Unambigously Negative Economic News

[ATeam]

From the New York Times regarding the economy:

"The unemployment rate surged to 5 percent in December as the economy added a meager 18,000 jobs, the smallest monthly increase in four years, the Labor Department reported on Friday.

"Economists viewed the report as the most powerful indication to date that the United States could well be falling into a recessionary downturn. Evidence of widening unemployment heightened anticipation that the Federal Reserve would further cut interest rates this month, perhaps by an unusually large half a percentage point, in a bid to prevent the economy from sliding into the muck.


"'This is unambiguously negative,” said Mark Zandi, chief economist at Moody’s Economy.com. “The economy is on the edge of recession, if we’re not already engulfed in one.'”

An economic slowdown and/or recession generally means slower and tougher times for truckers and carriers. While strategies for successful expediting in recessionary times have been discussed in previous posts in the last six months, some have denied that a recession is coming. The indicators are showing otherwise, more clearly now than ever.

While expediting continues to be a good business opportunity for new expediters and seasoned ones alike, it will be less so for those who try to run a business on credit and have higher debt levels than are prudent.


In other words, for newbies especially, this is not a time to jump in with few cash reserves to get you through slow times that are increasingly likely to come. For people with few cash reserves but in need of a new income-producing activity, driving a fleet owner's truck is a more attractive option, BUT, the need for cash reserves still exists.

 

[dieseldiva]

While the first part of your post leans toward the negative that none of us really want to look at, I think your advice to any potential newbie is right on the money.

Thought I'd get that in there before you get blasted!! LOL

 

[Robsdad]

ATeam: I have always enjoyed and read your post. You are on top of the goings on in the financial world. If one would read these post he could get depressed. I for one read them and follow the advice of my Dad when he was ribbed by his friends for his saving habits and spending restrictions. He always said "the harder I work, the luckier I get". I think that is all any of us can do during these trying times. I read and then I go to work. We will have to work harder for less more than likely. But we cannot sit on our cans and expect it to get better. We as a society have little we can do to rid this country of its mounting debt. We however can be frugal in our spending and pray that our leaders will not tax us to death to cover their sins.
Keepem comin, I'll readem
Robsdad

 

[LDB]

While that isn't the news we'd like to hear it has to be taken in full context. Through December 2007 we've completed 52 consecutive months of job growth, the longest consecutive growth streak since records were kept.

I agree fully with the need for reserves and contingency plans. I merely caution in giving total credence to the mainstream media reports. They have an agenda and a bias and taylor their reports to support them.

 

[greg334]

Yawn, let me be the first to say ok second to say what Leo said. Enough with this.. let us change things and ignore the doom and gloom things that are being reported in the media.

I thought we were in the middle of a credit crisis then a housing crisis and then now an unemployment crisis?

Oh come on with the doom and gloom stuff already, the media has come up with crisis after crisis and for those who understand what the h*ll is going on, know one important fact - all the theories on economics had not applied to this economy and many of the 'experts' have yet to come up with one thing that is solid and provable about it.

Yes we are in a retracted economy, yes some say it is a recession while others say it is just like the late 20's on the road to a depression.

I for one know that the interest rate cuts hurt more than they help, I for one know that Greenspan blames others for problems he has caused by the long and easy ride for the banks who handed out credit to anyone who was breathing and I for one know that if we listen to people like Greenspan and follow their advice to have the government intervene to stop these crisis’s from growing, we will have a serious and most lengthy depression on our hands.

I agree with Robsdad, one way out of this is savings which to me has to be coupled with not making foolish purchases, forgetting about leasing cars and truck and not getting into businesses that are not recession proofed - which this is not.


To add a comment about Leo's statement, yes we have had job creation in the country but we would be a lot better off with a complete change in the tax system from a punitive, costly and ineffective system to something that promotes growth and prosperity. Of course I am takling about the Fair Tax

 

[dieseldiva]

I am having memory problems so I will post it when I get by that problem

They make a special chewing gum for folks with bad memories.....I just can't remember to pick it up when I'm in the store!! OH....................maybe you didn't mean THAT kind of memory. LOL

 

[greg334]

They make a special chewing gum for folks with bad memories.....I just can't remember to pick it up when I'm in the store!! OH....................maybe you didn't mean THAT kind of memory. LOL

I was on another site and for some reason the script it has to make the 'log in' easier makes the computer harder to use so some how when I was trying to fix the problem, I hit the post button instead of finishing my post on EO and it was cut off in mid-paragraph so I posted that little line until I could finish the post.

 

[Turtle]

...Mark Zandi, chief economist at Moody’s Economy.com. “The economy is on the edge of recession, if we’re not already engulfed in one.'”

You'd think he'd know one way or the other. <snort>

 

[greg334]

You'd think he'd know one way or the other. <snort>

See this is the scary part - they don't.

If they did, we would all be trillionaires and the economy would be growing at a record rate without inflation.

 

[bluejaybee]

We as a society have little we can do to rid this country of its mounting debt.
Robsdad

There are things we could do, but I don't see a single person in the up coming election that would be willing to do it with us. And if they would, how many of us could they get to back them. Truckers have the power to get this country's attention if they so desired. How many do you know who would shut down for a week to make a point? We sit back and let the powers to be do it to us because we are too busy and unconnected anymore. It takes little effort to sit here on a computer and complain. And just to let you know before hand, i am guilty of it as the rest.



bjb

 

[greg334]

Truckers have the power to get this country's attention if they so desired. How many do you know who would shut down for a week to make a point?

No no no no.

The question is how many truckers are willing to take the time to register to vote, to vote, to write, call or visit their representative?

I find if they stop crying about the bad conditions they work under and just tell who represents them what they feel like and vote, things would be a lot better.

I don't buy the individual can't do anything about things, they can. The problem in this country is we don't participate in our political process like other countries, we are lazy and complacent to be blunt. many buy into this cr*p that the media is feeding us and we allow things to happen.

Just look at ABC and their 'exclusion' of candidates who didn't meet their requirements. Who is ABC to dictate to the people? If the DNC has a debate, then the DNC should decide who should be on the stage, not an organized press. This actually goes against a lot of ethics and really a few laws but they don't care, the people don't care and it is 1984.

The same goes for all this doom and gloom of all these crisis, it all has to do with people and the lack of responsiblity but the media blames everything else for it.

 

[TwoMotherTrkrs]

Not so simple as it sounds, Greg. LOTS of us are registered, follow up by selecting what we see as the best candidate, vote, contact our representatives and senators AND the White House, then...watch them all do what THEY want instead of the will of the people.

I WANT MY COUNTRY BACK! How do you s'pose we can make that happen?

 

[whitey1]

Gregg,
Didn't I see you on the intersection holding up a Ron Paul sign?

 

[greg334]

Not so simple as it sounds, Greg. LOTS of us are registered, follow up by selecting what we see as the best candidate, vote, contact our representatives and senators AND the White House, then...watch them all do what THEY want instead of the will of the people.

I WANT MY COUNTRY BACK! How do you s'pose we can make that happen?

Sorry to be so unrepentant in my statement but I just don’t agree with the excuses for it not happening and this may be where my misplaced passion is coming from.

Well ok if they don’t listen, why is that?

What do you think causes that apathy for the voters?

I can give you an in-depth analysis about why it happens and what solutions are but I am too tired tonight.

But what I will say is many people just don’t want to make the effort. It is not just writing that gets things done or calling; it is all of them that make the difference. I truly think it is attitude about time, many people don’t want to take the time to do something that will require more work to think later on in life. They would rather play games, play golf or what ever then to take a day out of their lives to meet with someone they entrusted to do a job spending their tax money; you know what I am saying?

Politics is boring to many people because of the life they lead or because they think it is too complicated (it is not), and I don’t blame them in many ways but that is no excuse not to be involved or engaged in a profession like trucking. I know a few truck buddy’s who will not register to vote but they write to kids about how great this country is and complain to us about everything that is happening in DC. I can’t understand how they can make excuses about not enough time to vote or how they feel that their vote don’t count so not to register, but can take the time to write a letter to kids. I tell them to get their head out of the sand and stop making lame excuses; we need people to voice their opinions about issues that directly affect all of us.

Now if you really are looking for an example that shows what I am talking about, here is one – immigration reform. At one time, they were going to push this horrible bill through and the people said no. the catalyst was talk radio but it was the people who said no. With all the protesting going on by the immigrant groups over this, the congress didn’t listen to them, they listen to the threats of their constituents who told them no. Also just to add this, many have made clear comments that they have to find ways to stop this from happening again, maybe they say that because it really is something that they fear?

Also just something else to think about, we have had no senators or congressman recalled in this country for a while. Here in Michigan I would not hesitate to sign a petition to recall Levin or Stabenow but the people here are too dumb to understand why one is needed and it would fail very fast. See these two senators have done nothing for the state, unlike Hillary (and others) who has brought money back to their states, Levin wants to see us out of Iraq and Stabenow is, well useless and we sit here with worst unemployment that some third world countries don't even have. It takes 376,314 signatures to recall Levin and 324,587 to recall Stabenow but many don’t see the how jobs, prosperity and politics are connected, they have a very twisted sense of purpose here.

 

[letzrockexpress]

Tarriffs on imports. plain and simple. Until somebody who can change things comes to the realization that so called "free trade" is ruining our economy, a recession is only a harbinger of disasters to come.We should have listened to Ross Perot way back when....

 

[hedgehog]

Cash/lobbyists Are King

With all due respect(s) to greg334 and others here that think that voting and calling our representatives will affect our political goals and/ideals, I applaud your energy.

One lobbyist with deep pockets will have more influence on our elected officials.

Sadly, our legislative branch has been selling its votes for so many decades that the old saying "Money Talks, **** walks" has never been more accurate.

CASH IS KING !!

Be safe.

P.S. Love this new site. Nice job guys !!

 

[mrgoodtude]

I applaud it as well but can't help but feel the aforementioned actions could be likened to trying to extinguish a California wild fire with a full bladder...
Go ahead let me have it (its ok) but that is the way I feel.
My Apathy is not my lack of interest in things deemed important but more of a sense of helplessness for the way things are..
Wanna have a Boston tea "party" I'm in! Do you want to rally on the steps of Washington with 1 million other angry patriots you got my attention.
Do not however sit back and decide that because I don't push the pen to the paper 10 hours a day that I do not care, (we will never be united with that type of attitude). My time would be better spent sending postcards to families of Rwanda genocide victims apologizing for atrocities I did nothing about.