Comments on: Are We In a Recession or a Depression? http://www.onlineforextrading.com/blog/recession-or-depression/ Learn about Online Forex Trading Thu, 04 Feb 2010 18:53:39 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: Pay Lay Ale http://www.onlineforextrading.com/blog/recession-or-depression/comment-page-1/#comment-24604 Pay Lay Ale Fri, 29 Jan 2010 09:00:10 +0000 http://www.onlineforextrading.com/blog/?p=1345#comment-24604 You need to compare apples to apples here. Comparing U3 unemployment to traditional unemployment is not an apples to apples comparison. U6 is a better measure. There's at least 17.3% unemployment. The only reason that we don't have soup lines yet is unemployment benefits, food stamps, SSI, etc. When the government runs out of OPM (other people's money), watch out. GDP doesn't look so bad, but you need to look deeper into the numbers. GDP = private consumption + gross investment + government spending + net exports Which of those have changed drastically, and what does it tell us about the real (non-financial) private sector economy? Subtract a couple of trillion from government spending and you have a really nasty GDP decrease. "Witness the obesity problem in the US. I could go on, with fashion, pimped rides, and bling coming into play." Which was all paid for with DEBT. Public and private debt is completely out of control. Credit bubbles are what created the Great Depression and the current depression. You need to compare apples to apples here. Comparing U3 unemployment to traditional unemployment is not an apples to apples comparison. U6 is a better measure. There’s at least 17.3% unemployment.

The only reason that we don’t have soup lines yet is unemployment benefits, food stamps, SSI, etc. When the government runs out of OPM (other people’s money), watch out.

GDP doesn’t look so bad, but you need to look deeper into the numbers.

GDP = private consumption + gross investment + government spending + net exports

Which of those have changed drastically, and what does it tell us about the real (non-financial) private sector economy? Subtract a couple of trillion from government spending and you have a really nasty GDP decrease.

“Witness the obesity problem in the US. I could go on, with fashion, pimped rides, and bling coming into play.”

Which was all paid for with DEBT. Public and private debt is completely out of control. Credit bubbles are what created the Great Depression and the current depression.

]]> By: Unemployment Spurs Higher Oil Prices | OnlineForexTrading.com http://www.onlineforextrading.com/blog/recession-or-depression/comment-page-1/#comment-7878 Unemployment Spurs Higher Oil Prices | OnlineForexTrading.com Fri, 05 Jun 2009 16:55:47 +0000 http://www.onlineforextrading.com/blog/?p=1345#comment-7878 [...] In a market where mixed signals generate strong upturns in equity markets, a better than expected non-farm payroll report was greeted with strong global support.  In some quarters, analysts even began to wonder if the improving non-payroll report signaled that the recession was ending. [...] [...] In a market where mixed signals generate strong upturns in equity markets, a better than expected non-farm payroll report was greeted with strong global support.  In some quarters, analysts even began to wonder if the improving non-payroll report signaled that the recession was ending. [...]

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