Economy

[hurleyjd]

Is the booming economy being financed on credit and deficit spending. I have no answer for this but I see every car dealer in my area with a lot of cars to sell both new and used. Every tractor dealer in my area has a lot full of equipment. Are people not buying or cannot buy because off being in so much debt. Oil exploration has slowed down. Halliburton and Schlumberger both or curtailing buying new fracking equipment and not refurbishing their old. Their plans is to focus on off shore drilling. I know that my spending this year will be less than 2019. Any thoughts?

 

[CG1]

I have no idea and not much to add but we had our best year in business ever last year. We sell steel, mainly to oil and gas companies. Most of the projects that ended up being put on hold in 2016-2017 came back to life this last year and it was a great year for us to be in business. Best year in 40 years! Both revenue and profit. I have also seen significant increases in my real estate investments over the last year here in BC, Canada. And as we have all discussed, my investments in stocks, RRSPs (Canadian 401k) etc., have done remarkable.

I was also wondering where you have been. Maybe I missed them but hadn't seen one of your posts in awhile!

 

[callmefence]

Typical election year.

 

[Bigfoot]

All I can add is, that the economy is booming, but it doesn't seem to be helping me.

 

[shaz]

My understanding is that the government is not doing quantitative easing if that's what you're asking?

 

[Lucky]

I would say overall the economy is definitely better. Here's the deal though, to really see the benefits of a good economy you need to live in an area that people try to better themselves from it. I live in an area that things never really change for the average person because they don't try to take advantage of the good times.

 

[hurleyjd]

My understanding is that the government is not doing quantitative easing if that's what you're asking?

I just read this article on QE and still do not understand it. Is it where the Central bank buys assets from local banks so there will be money loaned again and again. What do you think the assets are of a bank may be mortgages, auto loans operating loans I really have a hard time understanding this.

https://www.investopedia.com/articles/economics/10/quantitative-easing.asp

 

[TennesseeTuxedo]

Get out more Hurley. Middle Tennessee is on fire with growth. I was in Austin not long ago, crazy busy area. Dallas is booming as is Houston (home office for the company I'm with).

I travel all over and I see tons of construction projects and help wanted signs in every town I visit.

 

[sstterry]

I would say overall the economy is definitely better. Here's the deal though, to really see the benefits of a good economy you need to live in an area that people try to better themselves from it. I live in an area that things never really change for the average person because they don't try to take advantage of the good times.

Doing better as opposed to what. Since Obama since the Recovery Act 11 years ago, the US has been on the biggest economic boom in its history. But, there has been tons of deficit spending in those years. The stock market is not a good indicator of how an economy is doing, wage growth is one thing to look at also. To be fair, we do have one of the lowest rates of unemployment in history but this to has been falling for 11 years.

 

[shaz]

Yeah, the stock market may not be a great indicator but corporate earnings are looking pretty good this season. One of the main drivers for the market is lack of yield anywhere else.

 

[shaz]

I would say overall the economy is definitely better. Here's the deal though, to really see the benefits of a good economy you need to live in an area that people try to better themselves from it. I live in an area that things never really change for the average person because they don't try to take advantage of the good times.

Doing better as opposed to what. Since Obama since the Recovery Act 11 years ago, the US has been on the biggest economic boom in its history. But, there has been tons of deficit spending in those years. The stock market is not a good indicator of how an economy is doing, wage growth is one thing to look at also. To be fair, we do have one of the lowest rates of unemployment in history but this to has been falling for 11 years.

What's causing the deficit spending? :hide: Is it mostly Social Security and Medicare? I don't think we spend as much % of the GDP on defense as we used to.

 

[sstterry]

I would say overall the economy is definitely better. Here's the deal though, to really see the benefits of a good economy you need to live in an area that people try to better themselves from it. I live in an area that things never really change for the average person because they don't try to take advantage of the good times.

Doing better as opposed to what. Since Obama since the Recovery Act 11 years ago, the US has been on the biggest economic boom in its history. But, there has been tons of deficit spending in those years. The stock market is not a good indicator of how an economy is doing, wage growth is one thing to look at also. To be fair, we do have one of the lowest rates of unemployment in history but this to has been falling for 11 years.

What's causing the deficit spending? :hide: Is it mostly Social Security and Medicare? I don't think we spend as much % of the GDP on defense as we used to.

This gets complicated. Had the powers that be left the Social Security Trust fund alone and not raided it beginning in the 60's (both parties), it would be in great shape. But now, there is essentially no trust fund at all. It is pretty much pay as you go.

Last year we had a massive tax cut. This, of course, led to more deficit spending. The farm bailout bill (because of the China problem) is now one of the biggest in history. Congress and those in Washington like to spend like drunken sailors. How long has it been since we had a real budget? Every 6 months congress is having to raise the debt ceiling. The last administration that had a reduction in deficit spending was Clinton. Trump has proposed cutting SS and Medicare benefits, but that has not gotten much air time. But that won't solve the problem.

 

[herofan]

All I can add is, that the economy is booming, but it doesn't seem to be helping me.

I'm not complaining, but I agree. If one indicator is wages, I guess some careers just aren't affected much by the economy. It really doesn't show up one way or the other with my teaching salary. It may be booming, but my salary isn't any different, and my cattle checks haven't skyrocketed in the last few years.

 

[Bestoutwest]

I have been told by a couple people who work in banks that a good way to tell if the economy is doing well is to keep track of the number of credit card offers you get, and what the rates are. The more offers you get with the better the rate, the worse the economy is doing.

That being said, I'm getting offers almost daily with 0% balance transfers or little to no interest. It is my belief that it's very inflated.

 

[Lucky]

I would say overall the economy is definitely better. Here's the deal though, to really see the benefits of a good economy you need to live in an area that people try to better themselves from it. I live in an area that things never really change for the average person because they don't try to take advantage of the good times.

Doing better as opposed to what. Since Obama since the Recovery Act 11 years ago, the US has been on the biggest economic boom in its history. But, there has been tons of deficit spending in those years. The stock market is not a good indicator of how an economy is doing, wage growth is one thing to look at also. To be fair, we do have one of the lowest rates of unemployment in history but this to has been falling for 11 years.

I don't look at the stock market as an indicator of how the economy is doing, I'm just not smart enough to figure it out. The money I have in stocks is doing good though. I look at the amount of money people are spending and the construction going on in places I go. When Obama was in office my business was just flat. Once Trump got elected things picked up again. The problem in my area is 75% of the people wouldn't walk across the street to make $75 an hour. This makes it hard for me to gain from the better economy.

I know several folks that have different types of businesses and they all say they could easily expand if they could find reliable help, expansion wasn't happening around here under Obama. Trump has hurt the cattle business though. The trade deal needed to happen but it's definitely hurting.

 

[Stocker Steve]

There has been some real progress in parts of the economy, and much of this is technology based. But in general - - we are using deficits and passive investing to create spending money. We are getting away with this currently because interest rates are very very low and dropping.

 

[kenny thomas]

We have seen nothing of an improved economy. Obama killed the coal industry and a company owned by the governor of West Virginia finished off the support industry. Jobs are very rare here.
And now many in the logging business are in bad trouble. Logs aren't bringing the cost of getting them out and to the sawmill.

 

[ccr]

Things seem to be booming around here. New construction all over the county, along with help wanted signs at many businesses.

What's causing the deficit spending? :hide: Is it mostly Social Security and Medicare? I don't think we spend as much % of the GDP on defense as we used to.

Shaz, Social Security and Medicare are not causing deficit spending, but rather wasteful spending by the Dept of Defense and other departments, foreign aid, interest on the debt, and other spending not needed. Rand Paul has some good examples of wasteful spending.

Trump has proposed cutting SS and Medicare benefits, but that has not gotten much air time. But that won't solve the problem.

Terry, where have you seen that Trump has proposed cutting SS and Medicare benefits. Are there quotes from him or his administration you are referring to?

 

[hurleyjd]

https://www.factcheck.org/2017/09/obamas-final-numbers/

 

[Brute 23]

We have seen nothing of an improved economy. Obama killed the coal industry and a company owned by the governor of West Virginia finished off the support industry. Jobs are very rare here.
And now many in the logging business are in bad trouble. Logs aren't bringing the cost of getting them out and to the sawmill.

I'm no Obama fan but the economics of coal killed coal and no one is bringing it back. It's the Blockbuster of the energy sector.