Why We're Gloomier Than The Economy

[HisAlways]

In reality....the economy isn't all that bad. But, hearing constantly about high gas and food prices has made us look at nothing else.

http://www.washingtonpost.com/wp-dyn/content/article/2008/06/17/AR2008061702463.html?hpid=topnews

But the reality is different. According to most broad measures of how the economy is doing, it's not all that grim.

Soft? You betcha. In recession? Quite possibly. And a crisis in the financial markets has rattled nerves for months now.

But so far, the economy is holding up better than it did during the last two recessions in 1990 and 2001. Employers haven't shed as many jobs, the unemployment rate is still relatively low, and gross domestic product has kept rising. Things are nowhere near as bad as they were in the Great Depression, or even during the severe recession of 1982-83. The last time consumers were this miserable, in May 1980, the jobless rate was 7.5 percent and inflation was 14.4 percent. Now those numbers are 5.5 percent and 4.2 percent respectively.

Feed the masses "doo doo" long enough, and they'll think it's dinner.:hehee

[Newborn]

Have you read the RBS stock alert in Breaking News?

[jds6958]

In reality....the economy isn't all that bad. But, hearing constantly about high gas and food prices has made us look at nothing else.

http://www.washingtonpost.com/wp-dyn/content/article/2008/06/17/AR2008061702463.html?hpid=topnews



Feed the masses "doo doo" long enough, and they'll think it's dinner.:hehee

Sad, the author is assuming those metric formula's have been stable since 1980...

[firstoftwelve]

this article sounds like Neil Cavuto on Fox... I used to like him, but he seems a little too "pie in the sky" these days...:(

[HisAlways]

Sad, the author is assuming those metric formula's have been stable since 1980...

Where did you see that assumption?

The only thing I saw him say about 1980 was:
The last time consumers were this miserable, in May 1980, the jobless rate was 7.5 percent and inflation was 14.4 percent. Now those numbers are 5.5 percent and 4.2 percent respectively.

[HisAlways]

Have you read the RBS stock alert in Breaking News?

Yea...I saw it. It said "cash is the safe haven"....where others are saying buy gold and silver.

Point being......everyone is saying something different. In reality, I've seen my gasoline and food prices go up, which makes sense. If it costs more to haul the food, the food will go up in price.

Other than that, in reality, we are not in a recession (if you look up the definition) and personally, my life has not changed all that much except in what I mentioned above. So, I cannot attest to all the doom and gloom.

Has anyone been adversely affected lately, other than gas and food prices?:idunno

[sunshine2777]

Nice to see blindness, denial and deception is alive and well in America.:faint:faint:faint:faint

[Biblenuggetlady]

The last time consumers were this miserable, in May 1980, the jobless rate was 7.5 percent and inflation was 14.4 percent. Now those numbers are 5.5 percent and 4.2 percent respectively.

Thing is...BOTH, those with incomes and without jobs, are hurting this time. I remember the Reaganomics and losing my job, but I found another and didn't sweat about how to feed my family at the time. Everything has gone up and I have felt the pinch BIG time these last few mos. It just can't keep going this way. :pray

[BeNotAfraid]

Has anyone been adversely affected lately, other than gas and food prices?:idunno

Is this a joke or sarcasm? Sometimes I'm not really quick to pick that up :idunno

We have a lot of brothers and sisters on RR that are hurting terribly. Many of us are feeling the effects of the economy in some way or another. I'm sure you've read them on here, right?

[jds6958]

Yea...I saw it. It said "cash is the safe haven"....where others are saying buy gold and silver.

Point being......everyone is saying something different. In reality, I've seen my gasoline and food prices go up, which makes sense. If it costs more to haul the food, the food will go up in price.

Other than that, in reality, we are not in a recession (if you look up the definition) and personally, my life has not changed all that much except in what I mentioned above. So, I cannot attest to all the doom and gloom.

Has anyone been adversely affected lately, other than gas and food prices?:idunno

The Weimer Republic in 1923 was not in a recession by definition either when their economy and political party were completely destroyed and had to be rebuilt. The focus on a "recession" is a media distraction.

They are incorrect on the "cash is a safe haven" bias.

I have received PM's/emails from 6 brother's/sister's in Christ this week alone seeking advice on bankruptcies and forclosures. 3 months ago or longer, it was 0 inquiries...

The stock market peaked in 1999.

Average U.S. wage income peaked in 1971.

Oil prices impact the whole economy. It takes about 2 years for the full effects of any price increase to hit the economy. We have barely even seen the impact yet.

The concern is less about now, and more about the near term future. We can not do anything about now, or yesterday, but we can act in preporation for tomorrow. Therefore, discussions regarding today, unless it is an input of predicting tomorrow, is irrelevent.

There were people that were unaffected by the Great Depression as well. We must examine the macro picture. Not everyone will be affected, some will profit.

Just some things to think about that usually helps in matters of perspective and understanding...