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Unemployment up to 9.2 percent. Ugly economic news.

Discussion in 'Sports and News' started by The Big Ragu, Jul 8, 2011.

Page 4 of 26
  1. YankeeFan

    YankeeFan Well-Known Member

    I don't really get this complaint.

    What would you have them do with this money? Should they build a new factory in a bad economy? Should they hire more workers to produce inventory they can't sell?

    Maybe if everybody spent, it would get things going. But confidence plays a huge role in the economy. And no one wants to go first.

    If these companies go out and spend this money now, they won't have it when the economy improves. They might not even be around when the economy improves.
     
    YankeeFan, Jul 8, 2011
    #37
  2. YankeeFan

    YankeeFan Well-Known Member

    S&P - 17.42 as he takes to the podium, Dow - 140.54.
     
    YankeeFan, Jul 8, 2011
    #38
  3. The Big Ragu

    The Big Ragu Moderator Staff Member

    He's killing me right now. Fuck.

    And worse, it is a Friday in July. Come noon, there is no rally. Everyone is heading home.
     
    The Big Ragu, Jul 8, 2011
    #39
  4. YankeeFan

    YankeeFan Well-Known Member

    I don't mean to suggest any conspiracy. I don't think they manipulated the numbers to use them as a hammer.

    I just figure he'll use them to go on the offense as opposed to being defensive about it.
     
    YankeeFan, Jul 8, 2011
    #40
  5. YankeeFan

    YankeeFan Well-Known Member

    Apropos of nothing, but is this the grayest his hair has ever looked.

    The Presidency is a tough job.
     
    YankeeFan, Jul 8, 2011
    #41
  6. LongTimeListener

    LongTimeListener Well-Known Member

    When you don't quote the central statement in that whole thread string -- Ragu's "We funneled money that the market would have allocated to potentially productive areas of the economy that could have stimulated a recovery" -- then, yeah, it would be hard to understand the answer. But as the banking crisis also showed, corporations are just going to sit on money, they aren't going to invest it back into the economy in any meaningful way, so any conjecture about how much better they could do allocating that money is severely misguided.
     
    LongTimeListener, Jul 8, 2011
    #42
  7. YankeeFan

    YankeeFan Well-Known Member

    MArkets didn't move one way or the other during his statement. Almost exactly in the same place.
     
    YankeeFan, Jul 8, 2011
    #43
  8. YankeeFan

    YankeeFan Well-Known Member

    They "aren't going to invest it back into the economy" if they think they won't get a return on it. Would you?

    If they spend the money and don't get a return, more people will be put out of work.
     
    YankeeFan, Jul 8, 2011
    #44
  9. LongTimeListener

    LongTimeListener Well-Known Member

    I agree with that. However, TigerVols was replying to the argument that if the stimulus money had gone into corporate coffers, it WOULD have gone back into the economy in a more useful way.
     
    LongTimeListener, Jul 8, 2011
    #45
  10. Herbert Anchovy

    Herbert Anchovy Active Member

    Nobody made him run.
     
    Herbert Anchovy, Jul 8, 2011
    #46
  11. TigerVols

    TigerVols Well-Known Member

    Nor is he complaining about it.
     
    TigerVols, Jul 8, 2011
    #47
  12. The Big Ragu

    The Big Ragu Moderator Staff Member

    If a corporation is in business to make money, it is not going to sit on piles of cash if they can put their money to work in more productive ways.

    WHENEVER there is a depressed economy, businesses cut back on building plants, buying equipment and hiring. It has nothing to do with how much cash they have on hand. Why would anyone in their right mind expand their capacity to produce more goods when they aren't selling enough to use the capacity they already have?

    They will spend when the economy picks up, at which point demand will have picked up.

    Supply and demand. Supply and demand.

    Personal consumption comprises about 70 percent of our GDP. And people aren't spending.

    In that environment, why would companies be investing in creating more inventory, when they aren't selling at the capacity they are already at?
     
    The Big Ragu, Jul 8, 2011
    #48
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