Announcement

Collapse
No announcement yet.

Are we headed for a depression?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • #31
    Re: Are we headed for a depression?

    At least 10,000 people being laid off by two major corporations. Not posting exact numbers, in a rush here but A.T. & T. laying off approx. 4,000 and the rest by Citicorp? Citigroup lost over 5 BILLION in the first 3mos. of this year.

    Oil, corn and rice at record levels. Did the dollar hit yet another historical low this last week? I think I saw a blip about it next to oil's new high, just days ago.

    Arrivals to the islands down approx. 14%. Hmmm....
    Stop being lost in thought where our problems thrive.~

    Comment


    • #32
      Re: Are we headed for a depression? As if that were all we had to worry about!

      It's a race to the bottom between the flips - toxic CO2 levels in the oceans, or this way too top heavy country/government's certain collapse, to see which catastrophy brings us to our knees first. But, maybe the 'new 9-11' will beat them to the punch and set up the perfect storm that finishes us off.

      After all, 2012 is right around the corner..., so, let's party like it's 2999!
      https://www.facebook.com/Bobby-Ingan...5875444640256/

      Comment


      • #33
        Re: Are we headed for a depression?

        The most likely thing to bring more of us to our knees, proverbially and literally? Oil hitting 170 or so dollars a barrel, heck 150 and not going below it again may do it.

        2012? LOL Dec. 12, 2012....ya think the Mayans were onto something?
        Stop being lost in thought where our problems thrive.~

        Comment


        • #34
          Re: Are we headed for a depression?

          Good grief! Citibank, tha nation's oldest and/or largest bank....in huge trouble and now the nation's Second largest bank.. These types of reports are so regular this year that I wonder if some of us are, or will becoming/become immune to them. Sheesh....


          "Bank of America Net Income Falls 77% on Writedowns (Update7)

          By David Mildenberg

          April 21 (Bloomberg) -- Bank of America Corp., the second- largest U.S. bank, said profit dropped for a third straight quarter as the company set aside $6.01 billion for bad loans.

          First-quarter net income declined 77 percent to $1.21 billion from $5.26 billion a year earlier, the Charlotte, North Carolina-based bank said today in a statement. The results fell short of analysts' estimates and sent the bank's stock down 2.5 percent in New York trading."
          Stop being lost in thought where our problems thrive.~

          Comment


          • #35
            Re: Are we headed for a depression?

            I'm getting the feeling that much of the nation's wealth was being made by playing with money rather then from goods and services.

            But in leveraging money to make money, as it starts to fail it amplifies the loss just as it had amplified the gains.

            Comment


            • #36
              Re: Are we headed for a depression?

              California was one of the hardest hit states for home foreclosures in '07. This has been very well documented in last year's and this year's news. Now?

              Reports in that this poor state's foreclosure rate is up 327% From LAST YEAR! Good (edited sort of expletive.)... grief! that's huge....and going to get even worse??

              Are other states that much worse than they already were last year? Dunno....yet.
              Stop being lost in thought where our problems thrive.~

              Comment


              • #37
                Re: Are we headed for a depression?

                Would edit my previous post if the program would allow, and add this....

                "AP
                Gas prices rise further above $3.50, while oil nears $120

                Tuesday April 22, 6:47 pm ET
                By John Wilen, AP Business Writer
                Gas prices push further above $3.50 a gallon, while oil nears $120 on weaker dollar


                NEW YORK (AP) -- Gas and oil prices pushed further into record high territory Tuesday, with retail gas reaching a national average of $3.51 for the first time and crude nearing $120 as the dollar fell to a new low against the euro."
                Stop being lost in thought where our problems thrive.~

                Comment


                • #38
                  Re: Are we headed for a depression?

                  That 'ole cliche "and the beat goes on" comes to mind....dayum....


                  "AP
                  Delta, Northwest report combined $10.5B loss on fuel costs

                  Wednesday April 23, 10:18 am ET
                  By Harry R. Weber, AP Business Writer
                  Delta posts $6.4 billion loss, Northwest loses $4.1 billion on soaring fuel prices


                  ATLANTA (AP) -- Delta Air Lines Inc., the nation's third-largest carrier, said Wednesday its loss widened in the first quarter to a whopping $6.39 billion because of soaring fuel prices and the steep decline in the company's market value.

                  Northwest Airlines, which will be acquired by Delta to create the world's largest airline, reported a $4.1 billion loss in the first quarter.

                  Delta's results badly missed Wall Street expectations, despite a 12 percent increase in sales."
                  Stop being lost in thought where our problems thrive.~

                  Comment


                  • #39
                    Re: Are we headed for a depression?

                    IF...we are headed for Depression then maybe it's going to be a very slow journey, and definitely not escalate until after the elections. However, bummer is that there's more news of major retailers laying off employees, etc.

                    This time it's Home Depot..."It is the first time the world's largest home improvement store chain has ever closed a flagship store for performance reasons. The move, to be completed within the next two months, will affect 1,300 employees."

                    Entire story here....

                    http://biz.yahoo.com/ap/080501/home_...ings.html?.v=2

                    *********************************
                    Starbucks Earnings Sink 21%

                    By LAURIE J. FLYNN
                    SAN FRANCISCO — Starbucks, faced with a sharp drop-off in customers, reported on Wednesday that earnings declined 21 percent during the second quarter.

                    http://www.nytimes.com/2008/05/01/bu...nt&oref=slogin
                    ********************************


                    Gulf States May End Dollar Pegs, Kuwait Minister Says (Update4)

                    By Fiona MacDonald and Matthew Brown

                    May 1 (Bloomberg) -- Gulf states are considering dropping their pegs to the dollar after the U.S. currency's decline stoked inflation across the region, Kuwaiti Finance Minister Mustafa al- Shimali said.

                    ``Yes, there are some'' Gulf Cooperation Council states considering dropping their pegs to the dollar, which has fallen 13 percent against the euro in the last 12 months, al-Shimali said in an interview in Kuwait late yesterday without naming the countries. ``Some countries will do what we are doing.''


                    http://www.bloomberg.com/apps/news?p...efer=worldwide
                    Stop being lost in thought where our problems thrive.~

                    Comment


                    • #40
                      Re: Are we headed for a depression?

                      Wow that's too bad for Home Depot, good thing Hawaii isn't affected as the Iwilei store has been ranked as between the #1 and #3 most profitable store in the nation.

                      $11-million markdowns. That means when a product cannot be sold for it's retail price. Typically it's because the product is either inactive (stock no longer being reordered), repaired (product sold, returned and repaired), or returned (customer bought the wrong item but due to packaging or missing accessories it can't be sold as new).

                      BUT markdowns also include shrink (asset loss) due to inaccurate inventory accounting and receiving, theft (both internal and external), and general merchandise damage.

                      There's others but to me the one of the biggest markdown's occur when a customer buys a product, uses it and returns it. This drives the cost of the goods up and reduces order inventory. Bottom line is this kind of unscrupulous customer practices make it harder on the store and customer. The only ones that get away with it are those doing it. They have no concious or shame.

                      People like that go to hell, and that's the only consolation I can muster up to upset associates that see this kind of blatant disregard for integrity.
                      Life is what you make of it...so please read the instructions carefully.

                      Comment


                      • #41
                        Re: Are we headed for a depression?

                        Originally posted by craigwatanabe View Post
                        People like that go to hell, and that's the only consolation I can muster up to upset associates that see this kind of blatant disregard for integrity.
                        Now, now. Take it easy. They certainly deserve a head-slap... Well, maybe a couple of head slaps, but Hell is eternal.

                        In this case, you've got to include medical insurance and workman's comp fraud, unisured motorist, and people with loud mufflers to hide the fact they have a small... *Da-Kine*!

                        Comment


                        • #42
                          Re: Are we headed for a depression?

                          Okay, just for starters - Yes, financial institutions are writing down CDOs and SIVs and it appears they have huge losses. However, they are doing this because of a fairly recent requirement to 'mark to market' those assets each quarter. Since the market has dried up for those assets, the price they can garner in the market is lower than any realistic valuation. When the market regains liquidity, those 'paper markdowns' will be marked back up to a valuation which better reflects their worth and those markups will look like profits, just as the markdowns currently look like losses. Yes, the drying up of 'easy money' (liar loans and adjustable 'teaser' rates) for mortgages has caused housing prices to slump and losses to be incurred, but the 'end-result' losses will be much smaller than the markdowns taken on a quarterly basis. By lowering interest rates, the Fed has attempted to lower the adjustable rate increases and moderate the foreclosure rate. The sky is not falling, far from it. The economy has slowed, but it has yet to stall or shrink (although it may - but that wouldn't be an unusual event). Don't worry, be happy.

                          On the other hand, long term shareholders of the 'troubled' institutions are getting cheated because stipulated reserve requirements have forced the institutions to seek equity capital at bargain basement prices, letting the new equity rake in the future gains of those 'marked to market' assets as they swing back to a realistic valuation. That's why they're so eager to put up stakes (at ridiculously low prices). No one cried foul when foreign entities 'bailed' them out, but when Warren Buffet made his offer to Ambac it was rebuffed as unadulturated greed on his part (which, of course, it is for all foreign and domestic 'saviors' in this 'crisis').
                          Last edited by salmoned; May 2, 2008, 05:11 PM. Reason: clarity
                          May I always be found beneath your contempt.

                          Comment


                          • #43
                            Re: Are we headed for a depression?

                            I looked up this thread earlier today, and reread it. It's amazing to read what we were pondering this many months ago. To read the names of companies that were in deep trouble even back then, some of which aren't on the current radar screen by name. WaMu had gotten an infusion of Billions earlier this year and still were in the news recently, again.

                            Most of the people I am hearing from believe it's straight past Recession and into a Depression, or they just get quiet and prefer to not talk about "the unthinkable."

                            I'm glad the folks on this island mainly pull together and we'll all be fine. I just can't help but wonder how this is all going to play out, in detail. To say this is humbling is an understatement, it's absolutely mindboggling listening to the news reports.

                            God bless every person here, sincerely. Hoping your gardens grow tall and green and that the bees return next year.
                            Stop being lost in thought where our problems thrive.~

                            Comment


                            • #44
                              Re: Are we headed for a depression?

                              Originally posted by Karen View Post
                              Most of the people I am hearing from believe it's straight past Recession and into a Depression,
                              We are not a depression. There is a definition for depressions and I don't have time to give you a link right now. But we are NOT in a depression. We are in the midst of a recession. Most economists say that we will not experience a depression like the 1930's because of checks and balances we have today that were not available in 1930. For example the following three safeguards will prevent a depression.

                              1. Unemployment insurance
                              2. Social Security
                              3. FDIC insurance on bank deposits up to $100K (or I guess it is $250K now)

                              So not to worry. Just be financially conservative for the time being - and always - and you will be fine.

                              monomanomonuia (good luck)
                              Peace, Love, and Local Grindz

                              People who form FIRM opinions with so little knowledge only pretend to be open-minded. They select their facts like food from a buffet. David R. Dow

                              Comment


                              • #45
                                Re: Are we headed for a depression?

                                Originally posted by matapule View Post
                                We are not a depression. There is a definition for depressions and I don't have time to give you a link right now. But we are NOT in a depression. We are in the midst of a recession. Most economists say that we will not experience a depression like the 1930's because of checks and balances we have today that were not available in 1930. For example the following three safeguards will prevent a depression.

                                1. Unemployment insurance
                                2. Social Security
                                3. FDIC insurance on bank deposits up to $100K (or I guess it is $250K now)

                                So not to worry. Just be financially conservative for the time being - and always - and you will be fine.

                                monomanomonuia (good luck)
                                I'm not understanding your reasoning here. What assurance do you have that any insurance company can make good on their promises? Who's gonna insure the insurance companies? AIG provides insurance and look what happened to them? And what good is social security? Where do you think social security monies come from? At any rate, most of us aren't even qualified to receive it.

                                The notion that a depression can't happen is completely false. In fact we are even more vulnerable today for the following reasons:

                                This was taken from a transcript of an interview done with the world reknown trends expert Gerald Celente that was printed on September 15, 2008:

                                "We’re going into the worst depression that any living person has ever seen. It’s going to be worse than the Great Depression of 1929 and I’ll give you a some reasons why.
                                1) In the 1929 Depression, not many people owned homes, so they weren’t carrying that heavy mortgage load. The people who did have homes did not have something called ‘home equity loans,’ which is more money owed on top of the other money. They used to have something else back then called a ‘second mortgage.’ If you had one, you were a loser.
                                2) Back in the 1929 Depression days, people didn’t have things called ‘credit cards.’
                                3) The United States didn’t have $14 trillion worth of debt.
                                4) We still had a manufacturing base in the United States so that when WWII broke out and the economy improved afterwards, we were still able to produce more so than any other country in the world. But now, the U. S. off-shores so much manufacturing now.
                                5) Back in the Great Depression of 1929, the U. S. government was not $14 trillion in debt and they had a trade surplus, not a trade deficit.
                                6) We weren’t fighting two wars that have sapped already $2 trillion from our American treasury and it’s getting worse."
                                You can read the entire transcript here, which provides compelling reasons to be aware of the coming depression: http://www.earthfiles.com/news.php?I...ry=Environment

                                I'll also add that Celente warns that interest rates will spike soon after the November election. It has to in order to save the falling dollar. We're in a damned if you do, damned if you don't situation.

                                Comment

                                Working...
                                X