billion drop in wealth in the fourth quarter of 2007. Until then, net worth had been rising steadily since 2003, climbing nearly 31% over those five years. During the bear market of 2000 through 2002, household's net worth dropped 6.2%.
Spending more

The recent declines, however, may not affect consumer spending, said Michael Englund, senior economist with Action Economics. Americans have actually spent more in recent months, particularly at the gas pump as fuel prices soared.

Americans "are spending everything in their wallet and borrowing more," Englund said. "But because the pump takes so much more of their dollars, they are buying fewer T-shirts."

Still, as people feel begin to feel poorer, the growth in consumer spending may slow, said Scott Hoyt, senior director of consumer economics at Moody's

"When wealth goes down, consumers will cut back some," he said. "There will be a drag on spending."

Household debt grew by 3.5% in the first quarter, down from 6.1% in the fourth quarter. The growth of home mortgage debt, including home equity loans, cooled to an annual rate of 3%, less than half the pace of 2007. Consumer credit, which includes credit cards, rose at an annual rate of 5.75%, the same as the 2007 pace.

The fact that consumers continue to borrow against their homes, even as they decline in value, shows how troubled Americans are.

"It signals how consumers are struggling to get cash," Hoyt said.

The Fed's report comes at a time of growing anxiety about the nation's economic health. Many economists believe the country is already in a recession, if not headed toward one.

In the first four months of the year, employers cut 260,000 jobs, and on Friday the government is expected to report an additional 60,000 losses in May. Gross domestic product rose at a sluggish annual rate of 0.9% in the first three months of the year, when adjusted for inflation.

Whether household wealth will be up or down at the close of 2008 depends more heavily on the stock market's performance than on housing values, since financial assets account for about two-thirds of net worth. Because the stock market has been rising in recent months, Englund is expecting a 6% gain in net worth for the second quarter.

As for the year?

"The jury is really still out," said Englund, adding that wealth could end up flat for 2008.

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Post time 2008-6-9 15:23:35 |Display all floors
More Americans in US to rely on free food

Is the USA's free lunch compliments from the World of Nations over!?

MONROE (Georgia)/DOUGLAS (Arizona) - IN the richest nation on earth, a rising number of people line up for free food because they are struggling to put meals on the table at home.

Demand at food banks in the United States is up 15 per cent to 20 per cent over last year and many food banks are having difficulty coping, according to America's Second Harvest, the largest United States food bank provider with 200 in its network.

Food bank networks procure nonperishable and fresh produce from suppliers, then stock it in warehouses before distributing it via a chain of community food banks across the country.

The total number of people who use them is not known but the upward trend is one sign of a US economic downturn in which soaring fuel costs and the rising price of other basic goods have pushed many people on low incomes or without jobs into hardship.

The banks say more people with steady jobs are turning up at their centers to wait in line, fill out forms and collect rations of free or reduced-price food. In a parallel development demand for government food stamps is also rising.

'Having a (low wage) job isn't enough anymore. Having two or three jobs isn't enough anymore,' said Ms Marcia Paulson, spokesman for Great Plains Food Bank in North Dakota, where nearly half the households receiving food stamp benefits have one or more working adults.

Ms Olga Medina's story illustrates the dilemma for many on low wages who said they considered their need to resort to free food a humiliation in a country that prides itself on independence and stresses work as a sure route to success.

Ms Medina works full time providing homecare for old people in Douglas, on Arizona's border with Mexico. She said she earns US$1,100 (S$1,500) a month with which she also supports her parents and a sick son, but is unable to make ends meet due to rising food and fuel costs.

Most weeks she forages for milk, fruit and vegetables in dumpsters outside the Safeway supermarket. One day last month she waited in line with 147 others outside the Douglas Area Food Bank for a grocery handout because she had no bread.

'We have to put up with a lot of humiliation just to survive,' she said, putting on a pair of sunglasses to hide tears. 'It's not dignified but we are hungry and hunger is ugly.'

Providing food

At a giant warehouse in Monroe, Georgia, scores of volunteers and paid workers using fork lifts or pallet jacks load food onto big trucks - everything from carrots to frozen spare ribs to canned goods.

The warehouse is part of Angel Food Ministries, a national organisation headquartered in Monroe that offers food at half price to people who need it. A typical food pack contains US$60 of family groceries and is sold for US$30.

The organisation, which is linked to a church, purchases food in bulk at a discount and passes the savings on to 500,000 families a month who use its service in 35 states, distributing through a network of churches.

Its founder, Mr Joseph Wingo, argued that perceptions that the US economy was doing better than is reported failed to take into account a different reality for millions of Americans, not least senior citizens.

'Go into any community that has been devastated by job losses and you will find there's more people (struggling to provide food) than you think,' said Mr Wingo, who set up the organisation in response to demand in Monroe.

Broken dreams

For Ms Selena Lewis, 28, who owns a boutique in Alpharetta, Georgia, going to the North Atlanta Community Food Bank brings an added irony - just last year she donated some of her money to the bank as an act of charity.

But the downturn has stifled demand at her boutique and some days she makes just a single sale, not enough to pay off debts and feed herself and her son and leading to a dilemma about whether to close the boutique and seek other work.

'I don't want to give up on my dream because the hardest thing to do is to start,' said Ms Lewis who said she gave up a high-paying corporate marketing job to start the boutique.

Her story illustrates how small business owners are caught up in the downturn, but problems exist at the other end of the spectrum of age and opportunity.

Standing in line at the Douglas food bank was Ms Brenda Salazar, a neatly dressed woman of retirement age, who worked for 25 years as a nursing assistant in the city.

Now disabled, she receives US$944 a month in benefits and food stamps, but after paying rent, utilities and gassing up her car, she had just US$16 for food to tide her over.

'I bought a gallon of milk, I bought a bag of green onions and a bag of grapes. It was US$17. It was three items .... Now I have to pray that God will put gas in my car.' -- REUTERS

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Post time 2008-6-9 15:26:33 |Display all floors
Originally posted by buddy35 at 2008-6-9 15:23
More Americans in US to rely on free food

Is the USA's free lunch compliments from the World of Nations over!?

MONROE (Georgia)/DOUGLAS (Arizona) - IN the richest natio ...

such news don't n't it???......

God save amerika

Now go to your polls to decide
What's on your mind now........ooooooooooooooo la la....Kind Regards

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Post time 2008-6-9 15:27:12 |Display all floors
Originally posted by interesting at 2008-5-26 05:36
Buffet is foolish, apparently, as the economy has already shown signs of improvement and so the Great Moderation continues.

he is a billionaire.............& who are u to tell him
What's on your mind now........ooooooooooooooo la la....Kind Regards

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Post time 2008-7-16 23:31:22 |Display all floors
POLL: Economic Expectations Now Their Lowest in 27 Years

Seventy-Eight Percent of Americans Say the Economy's Getting Worse
Analysis by Scott F. Clement

July 15, 2008—

The day George W. Bush called a news conference intended to shore up economic confidence, a new ABC News survey finds pessimism about the economy's direction its highest in 27 years of polls.

Seventy-eight percent of Americans now say the economy's getting worse, the most in polls that first asked the question in March 1981. It was 77 percent in May, tying a record that had stood since fall 1990, in the midst of the 1990-91 recession.

Even as Bush spoke Tuesday morning, calling the economy basically sound, Fed Chairman Ben Bernanke gave a gloomier report to Congress, warning of inflation and a continued slowdown. Their appearances followed federal moves to rescue mortgage giants Fannie Mae and Freddie Mac and to seize the California lender IndyMac.

While those developments are new, sour consumer views aren't. Expectations have been bleak since late last year, with more than six in 10 Americans saying the economy's getting worse for nine months straight, an unprecedented streak of pessimism. Negative expectations are almost double their average, 40 percent, in polls since 1981.

On the flipside, optimism's been in a similar rut; for five months straight just 4 percent or fewer have said the economy's getting better.

The mortgage and banking sectors' troubles pile on top of the main irritant to consumer views, $4-plus gasoline. A separate ABC News/Washington Post poll this week found that just two in 10 Americans rate themselves as "very secure" financially, two-thirds report at least some stress as a result of their financial situation and for one in four it's "major" stress.

INDEX  Separately, ABC's Consumer Comfort Index, based on views of current economic conditions (rather than expectations), stands at -41 on its scale of +100 to -100, up from its record low, -51, in late May, but stuck at or below -40 for 13 consecutive weeks. That compares to a 22-year average for the index of -10.

The index is based on current ratings of the economy, buying climate and personal finances. Only 14 percent rate the national economy positively, and it's been at or below 15 percent for 14 weeks straight, the longest period since a year-long stretch following the 1990-91 recession.

Twenty-three percent rate the buying climate positively, below 25 percent for 14 weeks and just 4 points off the all-time low hit twice in May.

Fifty-two percent rate their personal finances positively, historically the CCI's strongest component. It's down 6 points on the year, and 5 points below the long-term average.

TREND  The CCI dropped a remarkable 31 points from the start of the year to a record low, -51, in late May; since then it's crept up but failed to break out of the -40s. It's still a far cry from its average, -10, much less its high, +38 in January 2000.

GROUPS  As usual the CCI is higher in better-off groups, though it's negative across the board. It's -4 among higher-income Americans while -74 among those with the lowest incomes, -34 among those who've been to college while -66 among high-school dropouts, -38 among whites but -68 among blacks.

Regional differences are stark: The CCI is best in the West, -27, and worst in the Northeast, -52. In the Midwest it's -42, in the South, -43

And sharp partisan differences remain: The index is -18 among Republicans, but -39 among independents and -55 among Democrats.

Here's a closer look at the three components of the ABC News CCI:

NATIONAL ECONOMY  Fourteen percent of Americans rate the economy as excellent or good; it was 15 percent last week. The highest was 80 percent on Jan. 16, 2000. The lowest was 7 percent in late 1991 and early 1992.

PERSONAL FINANCES  Fifty-two percent say their own finances are excellent or good; it was 51 percent last week. The best was 70 percent, last reached in January 2000. The worst was 72 percent on March 14, 1993.

BUYING CLIMATE  Twenty-three percent say it's an excellent or good time to buy things, the same as last week. The best was 57 percent on Jan. 16, 2000; the worst, 19 percent, May 11 and 18 this year.

METHODOLOGY  Interviews for the ABC News Consumer Comfort Index are reported in a four-week rolling average. This week's results are based on telephone interviews among a random national sample of 1,000 adults in the four weeks ending July 13, 2008. The results have a 3-point error margin. The expectations question was asked of 500 respondents June 29-July 13, 2008; that result has a 4.5-point error margin. Field work by ICR-International Communications Research of Media, Pa.

The index is derived by subtracting the negative response to each index question from the positive response to that question. The three resulting numbers are added and divided by three. The index can range from +100 (everyone positive on all three measures) to -100 (all negative on all three measures). The survey began in December 1985.

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