Man, We Are So Screwed

Not politically, ... economically. And there's enough blame to go around, along with it being serious enough, to get beyond the political aspects of it for a bit.

NEW YORK, Nov 7(Reuters) - U.S. stocks broke out of their post-election funk on Friday, but on balance, the market hardly delivered a ringing endorsement of Barack Obama's defeat of John McCain to be elected 44th president of the United States.

Whatever the reason, since Election Day, major U.S. indexes are down more than 7 percent. For the Dow Jones industrial average .DJI and Standard & Poor's 500 .SPX, that represents the worst ever conclusion to the week of a presidential election.

Put aside blaming Bush, the Dems in Congress, or the election of Obama for a minute. Because, folks, we are literally screwed. And we have hardly begun to see and feel the impact of it.

It isn't going to make a big difference what anyone does for a while in certain respects. People are going to be hurting across several sectors and the pain isn't going to go away very quickly.

Smart people in business, as opposed to politics, know it. And even then, it takes people who have been in business for a spell to appreciate where we're actually headed.

Trust me, it isn't good.

Many people making their way today never experienced things like Home Mortgage rates being at 18%. For all the wailing, many never experienced a period where there really weren't many good jobs available compared to the number of qualified and even over-qualified people seeking them out.

While it remains impossible to predict just which direction many things are going to go on the finer points, there aren't many reasons to suspect, let alone believe that things aren't going to be bad economically for a while.

I'm all but certain they will be.

 

 

Comments

[jharp]

If your cashing out it's not good.

If you're buying what's the problem? Buy low? Remember that?

For the folks that are finished earning I feel bad for.

However, you gambled and lost. And anyone with any finance knowledge at all could easily see the bloated prices stocks were selling for over the past couple of decades.

And first time home buyers? Great deals abound!

[Scrapiron]

Threatening to bankrupt 50% of the power production in the country was a big help to a fallng economy. Democrat leaders in one coal county in SWVa, where every bite of food on the table is put there by coal,are scratching their heads and trying to figure out why McCain took an always democrat county. Given enough time the democrats will make it possible to vote by paper ballot, by candle light.

[Rick]

I've lived through periods you described. Lived well, had few problems. Of course, I had little debt, was willing to do what was necessary, and had no illusions about anyone helping me out including government. I bought homes during 18% interest times, had to be creative. I've been retired 4 years and I'm not even 60 yet.
Don't whine, face reality, go forward. This is not advise liberals will take.

[Dan Riehl]

"Don't whine, face reality, go forward. "

I'm not whining. I'll be fine. Not everyone's world revolves only around them.

[jharp]

"Don't whine, face reality, go forward. This is not advise liberals will take."

I am one liberal who'd you be wrong about. I'm 48 and remember 18% interest well.

The advice I give my kids. Keep your ass out of debt. Get out there and get to work.

And most importantly. The secret of life.

Spend less than you make.

[Marie LeVeau]

"Spend less than you make." Do you think the young people of today can grasp that concept?? After a few days of unhappiness about where 52% of obama voters want to take the country...i'm now ready to sit back and watch, when it comes, and it's coming fast, just how much Obamavoters are going to like the new world they voted for themselves and us. Bring it on, the taxes, the interest rates, the high gas prices again, the stock market plunge, the envirowhackos, and especially the mandatory volunteer requirements.

[Jake]

"Don't whine, face reality, go forward. "

I'm not whining. I'll be fine. Not everyone's world revolves only around them.

Posted by: Dan Riehl | Friday, November 07, 2008 at 10:28 PM

Good advice no matter what...about no whining, move forward.

Dan, Notice a funny dichotomy in your last line? :)

[jharp]

"Do you think the young people of today can grasp that concept?"

Yeah, I do. In spite of the example George Bush and the republicans have set.

And I know in my very liberal family that my kids understand. As do my brothers and sister and nephews. It is really quite simple.

And by the way, Obama is cutting taxes for the middle class.

And high gas prices? Do you mean over $4 like under George Bush?

And stock market plunges? Do you mean like under George Bush?

[WBestPresidentEver]

President Bush "did not" cause all these problems.
Don't play that game, you cannot back up any of what you are saying and you know it. There is plenty of blame to go around for many and their names are not all President Bush I can assure you of that.

Thank you "President Bush" for being my President and keeping this country safe. You are a decent and moral man.

[Rick]

Glad to note my post has been remarked on.
I told my children repeatedly "It's not how much you earn, it's what you do with it."
Both live in their own homes. Husbands work, wifes care for children. They are in their 20's and can't be called either liberal or conserative.
Oh and they don't live in the Dakotas, Portland Oregon & San Mateo Calif

[jharp]

I told my children repeatedly "It's not how much you earn, it's what you do with it."

Posted by: Rick | Saturday, November 08, 2008 at 12:21 AM

That's good. My kids are younger and I tell them to find a job they enjoy doing and you don't have to "work" another day in your life.

And to preempt the wingnut responses I mean that if you enjoy your job it isn't really work.

[jharp]

"President Bush "did not" cause all these problems."

Maybe not. Maybe so.

But under his leadership all of them happened.

And some other jackass is piping off that the same thing might happen again and it'll be Obama's fault. Wingnut logic?

[WBestPresidentEver]

If Obama has problems and can't get it together you can bet that the MSM will take up for him every step of the way and continue to Bash President Bush and blame it all on him. They want be able to do that forever.
Typical of the left wing media nut cases.
Funny that he messed up today in his very first news conference. Had to call Nancy and apologize. It was Hillary instead, that did what he was referring to. Wonder if he will call her and apoligize also.
Also, I read an article today where he was only calling on his favorite reporters at the news conference and did not let Fox News ask a question of him. Already starting out on the wrong foot. Bring to country together ? I THINK NOT. Once a left winger always a left winger. We will see in the future how his future conferences go.

[Todd]

"President Bush "did not" cause all these problems."
Posted by: WBestPresidentEver | Friday, November 07, 2008 at 11:50 PM
------------------------------
I don't blame George. W. Bush for every economic woe. The fact of the matter is a lot of people are unwilling to take any personal responsibility for their credit card debt, their buying homes that they couldn't afford while putting no money down, and their overall reckless disregard for spending within their means. Those people want to hold everyone else responsible for their problems. People like this have contributed greatly to their own economic demise and it has huge ancillary negative effects on the economy as a whole. I hold them accountable for their actions.

1. George W. Bush has been the president the past 8 years, though, and the economy is in the worst condition since the 1930's. He is personally responsible for the explosion of the national debt, and massive annual budget deficits.

2. George W. Bush's SEC is responsible for giving 5 investment banking firms permission to leverage up to 40x their capital vs 12x prior to 2005, therefore putting risk of systemic failure into the equation of global finance. (http://bigpicture.typepad.com/comments/2008/09/regulatory-exem.html. You can draw a straight line from this reckless deregulation to the meltdown in the markets from this specific action.

I can go on and on, WBPE, but feel free to give me a rebuttal as to what exonerates George W. Bush from bearing ultimate responsibility for those 2 facts leading to our economic demise.

[Fred Beloit]

Turd doesn't seem to understand the responsibilities of the three branches of our government. Perhaps he has just completed a liberal education.
"He[Bush] is personally responsible for the explosion of the national debt, and massive annual budget deficits."

[Todd]

"Turd doesn't seem to understand the responsibilities of the three branches of our government."

Ferd, are you saying the courts are responsible for our national debt and budget deficits? No, I'm sure you're not and implying that it's the Congres that's responsible. They are responsible, too, and from 2001-2006, the Republicans were in full control of Congress.

The budget process begins with a budget submitted to Congress by the President. Congress works with that proposal and returns the budget for the President's approval. Obviously, Ferd you don't "seem to understand the responsibilities of the three branches of our government" and you have an agenda of spreading false propaganda.

Go read this link and learn why Bush is personally responsible for the national debt, having submitted budgets and approving them into law: http://en.wikipedia.org/wiki/United_States_budget_process

[Fred Beloit]

From the Constitution:
" Every order, resolution, or vote to which the concurrence of the Senate and House of Representatives may be necessary (except on a question of adjournment) shall be presented to the President of the United States; and before the same shall take effect, shall be approved by him, or being disapproved by him, shall be repassed by two thirds of the Senate and House of Representatives, according to the rules and limitations prescribed in the case of a bill.
Section 8. The Congress shall have power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States; but all duties, imposts and excises shall be uniform throughout the United States;
To borrow money on the credit of the United States;
To regulate commerce with foreign nations, and among the several states, and with the Indian tribes;
To establish a uniform rule of naturalization, and uniform laws on the subject of bankruptcies throughout the United States;
To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures;..."

Tell us, Turd, what restraints on spending and borrowing have been put in place DURING THE PAST TWO YEARS of the electoral Democraticics' congressional victory? None? Oh, I see.

Bush vetoed almost nothing during his two terms because he was elected as one who wished to work with the opposition party. IMO that was his greatest mistake. Turd, please take special note of this above: "To borrow money on the credit of the United States;..."

[Fred Beloit]

From U.S.News and World Report: "So five years ago, there was one of those rare moments in Washington when the branches and personalities of government—in this case, the Bush administration—are less interested in protecting or expanding their turf than in fixing a looming catastrophe. What was Frank's response to the proposal?

'These two entities—Fannie Mae and Freddie Mac—are not facing any kind of financial crisis," said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. "The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.'

As Frank mentions in his press release today, two years after it was first proposed, the House finally voted on a bill reforming the mortgage giants. Alas, the legislation was watered down to the point of being meaningless—that's why it passed the House with such wide margins (122 Democrats and 209 Republicans). But even then, and despite his high regard for bipartisanship now, Barney Frank wasn't among the yeas."

[Fred Beloit]

Barney Frank testimony at Hearing from September 2003 on an administration proposal to alter the regulation of GSEs like Fannie Mae and Freddie Mac. See Congressman Barney Frank's opening statement, which begins at 4:40. It's rather amusing. Here's an excerpt of his opening statement:
"I want to begin by saying that I am glad to consider the legislation, but I do not think we are facing any kind of a crisis. That is, in my view, the two government sponsored enterprises we are talking about here, Fannie Mae and Freddie Mac, are not in a crisis. We have recently had an accounting problem with Freddie Mac that has led to people being dismissed, as appears to be appropriate. I do not think at this point there is a problem with a threat to the Treasury.

I must say we have an interesting example of self-fulfilling prophecy. Some of the critics of Fannie Mae and Freddie Mac say that the problem is that the Federal Government is obligated to bail out people who might lose money in connection with them. I do not believe that we have any such obligation. And as I said, it is a self-fulfilling prophecy by some people." http://www.taxfoundation.org/blog/show/23617.html

Two points, Turd; (1) Frank says there is no crisis.
(2) Frank says we are under no obligation to bail people out. What a guy. What a perspicacious guy.

How many times do we have to show you people that your case against Bush is a house of cards?

[WBestPresidentEver]

I REPEAT !

President Bush "did not" cause all these problems.
Don't play that game, You Bush bashers cannot back up any of what you are saying and you know it. There is plenty of blame to go around for many and their names are not all President Bush I can assure you of that.

Thank you "President Bush" for being my President and keeping this country safe. You are a decent and moral man.