Here comes the recession

[Pflugerville Ag]

The economy is sure looking bleak so far in 2008. The stock market dropped 400pts at the opening bell today! Not good. I would not want to be the next president and have to figure out a way to fix this.

http://money.cnn.com/2008/01/22/markets/markets_0945/index.htm?cnn=yes

[Pumchavas28]

I hate money... I wish it would just go away & everyone is just even & we all work to better ourselves...

But since that wont happen.... I want lot's of it too....:cool:

But your right... the next Pres is gonna really have to role up his sleeves...

[Pflugerville Ag]

IBut your right... the next Pres is gonna really have to role up his sleeves...

Or hers :hiss:

[Pumchavas28]

Or hers :hiss:


I serioulsy hope she doesn't win it again.... :sad:

[DCAggie]

I wouldn't bet against it. (The recession or the election of the hell bitch.) They both might be good in the long run, though. Force the country back to a more conservative position. But I'm just an optimist.

[whatashame]

That is VERY optomistic. At least you look for the good even in something that could be seriously terrible. Lets hope people wake up and make a decision that wont cost us in the future.

[DCAggie]

That is VERY optomistic. At least you look for the good even in something that could be seriously terrible. Lets hope people wake up and make a decision that wont cost us in the future.

Well, I said might. But yeah, I kinda doubt it. But then again, the recession of the late 70s and the failed liberalism of Carter lead to Reagan not too long after Nixon besmirched the Rep name. Maybe history would repeat itself. If there is a recession, and it's short lived, whomever the next president is will get credit. If it's long-lived, then they'll get the blame. So it could work either way.

I'm not an economist, but I think we need a drastic change in the financial and econ policies in this country. But all I hear from Bush, Congress, and the pres candidates is minor short term fixes, so I guess I'm looking for a silver lining.

[CoolaidWade]

I like recessions. I still get paid the same and stocks/mutual funds are collasping. The same 200 bucks I invest in them/paycheck are buying even more shares.

[DCAggie]

Yeah, my paycheck will stay the same, but I do worry about inflation this time around. That being said, I need to start buying land and this might give me a break. Maybe the developers and the other Houston people will back off for a while and the prices will slow down for a bit.

[Mole]

The NYSE Composite index is only down 167 pts. It dropped real quick at the open but has recovered.

[TexAg77]

It's not the President that has to figure out what to do, it's the Congress. The President can make recommendations but the Congress has to draw up the plan. Since it takes anywhere from 6 to 18 months for the seeds of a recession to take root and sprout, guess who was in control of the pursestrings when the seeds of this recession were sown?

However the subprime mortgage fiasco and the fact that banks have been giving unsecured credit to every Tom, Dick, and Harry that wants one has done more to screw up our economy then the govt. has.

[adamrod]

Yeah, my paycheck will stay the same, but I do worry about inflation this time around. That being said, I need to start buying land and this might give me a break. Maybe the developers and the other Houston people will back off for a while and the prices will slow down for a bit.

Unfortunately the developers in Houston have actually started buying more land now that the housing is slowing down (at least the ones I deal with are). They can't make as much money building houses, so they're buying land for future subdivisions (especially very large acerages). You probably won't get a break on the price, but with the interest rate falling, you should be able to save a lot of money on a loan (assuming you're not paying cash).

[Pflugerville Ag]

The mortgage issue is what bugs me the most. I see no reason that the government (and my taxes) should be used to bail out dumbasses that got in over their head and bought a house that they couldn't afford. That is their fault, not mine.

[whitelightnin_23]

I hate how the gov't bails out companies with a poor business model (airlines, mortgages, etc)...

[TexAgFromCal]

I agree to a point with the mortgages. The issue is when their dumbassery (is that a word) starts affecting the entire economy. At that point something must be done. I just wish tattooing STUPID on their foreheads would simultaneously fix the problem and cost us very little.

[Thisjeffguy07]

I agree to a point with the mortgages. The issue is when their dumbassery (is that a word) starts affecting the entire economy. At that point something must be done. I just wish tattooing STUPID on their foreheads would simultaneously fix the problem and cost us very little.

tattoos are pretty expensive!!! and we're talking about a lot of people :laugh::laugh::laugh:

[TwelfthAG]

Unfortunately the developers in Houston have actually started buying more land now that the housing is slowing down (at least the ones I deal with are). They can't make as much money building houses, so they're buying land for future subdivisions (especially very large acerages). You probably won't get a break on the price, but with the interest rate falling, you should be able to save a lot of money on a loan (assuming you're not paying cash).


You're a Civil Engineerin in Houston (me too) ? Who do you work for?

[whitelightnin_23]

we've made a love connection!!!

eff you match.com!!! ;)

[Pflugerville Ag]

I agree to a point with the mortgages. The issue is when their dumbassery (is that a word) starts affecting the entire economy. At that point something must be done. I just wish tattooing STUPID on their foreheads would simultaneously fix the problem and cost us very little.

How about this? Anyone who is bailed out of their variable rate mortgage b/c of their stupidity must agree to wear a flourescent yellow shirt every weekend that says, "I am a dumbass that couldn't pay my mortgage. Thank you responsible Americans for using your hard earned tax money to save my ass."

[TexAgFromCal]

yeah, but you couldn't enforce the people wearing shirts. The tatoos should be paid for with the money they are saving on their new government subsidized mortgage.

[DCAggie]

It's not the President that has to figure out what to do, it's the Congress. The President can make recommendations but the Congress has to draw up the plan. Since it takes anywhere from 6 to 18 months for the seeds of a recession to take root and sprout, guess who was in control of the pursestrings when the seeds of this recession were sown?



Thanks, it's been awhile since I took civics. ;)

My complaint wasn't that the President hasn't done anything, it was that I disagree w/ his recommendation, along w/ that of his buddies at the other end of PA Ave.

Also, I think that the problems go beyond what has happened in a year and a half. What policies have the Democrats in Congress put into place in that time period that caused this?

[DCAggie]

Unfortunately the developers in Houston have actually started buying more land now that the housing is slowing down (at least the ones I deal with are). They can't make as much money building houses, so they're buying land for future subdivisions (especially very large acerages). You probably won't get a break on the price, but with the interest rate falling, you should be able to save a lot of money on a loan (assuming you're not paying cash).

Good point. Sadly, I know you're right. I just like to get my hopes up that people will stop moving to my town. In the end, any large acreage I buy would be further out for the reason you mentioned and others. I'd still like to have a small tract closer to home. For now, all my family has in close to town are cotton fields on the highway--not exactly scenic or fun. Oh well.

[TexAgFromCal]

Take a look back through the 20th century and tell me when a time of great growth wasn't followed by a recession (large or small). That is pretty much the way the economy works.

A sustained term of growth leads to speculation which increases the rate of growth beyond a reasonable rate in the stock market.

Subsequently that excessive rate of growth is eventually uncovered and the stock market jumps back.

The last time this happened it was due to over speculation in the Dot -com sector. This time it seems to be in the housing sector.

Either way there is little that is done by the government to change the pattern of the economy. However, the feds can regulate (to a point) the magnitude of the swings in the economy.

Everyone just needs to be happy that we aren't in the late 70's early 80's when the Governments reaction to this process was to balloon interest rates to close to 20% AND raise taxes.

My parents bought a hose in 1978 in LA and were paying something like 17% interest even though they put almost 50% down. Now they are paying less than 6% fixed.

[TexAgFromCal]

For now, all my family has in close to town are cotton fields on the highway--not exactly scenic or fun. Oh well.

May not be either of those but if they are close enough now they will make a killing in the next growth cycle.

[DCAggie]

May not be either of those but if they are close enough now they will make a killing in the next growth cycle.

Haha, may be true.

[Conan]

It's going to take some time to rebound. The stock market should have gone down a while ago. The DOW is still too high to represent actuality. Sadly...