In THIS economy?!

Water Cooler
#1

I am getting so f’in tired of hearing the phrase, “In this economy!?”

It seems like anytime I say something with financial implications, the knee jerk reply is the aforementioned.

Me – “I want to refinance, buy a new car, jump into a new job, move, b!tch about MBAs and CFAs on AF, hit the club, crush natties, hang up my own shingle, etc.”

Other Person – “In DIS Economeeee?!”

Unemployment is at a respectable 9.1%. I remember from my L1 books long ago that 5% is normal and expected. Therefore 4 more people than normal out of 100 are in need of work, whooptie doo.

Rates are at all-time lows making it advantageous and opportunistic to assume more leverage.

Finally, value guys such as myself have done rather well over the past few years picking through the rubble for screaming buys.

The past 2 years have been relatively good and uneventful (Unless you watch Faux Newz in which case every day is in anticipation of the end). Furthermore, no one in this country has missed a meal in the past 30 years; although, many arguably should be missing a few or ten.

The USA is the only country with overweight homeless people text messaging on a iPhone 3Gs. I’m not that smart of a guy, but I’ll be damned if I need to listen to rubbish from sheeple regarding ‘the economy’ and the dire shape it is in.

Someone cheer me up with MBAvsCFA talk, my coffee has not kicked in and I am just befuddled at the incompetence I deal with daily!!

#2

9.1% unemployment in Zimbabwe? I’m on my way.

#3

CFAvsMBA, you are making a good point. The US economy is much better than some other economies and for some better than any economy 1,000 years ago. On the other hand, typically when people use the term ‘in this economy’ they mean that the outlook today is much worse than it was recenty (for example, 5 years ago). Clearly, some people such as you have benefited from the crisis. But on average people are worse off today than they were 5 years ago. Though mortgage yields are low, people can’t refinance their houses because they have negative equity and they are better off walking away from their homes. Though unemployment is only 4% higher than it used to be, the impact is more significan than the number reflects. Does it mean that we are seeing a structural change and going forward 9% is the new equilibrium level? Does it mean that if you include all discouraged people who have given up looking for jobs that around 17% of those who want to be employed (or 9% of those who are actively looking) can’t get a job? A lot of people have already been negatively impacted by the recession and the fear is that we are seeing a long-term structural change.

#4

Dude seriously? In this economy? What’s wrong with you?

#5

Isn’t there always a difference between the official unemployment number and the actual unemployment? From what I understand 9.1% is the official which doesn’t take into account the people who have stopped looking for job and those who are underemployed - if those groups were taken into account the number is closer to 15-16%. Is that not accurate? Also given the incompetent congress a lot of people are starting to take into consideration the massive budget cuts that are coming which will increase unemployment more and further decrease demand. That coupled with regular household deleveraging we might be hearing “In this economy” a while longer.

#6

I don’t see what’s wrong. People are probably using that phrase as a proxy for more specific things. For instance, I would probably not aggressively try to change my job “in this economy”, since I know that the results might be unfavorable given the state of the job market. Or maybe I might not buy a new car “in this economy”, as the probability of me being laid off in the short term might be higher than in other years. Sure, spending on basic needs might not change much. However, economic decisions that relate to marginal income will definitely change for many people “in this economy”.

#7

Given the condition of the country ‘In dis Economeee’ (dis time is different folks, trus me!), I am going to begin selling tinfoil hats in anticipation of the inevitable New World Order and RFID microchip human implantation. Hide yo kids, hide yo wife, cause they implantin all of us out here! Listen to me, and if you don’t believe me, take a look at Faux Newz. Straight truff son! Act now before it’s too late in which I’ll simply laugh, point, and say, “I told you so.”

#8

Remove the comma & the numbers make sense. BTW things are actually looking up. Inflation is now +/- 7% and the economy is experiencing strong growth. Could be reviewing your resume soon! Apply in advance coz Babylon (USA) is falling.

#9

kmm1486 is right to point out about the broad unemployment numbers being a much closer to the pain un(der)employed feel. A few other stats you can find via the Department of Labor is that unemployment for college graduates and median length of unemployment are both higher than ever before. I personally think that the normal unemployment number is a rather hand-wavey term so that certain politicians can convince the public that everything is fine. That being said, “the economy” will always be used as an excuse term for certain groups to screw others (i.e. stores raising prices). We all know that certain companies like Google are doing better than ever, while others like investment banks are shedding profits and employees alike.

#10

Honestly, if you take the psychological factor out of the equation, I do not see the reason for this panic attack in the whole western hemisphere. I accept the fact that people will not be able to buy their lives with credit anymore. At least as they used to do. Now you will need to work a bit more for it and be smart. Educated people always have more options in their lives, since they can produce a service or product that someone else needs. So even in these struggling times the opportunities are there. One just needs a good angle to see things differently and grab the opportunity. Rothschild back in the 18th century once said that “Buy when there is blood on the street, even if it is your own”. People have to understand that they need to leave their routines and just attempt new things. It does not matter if your in investment banking, engineering, a cook or whatever. If you got a skill and you work on it honestly you will get what you deserve for it. Stoic philosophers believed there are two kinds of things: free things and enslaved ones. Enslaved ones are those which we cannot control and free one the ones we do control. One must pay attention to those things he can control. If someone gets fired or not is not in his control. It’s under the higher management’s jurisdiction. However, doing your best when you work is something someone can control. Instead of worrying what the boss or any other factor of your life will do, one must pay attention to his own actions because these are what shape our careers or lives in the long run. I missed 10 mins writing this thing instead of refreshing some stuff for an interview tomorrow in a central bank. If I got a question missed because of these 10 mins and ruin my chances because I love reading CFAvsMBA stuff in AF it is my fault not of the damn economy or … him

#11

so what have you been buying?

#12

If I told ya, I’d have to shank ya!

#13

you do realize that even if you begged someone to take you seriously, they will most likely dismiss it anyways. don’t get an inflated head like what you’re buying people will care or follow. they won’t. I went through that phase too myself for 5 months when it dawned on me.

#14

Check 4 posts up. I have at least one more follower than you. Now get back to your shared cubicle and reconcile my trading!

#15

Hey look, it’s that tool again!

#16

Sorry, was referring to FrankArabia, but the quote message didn’t work. I think the site’s falling apart this afternoon.

#17

in this economy, i am a value investor picking stocks I never bought. yes I am a great investor. black swan is overrated. tools normally think its the best thing since slice bread.

#18

You have a whopping 6 points and are stamped as a C rating. Nuff said, Chad revalued your input and came to the conclusion that the paper chase from Call Center to Investment Banker MD is simply drivel.

#19

who cares what my rating on here is. i just come on here to troll you fools. “how do i get a job” “is this a good job” “my friend needs a job how does he find one”. there is NO insight here. its just a crap talking forum to blow time when you’re bored at work and desperate ppl looking to get into the industry. and yes, came from a call centre and got into something even better than ibanking imo.

#20

I knew you were a racist Canuck. Where’s your pal WillyR?