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Thread: No Jobs But People Are Spending
04-07-2010, 08:05 PM #1
No Jobs But People Are Spending
The one of many retail companys that just reported blowout numbers,Bed Bath & Beyond.As I post this the stock is up over 4% in after hour trading,and should drive the retail sector higher.My point is BBBY sells stuff you dont really need,just like Best Buy,Sears,and Nike.Makes me think how can this happen with 9.7 unemployed.All above had great numbers top and bottom.
04-07-2010, 08:16 PM #2
That's how recoveries happen. Consumer spending (retail sales) has to rise before employers start hiring again. Jobs are always on the tail end of a recovery.
There are signs of some recovery, but I'm still concerned about falling back into recession because of the crap coming out of Washington.
04-07-2010, 08:25 PM #3
Say you have 10% unemployment where you used to have 5% unemployment.
Before you had 95% spending. For a while people were cutting back on spending because they did not know if they would loose their job. Well things are looking better so the 90% are now picking things up a bit.
Not a surprise.
Not 100% accurate might help explain things.
04-07-2010, 08:28 PM #4"Time to nut up or shut up!" Tallahassee - Zombieland
04-07-2010, 08:30 PM #5
04-07-2010, 08:36 PM #6
04-07-2010, 08:57 PM #7Professional Member
- Join Date
- Aug 2006
Still want to bet the market when 3 to 4 trillion is sitting on the sidelines.
Stop looking at the figure head and look to the "head" behind the figure.
04-07-2010, 09:10 PM #8Professional Member
- Join Date
- Feb 2008
The stock market is a poor indicator of how well an economy is moving along. Right now another stock bubble is forming, it is a classic pump and dump trying to lure retail investors into the markets. One day soon, the stock market will crash again and all the major brokers will have their money on the short side. Think of all the extra cash the governments of the world have printed in the last couple of years, it has to go somewhere and right now it is going into stocks. Some stocks are up 200-300% from their lows, does that even make sense?
Inflation is on its way, and trouble is brewing if they have raise interest rates to calm inflationary pressures. Imagine all the people who are on the margins with their mortgages, then they wake up and their rates are no longer 4-6% they are 12-20%. That is going to be a troublesome time. Or on the flip side you have deflation, which is equally disasterous.
04-07-2010, 09:41 PM #9
We are in just about the same position as we were in 1993.The differance now is Housing,more unemployment,and the deficet.It is now in The goverments hands.If they do right we will be good to go for at least 5 years.As far as the stock market goes,wall street will be pacient for a time.There is no other place to put your money,what is the CD rate 1.25%
04-07-2010, 09:54 PM #10
04-07-2010, 09:54 PM #11
I still feel the economy is going to drop further with unemployment going higher.
I believe that this new spending of which you speak is more about the beginning of the summer & tax return time, when people are starting to be able to get out more...so just for something to do, many will shop.But I'll bet their shopping with credit cards, not cash....IOW: this is just a short-term increase.
I think we will KNOW by the end of summer, August, Sept., if the recovery is really on or it is just a figment of the governments temporary employment & tax credits....
I believe it will temporary...
But saying that, my business is booming right now...We've got more work than I want right now....so I hope it is the real thing & not temporary...but I fear the worse...
RichardLets get H.I.G.H. http://www.theletsgethigh.com
Honesty, Integrity, Gallantry, Honor
04-08-2010, 02:34 PM #12"Time to nut up or shut up!" Tallahassee - Zombieland
04-08-2010, 02:55 PM #13
Housing is picking up. I can drive around my little town and count 40-50 new home going up, one is one the street I live on and the lot has been vacant for 8 years.
I got a new boat.