PATS Aircraft, a custom jobber shop for private jet mods in Delaware is expanding due to ever increasing demand for customized private aircraft. The plant will be expanded and many new hires will be needed.
Corporate buyouts and mergers are on the upswing again. Billions of dollars are changing hands and shareholders are reaping the dividends.
Home forclosures are at the highest rate ever seen in this country with more to come. American Home and a couple of other huge lenders have gone bankrupt due in part to losses sustained from subprime lending. The banks are stuck with thousands of portfolios that won't sell because people don't have the money to buy them.
What's going on? Has the distribution of wealth become so slanted that average Americans can't even afford to make their mortgage payments?
Thoughts?
The same thing that happened in '98 when everybody was talking about how great the economy was- though it was in the crapper. NO real money or economic stimulation out there.
In 1998 the indicators ( unemployment, business start ups, and the stock market) looked great! Except: Unemployment was down because so many people were given severance packages to accept layoffs. This money went into start ups, usually dot.coms, so new businesses looked good, and bringing up the stock market. BUT: The startups had no real assets and produced no real income, thus not stimulating the economy. In other words, the "great" economy was based on false indicators. When it became apparent that dot.coms were of no intrinsic value, the stock market crashed, the companies went out of business, and the severerance packages were used up.. Although the "crash" did'nt become evident for a few years, it actually happened around 1996. During 1998 ( the "good" year ) Personal bankruptcies and layoffs were at an ALL-TIME
record high, but unless it was happening to you, you wouldn't know as the guv was using the wrong indicators. Move ahead to now:
There are certainly some big sales of corporate and private assets right now- but these sales are deeply discounted. Ask yourself why the corporations are selling off these divisions and assets in the first place. They weren't showing a profit. How many of the buyers are, once you get through the paperwork, overseas?
Yes, many manufactures and maintainance companies of large scale items are still doing well. The cost and time for shipping keep them more profitable here than overseas. ( Don't know if all of the PARTS are being fabricated here though. I rather doubt it. I think it's mostly final assembly work here)
Unfortunately the same can't be said for most manufacturing and design, especially in the electronics biz- my bailiwick.
New technology? In the 50's it was the transister. In the 60's it was Space technology, The birth of a somewhat useable computer, TV upgrades. In the 70's it was the switch from analogue to digital technology, and new chips everywhere. In the 80's it was the 'modern" computer, fit for the individual consumer, along with Easylink ( a precursor to the internet). in the 90's it was the cell phone. END OF NEW TECHNOLOGY. Since the invention of the cell, all else has been upgrades (iPods are a mix of old cell and computer technology) Each new breakthrough gives the economy a kick in the butt. However, we are on decade two with NOTHING. Old technology gets cheaper and cheaper as it's copied by generic overseas companies, eventually adding nothing to our faltering economy.
Real estate? A house that goes for 180,000 in Florida goes for 550,000 in northern NJ. It's not the materials or labor- it's what the market will bear. As people make less money, the market bears less.
Bars? My Thursday night gets packed, yet sometimes they barely have my pay in the register. Why? Everyone's using credit cards. Fine. However, after a few years of that, and lower income levels, you can guess what happens.
In other words folks, using the REAL indicators, our economy is probably in the worst shape, and has been for the longest time in our country's history. Due to econic safeguards put in place since the Great Depression, an individual may not suffer the same way as they did then, but we ARE in deep doo-doo.
....and oh, yes, no one to blame but ourselves. Looking for the cheap and easy way, yet still wanting the best, and a national work ethic that seems to to be disappearing..
