Rock Bottom

The Economy has truly highlighted the disparity between the poor and rich. I think the middle class has realized that they are a lot closer to being poor than that top 1%. For when you consider it, the only people this economy is truely affecting is the large middle class. The wealthy have lost money but not enough to truely effect their lifestyle, while the middle class who were invested in the almighty stock market have most likely lost half of their worth and cant get loans that are necessary to survive (Small business, Car loans, etc.). Meanwhile the Poor couldn't get loans before except from predatory lending services like... Payday Loans and they weren't invested in shit because they didn't have the discretionary income nor the network to direct them to sound investments. Banks wouldn't help them get a house, so the only thing that has truely changed for the poor is the cost of living (Food, Rent, Gas, Bills) which have all gone up. But they could care less about this whole discussion on fixing the economy because they were never considered part of the system anyways. One thing is apparent though, a lot more people know what it means to be broke as fuck for whatever reason. ROCK BOTTOM, why the hell didn't they hand out the 700 billion to the citizens. That would have stimulated the economy, we clearly don't have a problem knowing how to spend money. Its not being able to save money that screwed everything up.
Eminem - Rock Bottom
eminem: rock bottom

Funny TARP bailout

Goldman Sachs Suddenly has money and would like to repay their super cheap loan back. (Fox Buisness)GOVT better hurry up and take that before Sachs changes their mind.
In the spirit of the Bailout, here is some more comedy.

Crank Yankers - Wanda Sykes

Crank Yankers
Gladys' Conjugal Visit
comedycentral.com
Joke of the Day Stand-Up Comedy Free Online Games

Russel Peters Stand Up Comedy



Eddie Izzard Stand up (Religion)

Eddie Izzard (Do you have a flag?)

Eddie Izzard Stand Up (Plymouth Rock)

Max Rameau is coming to your town

"We're matching homeless people with people-less homes."


All the red areas are areas saturated with forclosed homes.

It was only a matter of time before all of these empty homes in markets across the U.S became rent free villa's. Max Rameau is a real life Robin Hood to homeless of Miami.

"MIAMI — Max Rameau delivers his sales pitch like a pro. "All tile floor!" he says during a recent showing. "And the living room, wow! It has great blinds." But in nearly every other respect, he is unlike any real estate agent you've ever met.... Rameau is an activist who has been executing a bailout plan of his own around Miami's empty streets: He is helping homeless people illegally move into foreclosed homes. "We're matching homeless people with people-less homes," he said with a grin.

Rameau and a group of like-minded advocates formed Take Back the Land, which also helps the new "tenants" with secondhand furniture, cleaning supplies and yard upkeep. So far, he has moved six families into foreclosed homes and has nine on a waiting list."I think everyone deserves a home," said Rameau, who said he takes no money from his work with the homeless. "Homeless people across the country are squatting in empty homes. The question is: Is this going to be done out of desperation or with direction?"...

There's a real need here, and there's a disconnect between the need and the law," he said. "Being arrested is just one of the potential factors in doing this." Miami spokeswoman Kelly Penton said city officials did not know Rameau was moving homeless into empty buildings — but they are also not stopping him. "There are no actions on the city's part to stop this," she said in an e-mail. "It is important to note that if people trespass into private property, it is up to the property owner to take action to remove those individuals."Pierre herself could be charged with trespassing, vandalism or breaking and entering. Rameau assured her he has lawyers who will represent her free."[Fox News]

As the market is looking bleak for the very least next year, this will become more of an occurrence in a foreclosed neighborhood near you. The question is are you going to wake up one morning with a crack house next door or a family in need who just wants a roof over their head. To ask the police department to take care of the situation and protect the houses is preposterous. The banks take the house from people who cant afford their A.R.M. that Washington mutual and banks alike told people were safer than a traditional mortgage. The people get kicked out on their ass because they were most likely laid off. The banks run out of money and get 700 billion from the people so that they can afford to take these houses and hold the house until they can get "reasonable value(Bubble Prices)" for the properties. I see this as a bank mortgage when they finish paying off the American people then they can complain. Until then just keep filling your pockets off of free money(T.A.R.P.).

Can anyone really justify trickle down economics?

The term of deflation is rarely used when describing the freemarket economy in the United States, but add it to your vocabulary for Thanksgiving and Christmas dinners. While I will continue to encourage students not to use Wikipedia as a direct source for speech's and papers I will use the explanation presentented by the nice people of the Wikimedia Foundation.

Deflation is the opposite of inflation. Therefore, under the usual contemporary definition of inflation, 'deflation' means a decrease in the general price level(Barro & Grilli, 1994, p.142)

In economic theory, deflation is a general reduction in the level of prices, or of the prices of an entire kind of asset or commodity. Deflation should not be confused with temporarily falling prices; instead, it is a sustained fall in general prices. In the IS/LM model (that is, the Income and Saving equilibrium/ Liquidity Preference and Money Supply equilibrium model), deflation is caused by a shift in the supply and demand curve for goods and interest, particularly a fall in the aggregate level of demand. That is, there is a fall in how much the whole economy is willing to buy, and the going price for goods. Because the price of goods is falling, consumers have an incentive to delay purchases and consumption until prices fall further, which in turn reduces overall economic activity - contributing to the deflationary spiral.

The New York Times today featured an article by JACK HEALY concerning the fear of defelation taking place due to the 1 percent fall in the Consumer price Index this month.

A key measure of how much Americans pay for groceries, clothing, entertainment and other goods and services, fell 1 percent in October, according to the Labor Department, the biggest drop in the 61-year history of the consumer price index. Much of the decline could be traced to a sharp drop of 14 percent in the price of gasoline, but the cost of a broad range of goods including clothes, milk and vegetables also fell sharply.....
The talk about falling prices is all the more remarkable because just a few months ago many economists were concerned about inflation and the prospect of stagflation, in
which inflation and unemployment rise simultaneously.
“It’s funny that just a few months ago everyone was wringing their hands over inflation,” said NarimanBehravesh, chief economist at Global Insight. “It’s gone. It’s over.”(Healy, NYT 2008)

The fact that their are economic analyzt surprised at about the pending deflation to economy ask why. my reason for asking is if the Free market Capitalism economic model is partialiy dependend on the concept of Supply side ecomonics(Supply & Demand). If you have an item and there is high demand for it the price will go up (inflation). It has been the general consesus for many years the USA has become consumer nation, that lives way above its means due to the accessibility to credit that excisted before this current financial downturn. If the country has increased the unemployment rate in the last year by 2 percentage points, the price of gas and other goods increased to the point that families had to make a choice between food and gas. Of couse demand for all the extra crap that is marketed to the masses will decrease. With that decrease of demand its only natural that the sellers have to lower their prices to remain viable in a different market plaace. How is it so inconcivible that deflation is occuring, an should occur to some extent to return the market to a true equilibrium?
I am just dissapointed at the education of the American people is so far lacking that the general public is not equiped with the lingo and knowledge to understand something that effects them so much. I guess that was the goal of the powers that be. And no, there is nothing funny about confused economic analyst who are just playing catchup because their economic predictive models were proven to be invalid.