"Bernanke finally admitted that recession is looming"
A touch of foreshadowing. Rates are getting ready to be jacked up. Trying to control inflation after it is a problem is really going to suck. I don't care how the Feds measure inflation. . .it is a problem and is worse than what is being release / publicized.
Gal gas Janurary 1998 $1.13 2007 $2.27 2008 $3.05
Doz Eggs Jan. 1998 $1.05 2007 $1.55 2008 $2.17
Tomatoes Jan 1998 - 2004 $1.47 2007 $1.62 2008 $2.03
Commodoties Jan 1998 - 2004 100 / 106 2007 114 2008 122 (includes food, beverage and energy)
Yet you check CPI over the same time and it has drastically gone down. . . I'm not sure what all they are checking but find it hard to believe a 40% drop from 1998 - 2008 is true.
Medical care has increase 50% in 10 years. Again a ridiculous figure. As a small business with 25 employees my healh care costs have risen double digits each year for the past 5 years.
I've seen massive increaes in cost increases within the past 6 months. Cut Paper pricing has jumped 5-10% a couple of times. While my cost on a case of paper 2 years ago was $19.00, last year $22.00 this year $26.00. Furniture manufacturers are passing the rising cost down. . .3-12% increases where as a standard increase may be 1-4%.
With personal income remaining relativly stagnant over the past few decades (wikipedia). The ridiculous debt load average Joe has racked up in the past 10 years coupled with our current problems. . .there are a couple of legs left to the recession.
A flipant statement about a looming recession is paltry in regards to the actual fiscal situation of "Joe" in America.
Surprisingly, these hard facts never really interested the government and credit bureaus much, at the end of the day they know that our economic foundation has been built on sand, and at the risk of sounding cliche and paranoid: the real fear is fear itself; what will we do when the American people finally realize that they can no longer live beyond their means? Why bother stopping the bleeding if there is no longer any circulation? Because we all know that most consumption has been fueled by debt!
I digress, all I'm really trying to do is determine if demand will remain even throughout the bad times. So far so good, while most have gone south, Nintendo hit a plateau with people trying to figure out the same thing, knowing that at this very moment its' worth much more, but they're afraid too!
Place your bets gentlemen, during times like these the odds are slimmer but the pie is fatter... (speaking of flippant remarks) what do you have to lose, your valuable dollar?
If you look at the TSE, 7974 is down 27% - roughly in line with other high flyers - while NTDOY is only down about 15%. Not bad given the market, growth prospects, long term earnings prospects from games, and the 40% payout ratio.