Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : HOWARD DEAN -THE NEXT PRESIDENT? -- Ignore unavailable to you. Want to Upgrade?

To: Victor Lazlo who wrote (1298)	1/3/2004 12:26:47 AM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 3079

economy to tank again??? Victor this economy hasn't improved. All that has happened is corporate profits have improved through cost cutting. In other words wages are going down. That does not make a boom. People that were laid off in 2001 have not found suitable employment and likely won't in 04.

To: Victor Lazlo who wrote (1298)	1/3/2004 10:08:17 AM
From: AuBug	Read Replies (1) \| Respond to of 3079

It's not what I want but you'd have to be oblivious to economic reality to fail to recognize that the current account deficit is huge and the only possible way to pay it is to print more dollars and hence devalue them which would greatly discourage foreign investors who would be loosing money as the dollar exchange rate drops against them. Also Mr Bush is fiscally irresponsible in the extreme as he's running enormous deficits and doing nothing for the America citizen, unless of course you happen to be employed in the defense industry. The deficits will require selling more and more Treasury bonds to pay it and when supply exceeds demand the price drops and since interest rates are inversely correlated to bond prices interest rates rise. Rising rates will cut off the last great printing press Greenspan has, increasing mortgage debt. Another downside to watch for in the not too distant future is the fact that increasingly mortgages are being issued with little to no equity in the home. When these homes go into default there won't be anybody to bail them out since there's no equity left in the house and one would have to pay above market costs to purchase the home from the owner in default and hence the home will be foreclosed and the lenders will add it to their rapidly growing REO book. The only way they're going to be able to sell it is at a discount and a loss to the lender. As these properties sit in the REO book they're considered a liability since lenders are in the business of lending not carrying real estate. The potential for another S&L-like debacle is at hand. Mr Bush has done irreparable harm to the economy. Mr Bush has sacrificed the future to buy votes in the present. I can't think of anyone less qualified than Mr Bush to be president of the United States of America.