Recession?

[21pro]

...not fully but certain sectors are feeling pain:

obvious sectors that lead the downturn:
Real Estate (global & US) though, Canada expected to outperform vs. world
Mortgage lenders
Banks
Mortgage Insurance
Building and Construction Supply Retailers
Landscaping

but, new figures are showing dropping sales in:
Rental Cars- everyone is going down... very tough.
Travel (leisure and business)
Hotels- ouch! about to feel huge pain, here.
Cruise Lines

However, some improvements made in
Drug Stocks
Forestry (though, still very fragile)

Technology was expected to turn around, but who knows? internet boom2.0 might have to wait until consumer electronics spending begins to escalate.

Retailers made huge gains last week, but don't expect that to last. it was perhaps overbought do to interest rate cuts. It's based on consumer spending also- which is slowing.

funny, but the US downturn resembles the same characteristics as the start of the Japanese 15-year recession that started in the 80s, which also started with housing slowdown and credit problems...

BTW- my business is getting slaughtered in Brampton. I am a large contractor to Magna and am going to be big time affected by the coming slowdowns in the auto sector. In fact Business in Brampton is gonna hurt for quite a while.

 

[a 1 player]

I perfer the term 'Market Correction'.

 

[S.C. Joe]

I am surprise it took as long as it did to happen.

 

[Malibook]

funny, but the US downturn resembles the same characteristics as the start of the Japanese 15-year recession that started in the 80s, which also started with housing slowdown and credit problems...

Is US entering Japan's nightmare?
http://articles.moneycentral.msn.com/Investing/JubaksJournal/IsUSEnteringJapansNightmare.aspx

 

[porn_lover]

Is US entering Japan's nightmare?
http://articles.moneycentral.msn.com/Investing/JubaksJournal/IsUSEnteringJapansNightmare.aspx

I very much think so. Consumer rescession is the worst and do not forget baby boomers are retiring soon.

 

[21pro]

I perfer the term 'Market Correction'.

why a correction? It's expected to be a long term downturn... slow and consistent period of a declining stock market... not an immediate correction with bounce back.

I feel bad for those buying ETF's right now... they are going to lose money.

 

[Gyaos]

Is US entering Japan's nightmare?
http://articles.moneycentral.msn.com/Investing/JubaksJournal/IsUSEnteringJapansNightmare.aspx

I dunno. Everytime I go to Japan, I literally have to hide my gigantic boner when looking at all the Japanese girls. It's quite a different story when I go to the USA.

Gyaos Baltar.

 

[samcan]

Technology was expected to turn around, but who knows? internet boom2.0 might have to wait until consumer electronics spending begins to escalate.

Cant really see this happenning. Most people are happy with there current computers, Vista isnt doing well and people are screaming about internet/cable rates. The only consumer electronics I see selling are HDTVS and upconverting dvd players.

Sorry to hear about your business, Auto sector sucks right now.
Any manufacturing for that matter. Somebody needs to do something about this?

 

[shack]

I prefer, SP generator.

If there's a prolonged downturn in the economy will SP's/agencies lower their rates?

 

[Malibook]

The Fed will lower interest rates as much as needed to push out the cleansing beyond the election.
More bad medicine will make things much worse in the end as this is what the idiot Greenspan did to create the housing bubble in the first place.

 

[cypherpunk]

If there's a prolonged downturn in the economy will SP's/agencies lower their rates?

Like anyone else, they will if they have to. If it gets to that point though, what you'll probably see is an increase in various specials, ranging from reduced introductory rates to month long discounts. This allows SPs to get the current going rate from people who can still afford it while not pricing themselves out of work. If the economy really goes in the toilet though, all bets are off.

 

[Meister]

BTW- my business is getting slaughtered in Brampton. I am a large contractor to Magna and am going to be big time affected by the coming slowdowns in the auto sector. In fact Business in Brampton is gonna hurt for quite a while.

Magna is one of the healthier ones as they always had more cash than other suppliers. Speaking of other suppliers Plastech with 7000 employees filed for bankruptcy.
http://www.bloomberg.com/apps/news?pid=20601103&sid=aYVGQ5l6OISg&refer=us

These f...ing Chrysler guys don't allow price increases from their suppliers even though raw materials are going through the roof. And then when they are finished raping and pillaging the North American suppliers they will go to China to import some Geely crap or whatever it is. Globalism at its best.

 

[Aardvark154]

I dunno. Everytime I go to Japan, I literally have to hide my gigantic boner when looking at all the Japanese girls. It's quite a different story when I go to the USA.

Face it Gyaos, you just plain prefer Asian women

 

[Aardvark154]

I prefer, SP generator.

Assuming that isn't what basicly happens to most of us

 

[21pro]

Magna is one of the healthier ones as they always had more cash than other suppliers. Speaking of other suppliers Plastech with 7000 employees filed for bankruptcy.
http://www.bloomberg.com/apps/news?pid=20601103&sid=aYVGQ5l6OISg&refer=us

These f...ing Chrysler guys don't allow price increases from their suppliers even though raw materials are going through the roof. And then when they are finished raping and pillaging the North American suppliers they will go to China to import some Geely crap or whatever it is. Globalism at its best.

thankfully, my magna contract hasn't been affected... though i have had to layoff a good percentage of my staff and outsource to India. It's coming though... I might have no choice but to move there myself. but, working in brampton, it already ain't much different...

 

[hairyfucker]

I dunno. Everytime I go to Japan, I literally have to hide my gigantic boner when looking at all the Japanese girls. It's quite a different story when I go to the USA.

Gyaos Baltar.

I'm right there with you Gyaos - no homo - the banana girls are the best.

 

[Never Compromised]

The Fed will lower interest rates as much as needed to push out the cleansing beyond the election.
More bad medicine will make things much worse in the end as this is what the idiot Greenspan did to create the housing bubble in the first place.

BINGO

From where I sit, I worry about the return of Stagflation. The extension of credit, the devaluation of the USD, the lack of "real" jobs in the US are all pointing to a very painful correction.

The US simply must stop making so much money available, and running such trade and government deficits.

And Canada needs to diversify its trade partners, or its economy is going to take a huge crap.

 

[Malibook]

'The blue-chip index's point loss is its worst since August as reports of a weakening economy batter stocks and prompt calls for another interest-rate cut from the Fed.'
http://articles.moneycentral.msn.com/Investing/Dispatch/080205markets.aspx

What a joke.
Apparently it is the Fed's mandate to bail out Wall Street.

Real inflation is lowering the standard of living in the US and devastating American savings, that is, for those who even have any.