Morgan Stanley is issuing a recession alert

Topspin said:
ahhh millions of investors invest in energy superdork
and higher consumer spending on non energy as listed is very good for the economy.
Recession odds just went down not up.
Click to expand...

Damn you are dense. The vast majority of the public does NOT invest into energy stocks. Lets take an example to help you through this....

If you have 4k per month in income and it pays the following expenses....

Rent/Mtg $1500
Utilities $350
Food $350
Insurance $100
Car payment $350

you end up with $1350 per month in discretionary spending... for clothing, entertainment, travel etc.....

Now if grain prices escalate (which also forces the price of livestock up) and energy prices escalate... what happens?

Since you do not know that answer, I will tell you.... your utilites go up. Your food bill goes up. If they go up and your income does not change.... where do you take the extra money from? It comes from the $1350 in discretionary spending. If consumsers decrease/stop spending in those other areas, those sectors go DOWN.

Now add in the housing problem and rising healthcare costs. That ADDS to the downturn.

Quit looking at last quarter and the retail numbers that just came out.... those (once again) are BACKWARDS looking numbers. They project diddly squat as to what the future will hold.
 
Yes 2/3 of our economy depends on what we spend....
Once inflation gobbles up the discretionary money sales will drop, companies will lay off, people will worry and spend less and the cycle will accelerate and repeat.
 
supertool, do you ever make your clients picks or do you always go with what the analyst tells you.
Like I said millions of inteligent investors invest in energy, maybe you don't.
Again the point is recession. How does a higher percentage of increasing GDP from energy make it a recession.
 
So there is enough stock for everyone to invest in the energy sector ?
And what would happen to the other sectors that would lose investment ?
 
well if everyone took your advise and transferred all their investment money to the energy sector, what do you think would happen Shotspinner ?
 
Topspin said:
supertool, do you ever make your clients picks or do you always go with what the analyst tells you.
Like I said millions of inteligent investors invest in energy, maybe you don't.
Again the point is recession. How does a higher percentage of increasing GDP from energy make it a recession.
Click to expand...

Toppy... yes, millions invest in energy. But millions more do not. My clients are not the ones that will be worrying about inflation or the economy for the most part. They have the assets to withstand a prolonged downturn and they are invested in gold and energy. But we are not talking about my clients toppy.... we are talking about people on the whole.

Next, GDP is not expected to be increasing.... it is expected to decrease. Even those who think we can avoid a recession believe GDP will diminish next year.

Finally, did that example above completely lose you? Do you not comprehend how higher energy and food prices DECREASE the ability for consumers to spend in other areas? It amazes me that you supposedly have an MBA, yet at the same time are too ignorant to understand that simple fact. A fact that someone with a GED could understand.
 
supermoron,
were talking recession, spending is up accross the board. GDP will go up cause of it, now explain how higher spending accross the board equals lower GDP.
 
it's way over your head usmoron you should stay in the kiddie pool and let the economics major and the investor work this out. It's no place for a GED
 
Topspin said:
supermoron,
were talking recession, spending is up accross the board. GDP will go up cause of it, now explain how higher spending accross the board equals lower GDP.
Click to expand...

You really are retarded aren't you? You said yourself inflation is a problem. How do you not comprehend that example I laid out for you?

Again, try to answer the following question...

IF your spending on energy and food goes up and thus spending on other areas goes down.... what happens to those other sectors toppy?

If you refuse to answer that again, then we are done, because I am tired of banging my head against a brick wall trying to explain this to you.
 
supermoron and your GED sidekick
you freaking losers now want to change the subject to what's best overall.
I shoved your collective heads and half brain up your butts on the recession.
Inflation comes from too much demand, and is almost opposite of what causes a recession
 
You must log in or register to reply here.
Back
Top