So if the economy is so great.......

[hislegacy]

The Republicans had the presidency, House and Senate for 2 years. They rolled back Dodd - Frank.

And the Democrats had the House, and Presidency for two years and did nothing either.

Maybe that is why congress has an approval rating lower than Nancy Pelosi.

Let's face it - neither party has helped.

 

[hislegacy]

You are correct on this one economic indicator - but one of a number doesn't give a whole picture ..

The Title of the thread is

So if the economy is so great.......​

That would be a reference to the economy as a whole, not just one portion of it.

There a number of Economic indicators that are quite strong

21 charts that explain the US economy

Labour market
The strengthening jobs market has been core to the Federal Reserve’s debates on whether to raise interest rates. As the economy approaches full employment, officials believe wage growth will start getting driven up and that inflation could accelerate above the central bank’s 2 per cent target, arguing for rates to be lifted further.

Unemployment rate in August
3.7%

Interest rates
A stronger economy has given the Federal Reserve cover this year to accelerate its pace of interest rate increases. Prior to 2017, the Fed had increased rates only twice over the course of two years.

Federal funds target rate
2.25%
Average 30-yr prime mortgage rate
3.53%

Consumers
As the labour market has strengthened, so has US consumer spending. Wage growth has remained subdued, however. There are few signs of runaway spending growth, with consumers staying in a cautious mood.

Annual change in retail sales in July
3.4%

Where is the US going?
The US economy is expected to continue growing steadily over the next few years, outpacing many other western countries.

About the nowcast
now-casting.com uses statistical modelling to determine what individual economic data points tell us about the rate of growth. The nowcast chart (right) shows the model’s evolving prediction of GDP growth in the current quarter.

Current Q2 2019 nowcast
2.43%


I'm simply saying if you are going to look at the economy as a whole then look at the positive and negative.

The Ole "Obama did it" just doesn't ring true anymore. His loyal followers somehow seem to believe that everything bad that happened in his first seven years as President were the fault of his predecessor and everything good that has happened since he left is because of him.

Simply not based in reality - considering the market, the economy and industry did not react as it has until AFTER the Obama era regulations and guidelines and taxes were removed.

​

 

[FreeinChrist]

And the Democrats had the House, and Presidency for two years and did nothing either.

Maybe that is why congress has an approval rating lower than Nancy Pelosi.

Let's face it - neither party has helped.

That was back in 2009 - 2010 and that is when they passed Dodd - Frank, along with the stimulus and much more.

 

[FreeinChrist]

You are correct on this one economic indicator - but one of a number doesn't give a whole picture ..

The Title of the thread is

So if the economy is so great.......​

That would be a reference to the economy as a whole, not just one portion of it.

There a number of Economic indicators that are quite strong

21 charts that explain the US economy

Labour market
The strengthening jobs market has been core to the Federal Reserve’s debates on whether to raise interest rates. As the economy approaches full employment, officials believe wage growth will start getting driven up and that inflation could accelerate above the central bank’s 2 per cent target, arguing for rates to be lifted further.

Unemployment rate in August
3.7%

Interest rates
A stronger economy has given the Federal Reserve cover this year to accelerate its pace of interest rate increases. Prior to 2017, the Fed had increased rates only twice over the course of two years.

Federal funds target rate
2.25%
Average 30-yr prime mortgage rate
3.53%

Consumers
As the labour market has strengthened, so has US consumer spending. Wage growth has remained subdued, however. There are few signs of runaway spending growth, with consumers staying in a cautious mood.

Annual change in retail sales in July
3.4%

Where is the US going?
The US economy is expected to continue growing steadily over the next few years, outpacing many other western countries.

About the nowcast
now-casting.com uses statistical modelling to determine what individual economic data points tell us about the rate of growth. The nowcast chart (right) shows the model’s evolving prediction of GDP growth in the current quarter.

Current Q2 2019 nowcast
2.43%


I'm simply saying if you are going to look at the economy as a whole then look at the positive and negative.

The Ole "Obama did it" just doesn't ring true anymore. His loyal followers somehow seem to believe that everything bad that happened in his first seven years as President were the fault of his predecessor and everything good that has happened since he left is because of him.

Simply not based in reality - considering the market, the economy and industry did not react as it has until AFTER the Obama era regulations and guidelines and taxes were removed.

​

uh-huh

Look at those charts.
Dollar strength. How many realize that a strong dollar makes our products more expensive globally and decreases sales?

Bonds - it reinforces what I am saying Look at Treasury yields! DOWN.

wages - average wages in 2016 less than in 2008

sales of US homes.... better than 2010, not better than pre 2008

The charts are nice but not all go up to 2019. Many jobs created at low paying. Many who have given up getting a job are not counted in the graph.

In the meantime:
Trump trade war with China has cost 300,000 U.S. jobs, Moody's estimates

• Moody's Analytics estimates that the Trump administration's trade war with China has resulted in 300,000 fewer jobs being created in the U.S.

• That figure could rise to 450,000 by year-end if the dispute continues, according to the economic research firm.

• Economist Mark Zandi said the two countries are playing a "dangerous game of economic chicken."

 

[hislegacy]

wages - average wages in 2016 less than in 2008

And who was President for eight of those years??

 

[hislegacy]

Dollar strength. How many realize that a strong dollar makes our products more expensive globally and decreases sales?

You make a strong dollar sound bad for the people who have the strength.

Are you serious?

 

[DaisyDay]

The Ole "Obama did it" just doesn't ring true anymore. His loyal followers somehow seem to believe that everything bad that happened in his first seven years as President were the fault of his predecessor and everything good that has happened since he left is because of him.

Straw man. Obama did inherit a major recession and two unfunded major wars. The wars, particularly the Iraq war, were attributable to Bush. The recession was global. Obama's main problem was an obstructionist Republican Senate which went so far as to shut the government down and risked the US bond rating (which raised our interest rate which automatically increased our debt payments) rather than compromise with the Democrats.

Poor Donald shut the government down himself during his own term, bragged about it, then, when that proved unpopular at the polls, tried to blame it on the minority Democrats.

 

[FreeinChrist]

You make a strong dollar sound bad for the people who have the strength.

Are you serious?

Yes, I am serious.
Why the strong dollar is so bad for business - CNN

Why is the dollar so strong? Chalk it up to a healthy US economy -- particularly as much of the rest of the world has weakened -- and the Federal Reserve's interest rate hikes. A country's currency tends to go up in tandem with rates.

A strong dollar is bad news for companies that do a lot of business overseas since it hurts the value of their international sales and profits.

It can also hurt large US firms at home because American consumers have more purchasing power and may buy goods from overseas.

Several blue chip consumer companies, including Hasbro, Harley-Davidson, Huggies maker Kimberly-Clark and Gillette owner Procter & Gamble have warned that the dollar is hurting their results. So have industrial companies 3M and Caterpillar (CAT).



​

International Finance: The Dollar and the U.S. Economy

A strong dollar—one that can purchase more foreign currency relative to a weak dollar—means that U.S. consumers pay less for imports. It also means that foreign consumers must pay more for U.S. exports.

A weak dollar—one that can purchase less foreign currency relative to a strong dollar—means that U.S. consumers must pay more for imports from foreign nations. However, foreign consumers will pay less for U.S. goods and services, which will help increase production and employment in America.

​

The Dollar Is Rising. Here’s Why That’s Bad for the Dow.

Unlike stocks, currencies trade in pairs—one against the other—based on factors like interest-rate and growth differences between countries. As a result of Europe’s surprise decision to ease monetary policy, European bond yields have tumbled, and the extra yield an investor gets for buying a U.S. bond instead of a European one has gotten wider. That’s caused the euro to drop 0.7% against the dollar.
​

How a Strong vs. Weak Dollar Affects U.S. Jobs regarding a strong dollar

However, the downside is U.S. companies that sell goods to foreign customers suffer because, relative to a weaker currency, our goods and services cost more. It may mean U.S. producers are at a disadvantage in the global market.


It can lead to manufacturers moving plants to foreign countries with lower costs so that they can remain competitive. In short, a strong dollar can mean jobs lost in the United States.



​

 

[DaisyDay]

And who was President for eight of those years??

There was a Global Recession for many of those years going into his presidency, remember??? Whereas Donald inherited a growing economy, remember???

You make a strong dollar sound bad for the people who have the strength.

Are you serious?

Sure, if you're a tourist or buying stuff, a strong dollar is nice, but if you're a merchant or a manufacturer, not so much. It's a double-edged sword.

 

[Cimorene]

Yes, I am serious.
Why the strong dollar is so bad for business - CNN

Why is the dollar so strong? Chalk it up to a healthy US economy -- particularly as much of the rest of the world has weakened -- and the Federal Reserve's interest rate hikes. A country's currency tends to go up in tandem with rates.

A strong dollar is bad news for companies that do a lot of business overseas since it hurts the value of their international sales and profits.

It can also hurt large US firms at home because American consumers have more purchasing power and may buy goods from overseas.

Several blue chip consumer companies, including Hasbro, Harley-Davidson, Huggies maker Kimberly-Clark and Gillette owner Procter & Gamble have warned that the dollar is hurting their results. So have industrial companies 3M and Caterpillar (CAT).



​

International Finance: The Dollar and the U.S. Economy

A strong dollar—one that can purchase more foreign currency relative to a weak dollar—means that U.S. consumers pay less for imports. It also means that foreign consumers must pay more for U.S. exports.

A weak dollar—one that can purchase less foreign currency relative to a strong dollar—means that U.S. consumers must pay more for imports from foreign nations. However, foreign consumers will pay less for U.S. goods and services, which will help increase production and employment in America.

​

The Dollar Is Rising. Here’s Why That’s Bad for the Dow.

Unlike stocks, currencies trade in pairs—one against the other—based on factors like interest-rate and growth differences between countries. As a result of Europe’s surprise decision to ease monetary policy, European bond yields have tumbled, and the extra yield an investor gets for buying a U.S. bond instead of a European one has gotten wider. That’s caused the euro to drop 0.7% against the dollar.
​

How a Strong vs. Weak Dollar Affects U.S. Jobs regarding a strong dollar

However, the downside is U.S. companies that sell goods to foreign customers suffer because, relative to a weaker currency, our goods and services cost more. It may mean U.S. producers are at a disadvantage in the global market.


It can lead to manufacturers moving plants to foreign countries with lower costs so that they can remain competitive. In short, a strong dollar can mean jobs lost in the United States.



​

This is right. We literally studied this in HS economics.

 

[FreeinChrist]

And who was President for eight of those years??

And what president inherited the Great Recession? I have read plenty that the situation in 2008 was worse than the Great Depression.

I listened to Swiss banker who explained how the money system as we know nearly went down. It has to do with liquidity. Banks tried to maintain a 7 % liquidity and at the worse part of the dive, it got down to 0.7%. 0% would have been the end of the financial world as we know it - 401ks and all. One big thing, like the auto industry going down, would have crashed it all.
Even George W. said "This thing may go down" in reference to the financial world.

During Obama's years, the GDP went up, things got better, there was legislation to prevent issues again in Dodd-Frank, there was the stimulus package, which could have been better but Republicans had a fit about it, and he left the nation in WAY better shape than he got it. Trump inherited a rising economy.
It would have been better had the Republican House worked with Obama rather than obstructed.

 

[klutedavid]

Besides the high corporate bond debt, student debt, individual credit card debt....


This could 'end very badly': Trump officials warn on mortgage finance

The U.S. housing finance system is worse off today than it was on the cusp of the 2008 financial crisis, Republican lawmakers and Trump administration officials warned on Tuesday.

Fannie Mae and Freddie Mac, the two government-controlled enterprises that stand behind half the country's mortgages, are way too undercapitalized, and lending standards have actually deteriorated since the housing crash, the officials said.


“This whole thing is a car wreck. It’s a dumpster fire,” Sen. John Kennedy (R-La.) said at a Senate Banking Committee hearing on the White House’s proposal to overhaul the way the nation finances mortgages.

“We spent $190 billion of taxpayer money, and we’re in worse shape,” he said, referring to the bailout of Fannie Mae and Freddie Mac, which were seized by Treasury a decade ago to stave off catastrophic losses in the crisis.

The hearing kicked off what promises to be a highly contentious debate over the plans released last week by the Departments of Treasury and Housing and Urban Development to scale back the federal government’s massive role in the mortgage market. Republicans are focusing on what they say are growing risks in the system, while Democrats are mostly concerned about providing affordable housing.

​

And if the economy is so great, why is Trump belligerently calling for zero interest rates? Is the economy is doing fine, there is not need to lower interest rates. Doesn't he know that lowering the rates when the economy is good exhausts the Fed's ability to deal with a recession when it comes?

Trashing Fed 'Boneheads,' Trump calls for central bank to cut interest rates to 'ZERO'

President Donald Trump on Wednesday called on the Federal Reserve to slash U.S. interest rates “down to ZERO,” admonishing chairman Jerome Powell and other leaders of the U.S. central bank as “Boneheads.”

“The Federal Reserve should get our interest rates down to ZERO, or less, and we should then start to refinance our debt,” Trump tweeted. “INTEREST COST COULD BE BROUGHT WAY DOWN, while at the same time substantially lengthening the term. We have the great currency, power, and balance sheet.”

​

side note - does he really not know that the US cannot refinance its debt? Doesn't he know it is in Treasury notes and bonds? I wonder if he realizes the US cannot go bankrupt and refinance its debt like Trump did with his businesses.

The problem is not Trump, the problem is not about either political party.

The American economy is not built to compete with economies such as China or India.

The cost of labor in the USA is extremely high.

The cost to industry of labor and resources is extremely high in the USA.

The standard of living in the USA is greatly elevated.

The economy of the USA will fail in the long run as the USA cannot compete. The playing field is not a level one in this global economic game.

Here is an example.

If I owned a company in the USA that manufactured mobile phones. Would I base the factory in the USA or would I locate the factory to a third world country?

Would I use an expensive american labor force or a cheap foreign workforce to manufacture those phones.

Would I pay a fortune to meet legal and environmental legislation during the production of the mobile phones. Or would I manufacture in a country devoid of legal and environmental restraints.

The clock is ticking.

 

[hislegacy]

A strong dollar—one that can purchase more foreign currency relative to a weak dollar—means that U.S. consumers pay less for imports. It also means that foreign consumers must pay more for U.S. exports.

And how is that bad considering how much we import -

And quoting CNN really isn't a good source for just about anything. IMHO

 

[FreeinChrist]

And how is that bad considering how much we import -

And quoting CNN really isn't a good source for just about anything. IMHO

Read up on it.

 

[hislegacy]

Read up on it.

What makes you think I haven't?

I just don't read the same sources as you do. viva le difference!

 

[FreeinChrist]

What makes you think I haven't?

I just don't read the same sources as you do. viva le difference!

Because I haven't seen an actual argument against what I wrote with sources.

Check Fox news.....apparently Trump had wanted the dollar to come down.

 

[FreeinChrist]

I will make it easier for you:
Trump wants a weaker US dollar - here's why

 

[FreeinChrist]

Wall Street tumbles as factory activity hits 10-year low

The S&P 500 and Dow suffered their worst tumbles in over a month on Tuesday after data showed U.S. factory activity shrank in September to its weakest in over a decade, ratcheting up fears that the U.S.-China trade war is hobbling the world’s largest economy.

Investors moved to the safety of U.S. Treasuries after the ISM report showed its manufacturing activity index at 47.8, falling further from August’s sharp contraction and below economists’ expectations of 50.1. A reading below 50 indicates contraction.

​

 

[ananda]

Wall Street tumbles as factory activity hits 10-year low

The S&P 500 and Dow suffered their worst tumbles in over a month on Tuesday after data showed U.S. factory activity shrank in September to its weakest in over a decade, ratcheting up fears that the U.S.-China trade war is hobbling the world’s largest economy.

Investors moved to the safety of U.S. Treasuries after the ISM report showed its manufacturing activity index at 47.8, falling further from August’s sharp contraction and below economists’ expectations of 50.1. A reading below 50 indicates contraction.

​

Good news!

 

[Basil the Great]

Wall Street tumbles as factory activity hits 10-year low

The S&P 500 and Dow suffered their worst tumbles in over a month on Tuesday after data showed U.S. factory activity shrank in September to its weakest in over a decade, ratcheting up fears that the U.S.-China trade war is hobbling the world’s largest economy.

Investors moved to the safety of U.S. Treasuries after the ISM report showed its manufacturing activity index at 47.8, falling further from August’s sharp contraction and below economists’ expectations of 50.1. A reading below 50 indicates contraction.

​

This is not good news for the President or the Republican Senate.