It's official: We're in a recession.

[KSig RC]

Originally Posted by WarEagle07

WAIT......We're in a recession???? Oh wow! Thank goodness we can rely on the government to make us aware of this situation. Good 'ole government....right on top of things as usual. I should probably start preparing....first I need to find a job since I lost mine last month, I'll sell some stock so I have money for the house payment..oh damn, the stock isn't worth anything. Shoot, how does the government expect me to prepare for a recession with no money and no job? I need a bailout...I'm calling my senator tomorrow asap!

Originally Posted by From the Article:

But the nonpartisan National Bureau of Economic Research, charged with making the call for the history books, waited until now to make it official — and the announcement came on a day when the American stock market fell nearly 9 percent in a single session.

I hate to break up a good rant . . . but . . .

[MysticCat]

Originally Posted by KSig RC

I hate to break up a good rant . . . but . . .

Yep. Not only non-partisan, but non-governmental as well. The National Bureau of Economic Research is a private non-profit.

A good rant wasted.

[LaneSig]

AT&T announced 12,000 layoffs this morning. Merry Christmas and Happy New Year.

[KappaKittyCat]

Originally Posted by SWTXBelle

My ex made a point of stealing my confirmation Bible.

Woah. That's just HARSH.

[WarEagle07]

Originally Posted by MysticCat

Yep. Not only non-partisan, but non-governmental as well. The National Bureau of Economic Research is a private non-profit.

A good rant wasted.

Mea Culpa...I stand corrected.

I would like to run this thought past you all...
Listening to the hearings on CSPAN today, I briefly caught some of the effects that bankruptcy would have on the economy. It occurred to me that a bankruptcy would be the best thing to happen to the foreign auto makers in, well, maybe ever. Cynical me was thinking that the foreign companies probably have lobbyists in D.C. lobbying against a bailout.
What I wanted to run past you all was this: If the big 3 go out of business, wouldn't demand for auto's remain the same? And if so, wouldn't the foreign auto companies, many who have factories here in the US, fill the void thereby creating jobs in the US to keep up with demand? Granted Detroit would be left in the cold since most of these factories are located elsewhere. But do you think that some of the economic damage resulting from a bankruptcy would be mitigated by the foreign companies stepping in to fill the void? It's just a thought, I don't know how viable it is since economics is not anywhere in my sphere of knowledge.

[KSig RC]

Originally Posted by WarEagle07

Listening to the hearings on CSPAN today, I briefly caught some of the effects that bankruptcy would have on the economy. It occurred to me that a bankruptcy would be the best thing to happen to the foreign auto makers in, well, maybe ever. Cynical me was thinking that the foreign companies probably have lobbyists in D.C. lobbying against a bailout.
What I wanted to run past you all was this: If the big 3 go out of business, wouldn't demand for auto's remain the same? And if so, wouldn't the foreign auto companies, many who have factories here in the US, fill the void thereby creating jobs in the US to keep up with demand? Granted Detroit would be left in the cold since most of these factories are located elsewhere. But do you think that some of the economic damage resulting from a bankruptcy would be mitigated by the foreign companies stepping in to fill the void? It's just a thought, I don't know how viable it is since economics is not anywhere in my sphere of knowledge.

I think there are too many external variables to assume this - under the simplest possible supply/demand model of a macroeconomy, you're essentially correct (in that other market players would expand to fill the void) in a general sense.

However, there is no guarantee that it would be cheaper or more efficient to use American workers, build new American plants, etc. rather than producing the cars in, say, Korea or Japan. Additionally, we don't know that demand would stay the same, for a variety of reasons (patriotic purchasing, general economic downturn, etc.), which limits the utility of the concept. Finally, you may be adding a ton of blue-collar jobs, but you're still out many of the other higher-rung positions, so it's an incomplete solution at best (plus, the purchase money flows directly out of the nation anyway).