Comments on Fund My Mutual Fund: Where will all the Automotive and Airline Workers ...

sdk, and just look at today's news. Unemployment ...

2008-06-06T09:37:00.000-04:00

sdk, and just look at today's news. Unemployment rate with the largest 1 month jump up in the last 12 years. Eventually even the gov. reports start to show the true economic troubles we are currently facing.

sdk, your question is sort of funny because if you...

2008-06-05T14:12:00.000-04:00

sdk, your question is sort of funny because if you look almost anywhere but government reports you see very obvious signs both factual and anecdotal

here is an example

more and more people are simply asking for cash at weddings since they are strapped, instead of traditional gifts.

http://tinyurl.com/69dv45

Please realize the median income in America is something like $17.75/hour or equivalent of $37K a year. That is the median. Which means half of America lives below that wage.

Most mutual fund investors are living a different life than many in this country live. I am just trying to give some commentary about how the "other half live" - people who would never have the means to even consider a mutual fund investment. Or stocks. They are busy worrying about putting food on the table. I'd ask anyone who doubts the stresses in the system to take their salary and reduce it to $37K a year and put the rest of the money into a savings account and not touch it; I'd argue the great majority wouldn't last 3 months. $37K is PRE taxes as well...

most people are "financing" their lives in America as the cost of living has outpaced their wages for a decade now; and it's accelerating (inflation in things we need) now.

First, retail sales are an interesting beast. Sto...

2008-06-05T13:26:00.000-04:00

First, retail sales are an interesting beast. Stores like Wal-Mart and Costco are boosting sales by just lowering prices on things like food (people have to eat). I didn't read the retail sales report yesterday, but I saw a blurb that said they weren't as low as they thought there were going to be. That's a far cry from strong. You have stores like JC Penny down 4.4%, GAP down 14%, etc...

Second, you have to believe the validity of any of these gov. reports. I know this can sound conspiracy theorish, but when the gov. can release reports that say there is no month over month gas price increase something is amiss. Same goes for employment figures (or inflation). Job cuts in May rose to the highest levels in 2 years, but we somehow are adding 40k jobs in the private sector? Huh?

I'm not normally a doom and gloom person, but I know people who haven't worked in a long time. I know other people who are selling things (boats, cars) in order to keep their house. And I'm personally concerned about my job as I watch my company blindly cut costs.

shax,harsh man. harsh!

2008-06-05T13:22:00.000-04:00

shax,

harsh man. harsh!

**shouldn't I ask what we are going to do with the...

2008-06-05T13:21:00.000-04:00

**shouldn't I ask what we are going to do with these people?**

Dont we have a shortage of organic fertilizer?

show me what stores are suprisingly strongWalmart ...

2008-06-05T13:19:00.000-04:00

show me what stores are suprisingly strong

Walmart Costco etc

other than those discount guys

Target is more of the "middle America" and its negative

and again, same store sales does not account for inflation. If food prices go up by X%, and your same store sales go up by the same X% then unit sales are flat

So in theory if food prices are up 7-10% and same store sales are up 3-4%, that means sales are falling in unit terms

As for job numbers look at continuing claims... highest level since 2004. After you are on unemployment for a while you lose benefits and then fall off the rolls. So both the weekly claims show you as not part of the claims, and the unemployment rate no longer shows you employed

If you really research how the numbers are created in most of the government reports you can see the reality behind the numbers.

Or simply go talk to the average human making $40K a year and ask him how life is going.

p.s. what deep recession? people are saying there is no recession at all. You need to have a shallow recession before you even reach the deep recession yes?

This will be a regional/sector recession. If you are a port worker or farmer or miner or work in energy - you are booming. No recession. If you are in other sectors of the economy - you are in depression (housing, auto, financial, airline) and then some fall in between.

This will take time to play out - people are impatient. We were "expanding" 3 quarters ago, it is not like things turn on a dime - the US economy is like a huge ship...

The job cuts of latter 2007 and 1st half of 2008 have not even begun to filter through the economy. And State budgets need to be balanced this year with far lower revenue bases, so that will lead cuts there into 2009. Etc.

Gonna take time for this all to be played out. Be patient.

May Retail sales were suprisingly strong. How do ...

2008-06-05T13:00:00.000-04:00

May Retail sales were suprisingly strong. How do you explain that? And to be honest, the "recession" just isn't showing up in the numbers yet--be it earnings (aside from financials), jobs numbers, retail sales, GDP, ISM numbers, etc. Obviously some of these numbers aren't great, but taken together they don't indicate the "deep" recessionary conditions that people have been calling for. Not even close. What gives?