Financial News

[Balta1701]

CORUS bank in Chicago reportedly going down tonight.

[Cknolls]

CORUS bank in Chicago reportedly going down tonight.

 

 

FLA condos absolutely destroyed them.

[mr_genius]

Better than expected jobless claims, and better than expected imports.

 

Its funny, the market feels its bought too far out into an assumed recovery, but the good news keeps coming, so we just continue to hover where we are. Sort of an odd place to be.

 

The Commerce Department said Thursday that the trade deficit rose 16.3 percent to $32 billion in July, much larger than the $27.4 billion imbalance that economists had expected. It was the largest imbalance since January and the percentage increase was the biggest in more than a decade.

 

ouch.

Edited September 12, 2009 by mr_genius

[southsider2k5]

ouch.

 

Thank you cash for clunkers for reving up Toyoda and Honda's sales.

[mr_genius]

Thank you cash for clunkers for reving up Toyoda and Honda's sales.

 

At least they actually make cars in the US. Much of the rest of the massive trade deficit is a complete bust. Like Obama says, those 7 million jobs lost during the recession are gone forever. Nice leadership.

[southsider2k5]

At least they actually make cars in the US. Much of the rest of the massive trade deficit is a complete bust. Like Obama says, those 7 million jobs lost during the recession are gone forever. Nice leadership.

 

The cash does go out of the country, and does contribute to the trade balance.

[NorthSideSox72]

ouch.

It means Americans are buying more goods again. I'd rather we could manufacture more ourselves, but as far as economic indicators go, that is actually a good one. Its still not as large an imbalance as there was before the recession hit also. The deficit fell massively, in recent periods, because of the recession.

 

[mr_genius]

It means Americans are buying more goods again. I'd rather we could manufacture more ourselves, but as far as economic indicators go, that is actually a good one. Its still not as large an imbalance as there was before the recession hit also. The deficit fell massively, in recent periods, because of the recession.

 

it's a sign that, even if the economy has a slight recovery, it won't be sustainable as the trade deficit will just balloon again. it's not a good sign for long term viability.

[NorthSideSox72]

it's a sign that, even if the economy has a slight recovery, it won't be sustainable as the trade deficit will just balloon again. it's not a good sign for long term viability.

Its not a good sign for the long term viability of manufacturing. I agree there. But as you and I have discussed before, the way to cut into this is to get onto the leading edge on some things, not trying to protect aging industry in state.

 

[Balta1701]

it's a sign that, even if the economy has a slight recovery, it won't be sustainable as the trade deficit will just balloon again. it's not a good sign for long term viability.

There are 2 things that are going to be required for the trade deficit to go down. First, stop using oil. Second, there needs to be a reorganization of the global currency system; eventually China and other places in the developing world are going to no longer be able to prop up the dollar as a method of stimulating their own economies. When that happens, the value of the dollar will fall some relative to those currencies and that will be a huge boost to U.S. manufacturing.

[NorthSideSox72]

There are 2 things that are going to be required for the trade deficit to go down. First, stop using oil. Second, there needs to be a reorganization of the global currency system; eventually China and other places in the developing world are going to no longer be able to prop up the dollar as a method of stimulating their own economies. When that happens, the value of the dollar will fall some relative to those currencies and that will be a huge boost to U.S. manufacturing.

You are right on the oil, but frankly, I think you are out in space on the currency solution.

 

The best two things we can do are get off oil, and get in front of some new technologies, preferably ones that can benefit us a lot here as well, like alt energy.

 

[mr_genius]

Its not a good sign for the long term viability of manufacturing. I agree there. But as you and I have discussed before, the way to cut into this is to get onto the leading edge on some things, not trying to protect aging industry in state.

 

R/D and vast majority of technology services are going overseas as well, it's not just some rusty old factory being replaced playing into the trade deficit. also need to add oil / energy into the mix.

[NorthSideSox72]

R/D and vast majority of technology services are going overseas as well, it's not just some rusty old factory being replaced playing into the trade deficit. also need to add oil / energy into the mix.

That is my point, this is what concerns me.

 

[StrangeSox]

A lot of our masters and PhD candidates in the sciences and engineering in this country are foreign born. I think its over half. They used to stay here, but now their own countries are getting up to grade and many are choosing to return home.

[mr_genius]

A lot of our masters and PhD candidates in the sciences and engineering in this country are foreign born. I think its over half. They used to stay here, but now their own countries are getting up to grade and many are choosing to return home.

 

They'll go where the jobs are at.

[Balta1701]

They'll go where the jobs are at.

And better health care coverage.

[mr_genius]

And better health care coverage.

 

well it'll be cheaper health care, that's for sure

[southsider2k5]

There are 2 things that are going to be required for the trade deficit to go down. First, stop using oil. Second, there needs to be a reorganization of the global currency system; eventually China and other places in the developing world are going to no longer be able to prop up the dollar as a method of stimulating their own economies. When that happens, the value of the dollar will fall some relative to those currencies and that will be a huge boost to U.S. manufacturing.

 

Well that and quit coming up with stimulus plans for the Japanese and Korean economies...

[Balta1701]

Well that and quit coming up with stimulus plans for the Japanese and Korean economies...

So you're saying we should cut back on the tax cuts, which consumers use to purchase goods from whatever, and put more in to developing native industries and green technology? OK.

[kapkomet]

So you're saying we should cut back on the tax cuts, which consumers use to purchase goods from whatever, and put more in to developing native industries and green technology? OK.

[southsider2k5]

So you're saying we should cut back on the tax cuts, which consumers use to purchase goods from whatever, and put more in to developing native industries and green technology? OK.

 

At least that would stay in the USA, after being paid for by USA taxpayers.

[Cknolls]

http://www.nytimes.com/2009/09/16/business...tml?_r=1&hp

 

 

 

SOLD!!!!!!

 

 

 

And the housing crisis was contained in early 2008.

[Balta1701]

http://www.nytimes.com/2009/09/16/business...tml?_r=1&hp

 

 

 

SOLD!!!!!!

 

 

 

And the housing crisis was contained in early 2008.

Technically he's probably right. A 0.5% growth rate after a 5% drop still means that the recession is over.

[Cknolls]

Did you know the Nikkei rallied 20% or more six times (and 50% or more four times) since the secular bear market began in 1990?

 

And yet the index is DOWN 74% since then?

 

 

How many of those were labeled "new bull markets" by the talking heads?

[NorthSideSox72]

Did you know the Nikkei rallied 20% or more six times (and 50% or more four times) since the secular bear market began in 1990?

 

And yet the index is DOWN 74% since then?

 

 

How many of those were labeled "new bull markets" by the talking heads?

Same can be said of any index, and for both ups and downs. What is your point?