Economics Thread

thethe said:
Economies arent bound for a downturn. They go in cycles becaude they are triggered by an event. What weakness exists currently that will crash?

There is no dot.com or housing bubble ready to burst.
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Trump not getting re-elected?
 
thethe said:
This has been escalating for decades though.

Only thing on the horizon is unfunded pension obligations. Thats the real scare.
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Asset prices have gotten way out of hand in relation to GDP... all fueled by easy money bubble that is bound to pop.

Will be worse than housing. Not trumps fault. Not Obama's fault. But its gonna happen and it will be ugly.
 
thethe said:
[Tw]1163997812905914368[/tw]

Anyone care to comment?
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That's good news and it's great to see some results from the tariffs.
I was disappointed to see Trump's comments on his talk with Tim Cook a few days ago, saying that changes may have to be made because the tariffs hurt Apple in their competition with Samsung due to Samsung manufacturing in South Korea. I had hoped he at least understood that it's a goal to discourage manufacturing in China for export to the US.
 
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The reconfiguration of the supply chain was always the #1 priority. We simply cant function relying on one nation as much as we do with china.
 
A lot of retailers reporting earnings beats. This means that consumers are spending even more than expected.

How is this happening? Wage growth and tax cuts.

Those rooting for a recession are going to be very dissapointed.
 
Not sure how it’s good news that business are going somewhere more expensive to manufacture while they try to pass on the costs to Americans consumers
 
acesfull86 said:
Not sure how it’s good news that business are going somewhere more expensive to manufacture while they try to pass on the costs to Americans consumers
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Because China will be losing power.

What are some products that have increased in price to consumers?
 
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Found this from a couple of months ago from Goldman Sachs.
 
acesfull86 said:
Not sure how it’s good news that business are going somewhere more expensive to manufacture while they try to pass on the costs to Americans consumers
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I'm assured it isn't, and that economic theory always shows free trade to be the best trade. Along with ignoring things like unethical labor conditions and ecological impact, this also ignores the distribution of monetary resources.
The shareholders will undoubtedly make more in the free trade environment. The employees that go from working in the sevice industry to working in manufacturing will do better in the tariffed environment. I don't know how the correlation between the decline of the middle class and the rise of free trade can be dismissed as coincidental.
 
Jaw said:
I'm assured it isn't, and that economic theory always shows free trade to be the best trade. Along with ignoring things like unethical labor conditions and ecological impact, this also ignores the distribution of monetary resources.
The shareholders will undoubtedly make more in the free trade environment. The employees that go from working in the sevice industry to working in manufacturing will do better in the tariffed environment. I don't know how the correlation between the decline of the middle class and the rise of free trade can be dismissed as coincidental.
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The middle class hasn't declined. It's gotten richer
 
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