Signs the Economy is Recovering
By bobmnu
@bobmnu (8157)
United States
February 4, 2009 10:43am CST
I was reading an investment newsletter this morning and was surprised, the media has not reported on this, but the sale of existing house is increasing. It is up 6.5%. This is a good sign, it shows that the Free Market works. Congress has not gotten a stimulus package passed yet, but the market is working to correct itself. People are seeing deals in the Housing market and are buying. People who bought over valued homes are losing but that is the way life is. It is called supply and demand. When the price was high the demand was low, now that the prices are coming down people are starting to see a value and the demand is increasing. When the price of the home was getting to the point where people could not afford it the Federal Government lowered the interest rates to make them affordable and this created an artificial boom in the housing market. When the federal government did not allow banks to declare bankruptcy and fail they created another artificial boom. Had the Auto Industry been allowed to go bankrupt they could have restructured and hopefully come out stronger or been finished. People may not remember but there was a 4th car maker in the US many years ago that was allowed to fail, Studebaker, and the other companies became stronger after that.
The good news is the economy is showing signs of recovery without any government help and if the government would stay out it will recover sooner that it will with government help.
1 person likes this
4 responses
@peavey (16936)
• United States
4 Feb 09
I agree with you, although people say I am nuts. Companies change to fit the changing market, and if they can't do that, they fail. That's the way it is. If you try to force them to continue operation, they'll only fail worse. There's a good article about that here: http://www.foxnews.com/story/0,2933,457509,00.html
We shouldn't be surprised that the media isn't reporting the rise in sale of existing houses. That doesn't make good news when they can make more money from their doom and gloom reports.
1 person likes this
@BrianDaniel (256)
• United States
10 Feb 09
I think your analysis is simplistic, but accurate. If we believe in a free market system, we should act that way. But, I don't think our leaders think that way any more. They think like the Europeans, more socialistic.
I actually have seen the media report some positives in the economy.
What is deceiving about that housing report, is that it was positive because the month it was compared to was so negative. That's the think with numbers, they don't always tell the story. My take on that report, from what I saw, was that it was an improvement, but still not a good number.
@bobmnu (8157)
• United States
10 Feb 09
The Europeans are starting to change their thinking. Ireland has eliminated taxes on business and has one of the strongest economies in Europe. France is moving to a small government and more free market principals. As one person commented when traveling to Sweden and he was greeted by a very attractive, well spoken young lady who was working in a government tourist office as a clerk. He commented to her asked why she was working there and her reply was I have a government job. In a socialist economy the best job you can have is a government job because you have the job for life. The free market creates the opportunity to do better and live a better life. America was fonded by people who wanted to improve themselves and not live the same way their parents and grandparents had lived. They wanted a better life. That only comes with hard work and liberty.
1 person likes this
@BrianDaniel (256)
• United States
10 Feb 09
Excellent! Let's keep progressing and make our nation and world better for our kids and grandkids.
@Destiny007 (5805)
• United States
5 Feb 09
You know that and I know that, but the 0bamunist has an agenda which has nothing to do with economies and everything to do with socializing America and Global Governance by the UN.
He needs this crisis to get his anti-American and unconstitutional plans to work.
Now they are talking about fast tracking treaties and passing them as statutes so that they can bypass the Constitution that the 0bamunist hates so much.
@Destiny007 (5805)
• United States
13 Feb 09
The 0bamunist degrades himself.
As far as the creating titles bit.... too bad you wasn't around to see the titles that Bush got.
As far as me respecting him... let that usurper produce his birth certificate that proves he is eligible for the office, and I may reconsider my position and opinion. Until that occurs however... not a chance.
@BrianDaniel (256)
• United States
10 Feb 09
Whether we like President Obama or not, or any other leader for that matter, we should at least respect him (or her) and not show disrespect by creating titles that only degrade.
@Debs_place (10520)
• United States
5 Feb 09
I did hear that, but the remark is that one month might be a blip, not indicating a true recovery. What bugs me is that when the news is bad, it is all you hear, when it we have a good month, the good month becomes an anomaly.
I think if they played up the good month, it might give people confidence and become a self-fulfilling prophecy and maybe a lot of the bad times would be shorter and not as bad.
@bobmnu (8157)
• United States
5 Feb 09
When the unemployment figures came in a couple of months ago and were lower than expected it was bad news. Do you remember wehn the economic news was good for several months the Media had all sorts of experts saying we were in a recession. Interviews with people on the street came back that they were doing fine but from the reports they felt that others were in bad shape. Put the media down as part of the propblem.
