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/biz/ - Business & Finance

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460571 No.460571 [Reply] [Original]

Healthy reminder that the US ecomomy is rotten at its core.

>Middle class buying power, the driving force behind the economy, has been eroded by falling earnings and increased prices
>The middles class has compensated by taking on large amounts of debt, but this source of money is nearly tapped out
>The stock market is massively overvalued from the Fed buying bonds in QE
>US financial markets have turned into a circlejerk of entities with large amounts of capital making up money out of thin air without providing any useful goods or services
>The only "real" segment of the economy that's experiencing growth is the technology/ web services industry, and that's because they're stuck in a mega-bubble
>Companies like Google, Apple, Microsoft, etc. have to lots of smaller, mildly innovative companies in order to give the impression that they themselves are hip and innovative, otherwise their stock price will tank
>Whatsapp, a simple messaging service, was bought by Facebook for $19 billion dollars

I say five years tops until the happening. What worries me is that personal debt within the middle class is going to let us cross the point of no return without ever knowing.

>> No.460575

>>460571
*Companies like Google, Apple, Microsoft, etc. have to BUY

>> No.460577
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460577

>5 years tops until the happening
Shiggy diggy

I wish I got paid every time someone predicted a happening.

>> No.460610

Middle class buying power would be greatly increased if they didn't piss it away.

> New 20-40k car every 3-5 years
> Larger-than-they-need house
> Student loans

>> No.460616

>>460610
>middle class buying power would be greatly increased if the middle class didn't buy anything
Umm...

>> No.460641

>>460616

I didn't say don't buy anything but there's horrible overconsumption.

10k used prius w/100,000 miles that gets 40-50 mpg > 40k new truck that gets 14-20mpg

1000 sqft condo > 3000 sqft "dream house" that will be 80% empty for 10 years due to waiting to have kids

>> No.460663

>>460610
>>460641

/thread

>> No.460731

>>460571
>>The middles class has compensated by taking on large amounts of debt, but this source of money is nearly tapped out
[citation fucking missing m8]

The average consumer debt per household has been stable or falling in recent years.

2006 $7,971
2007 $8,472
2008 $8,382
2009 $7,854
2010 $7,034
2011 $6,734
2012 $7,172
2013 $7,102

Your happening is not happening.

>> No.461000

>>460731
My other points still stand.

>> No.461021
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461021

>>460731
>>461000
Don't listen to this man/woman.

>> No.461025
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461025

>>460731
>>461000
Don't listen to this cat/dog.

>> No.461026
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461026

>>460731
>>461000
Don't listen to this gooby/pls.

>> No.461443

>>460731
It's falling due to default, not repayment.

>> No.461491

>>460577
Trademark the word happening. Then rake in the $

>> No.461518

>Middle class buying power, the driving force behind the economy

Demand-side nonsense. Look at fucking china, they consume next to nothing. Yet their economy grows 10% every year.

Consumer spending is not a "driving force" it is more of a byproduct of productivity.