Vacuum Cleaners Discussions

Early news reports in the USA are saying the London financial markets nosed dived today in the worse downturn ever.  This comes on the heels of a 4 percent drop in the Dow Jones Industrials last week alone.  Since today is a Federal Holiday in the US in observance of Dr. Martin Luther King the financial markets are closed.  Not sure what impact the London market fall will have on the US markets--have to wait to see.

What and how long will it take jaydee to realize that he needs to enter the low to middle price range vacuum market to stay competitive in the USA in the big box stores' venue?

Any news yet on the 2007 dyson sales? 

Carmine D.

Ben Bernanke, the Fed Chief quoted Leo Tolstoy before a Senate Hearing on the economy AND Warren Buffett says we are in a recession all in the same week.  Got my attention.  The number one wealthiest man in the world according to Forbes says the US is in a recession.  I believe him.  

February Jobs data was released yesterday.  For the second straight month in a row, jobs were lost in the US economy in February.  A sure sign of a recession.  As if this President needed one more sign to convince him. 

When economists and analysts look back on this year, the infamous Fed rate cut decision on the Martin Luther King Jr. Holiday, and the events that started my thread, will become the official start of the US recession of 2008.  With the consequences felt globally.

Carmine D.

It's coming on two years that I heard an interview quote from Buffet saying he was dumping US Dollars and buying into Euros. So much for patriotism when you can make a buck Internationally. With the Global Economy, trickle down economics hasn't and never will work. People who believe in Free Market Trade without an equal trading field should be ashamed of themselves and this is just as big a part of the economic problems in this country as is the mortgage crisis and borrowing money for the war! If we are trying to trade with subsidized and socialist trading "partners" we too need (despite our heritage) to have some sort of socialist assistance. Every "ism" in it's purist form is destined to fail it's constituents . Including Capitalism. We need to hybrid our system, take care of our own until we become stronger economically. JMHO

Lucky1 wrote:

The Euro hit an all time high against the dollar this past week.  $1.59 to the Euro.  Sad but true.  Buffett's timing was just right, as usual.  Arbitrage is the practice of making money by trading currencies.  Buffett can teach the course.

Carmine D.

Lucky1 wrote:

When jaydee collected the $6.4 MILLION from HOOVER in 2000 he went to Malaysia to mass produce dysons for world markets.  Skipped right over the UK.  His country of origin.  Brits still upset about that maneuver.

Why did he go abroad?  Cheaper labor costs.  At the time 30 percent less than the UK.  It was probably more.  Kept the dyson prices the same and even went up higher.  

Slave labor without the guilt.

Carmine D.

Mark your calendars.  March 14 [not the Ides of March as Shakespeare said in Julius Ceasar].  Why?  The US government bailed out Bears Stearns, an icon financial institution with 80 years of revenues and profits.  It's CEO said it had a liquidity problem [read it couldn't make payroll and its financial obligations to its clients and customers].  The US taxpayers in their kindheartedness gave BS an interest free loan.  Why?  Because BS is too large to fail [read the domino effect would bring down many others]. There will be more to come to drink from the trough of the US taxpayers in the months and years to come. 

Stock price of BS dropped 50 percent yesterday.  It's down 75 percent for the year. 

Carmine D.

CarmineD wrote:

Hi Carmine,

Thanks for the report.  It of course make me mad as all get out.  Money is found Bear Sterns but there is no loweiring of interest rates to aid the everyday man in escaping forclosure.

Well -- it's a mean world to live in but we've got to stay here 'til we die . . .

Venson

Venson wrote:

Hello Venson:

Ironically, the Fed has cut the Fed Funds rate since September 2007 from 5 to 3 percent.  And very likely to cut again this week anywhere from 25 to 75 basis points.  Despite these efforts, the 30 year mortgage rates have actually gone up over this time rather than down.  No doubt the effects of recession [sluggish economy] and inflation [record breaking commodity prices] vying concurrently on the market conditions. George W.  like his Father doesn't have a clue of the economy's severity as he tap dances and sings on the steps of the White House. 

Word on the street is to look for more banks to petition the Fed for bail outs.

Carmine D.

Hi Carmine,where do the feds get the money from.

Thanks.

MOLE

mole wrote:

Mole:

As always, your question is right on the money.  The Fed prints the money [US dollars with the technical assistance of the Bureau of Engraving and Printing, a Department of the US Treasury] that is in circulation here and abroad.  Increasing the money supply in circulation increases liquidity and credit in the markets.  Decreasing the money supply contracts the money supply in circulation.  It's called "monetary" policy.  The former is inflationary if it goes to the extreme [recall the worthless money in Europe during and after WW11].  The latter is recessionary if taken to the extreme [recall the Great Depression of the 30's].  The Fed's job is to keep the right monetary balance so as not to tilt the US economy [and world markets] too far in one direction or the other as the normal business and market forces influence the supply and demand for US goods and services both here and overseas.

Carmine D.

Hey Carmine,

All's well that ends well.  The Times Onlines says, "JPMorgan Chase Says It Will Acquire Bear Stearns for $2 a Share".  That amounts to about a $250,000,000 which is considered a bargain basement price.

Life is funny.

Venson