Isn't low capacity utlization a very bullish signal?

[blazespinnaker]

Re: Isn't low capacity utlization a very bullish signal?

OK, so you're saying we don't have "low capacity utilization" in the things that matter then? That the indicator is just pure bull****?

I have no problem living in a world where everyone is as wealthy as I am.

[nero3]

Re: Isn't low capacity utlization a very bullish signal?

A lot of gross over-simplification going here regarding production capacity. A factory set up to make cars can't just turn a switch and start making toasters or whatever. And the skilled people who design the product, those who re-tool the machinery, etc don't always automatically have skills that transfer from one product to another. Nor the management to oversee the production. Not really sure I understand the point of the original post. Its Bullish only if we have excess capacity to produce items we NEED or can sell. Otherwise its worthless.



I agree 100% with Nero for once. We have a long way to sink in living standards before we reach what I grew up with, and we were considered fairly well off. People need jobs, not handouts. Its all about the jobs. We need smarter, more controlled, well thought out growth instead of the free for all we've had lately.

The FIRE economy boom was a mirage. It was BS. But people want to look back on it as the norm and do whatever they can to revive it. All this excess capacity only existed because they could provide financing for the products they sold. Come on, do we really think people could all afford this crap? Even our "poor" had two cars, a flat screen TV, and a cell phone. Show this to a middle class banker from 1970 and he'd think we were on another planet. Poor?

Saying we have excess capacity is like saying someone who goes on a credit card spending spree has wealth. Just buying the stuff doesn't make you wealthy. You have to be able to afford it. Sure, the guy has all this junk laying around the house. TVs, stereos, ipods, etc. But he doesn't need it now. Now he needs to eat and put a roof over his head. An ipod doesn't seem that important when you are hungry. So like our excess production capacity, he'll pawn what he can for 10 cents on the dollar and move on.

Another thing is that the expectations from society we live in, the high social expectations to have some kind of high level useless job in my opinion creates mental sickness that give way to a whole medical industry for those who is unable to manage that life, but could have managed a simpler job, had the expectations from society been different, and more 1950 like. It's from the media, the tv and society in general this pressure comes from, and I think everyone is more or less affected from it. There is nothing wrong with having a simple job at a railroad, in these days, it's almost as if it is, and the result is that many, at least in my country get disabled, medicated, and a burden to society, instead of a contribution. (I am not sure but I think the unemployment rate in norway is around 20 % when these people are counted) In the official statistics I think it is around 3 %. It's an expression of a sick society. Peter Schiff have been mentioning this lately, in his talk about the minimum wage.

Another expression of this are the typical demanding western "fat lady", that is unhappy unless her husband is doing very well. Back in the old days when having a job was good enough I don't think this pressure existed in the 1950's, or in most emerging countries today.

It would not surprise me if we can get a reaction against success in the coming years. A bit back to the roots. But then, who knows.

[cjppjc]

Re: Isn't low capacity utlization a very bullish signal?

There is nothing wrong with having a simple job

Another expression of this are the typical demanding western "fat lady", that is unhappy unless her husband is doing very well. Back in the old days when having a job was good enough I don't think this pressure existed in the 1950's, or in most emerging countries today.

It would not surprise me if we can get a reaction against success in the coming years. A bit back to the roots. But then, who knows.

No I think the turn will come. Back to the roots as you say. Someone once said "If a man can make a good cup of coffee I can talk to him." In other words a certain pride in your work can lead to a stronger more balanced person. I was with a group of people the other night and someone mentioned how a person not present right then, J was earning a living. A few made derisive comments, I said "He's earning an honest liiving." At that moment the others thought about it and agreed.

[flintlock]

Re: Isn't low capacity utlization a very bullish signal?

OK, so you're saying we don't have "low capacity utilization" in the things that matter then? That the indicator is just pure bull****?

I have no problem living in a world where everyone is as wealthy as I am.

Nor do I. But that never happens now does it?

All I'm saying about low capacity utilization is that I suspect most of our excess capacity is in production of items no longer in demand without FIRE economy debt to fuel their purchasing. I mean, what do we make in the US anymore that people simply have to have? The main things I can think of are food and energy. The rest we can get elsewhere cheaper thanks to our short sighted worship of "globalism". Pandora's box has been opened and we can't go back.

The socialism we are seeing now in Washington is a natural progression of what happened when Corporate America decided that the little people don't matter as long as they are getting rich. Only now the chicken has come home to roost. All those peons just didn't disappear. They still have to be fed, clothed, and housed. So the rest of us can expect an ever growing burden to do so. The FIRE economy was partly an attempt at "bread and circuses" to keep the broke masses happy by lending them enough money to hang themselves.. But the music stopped, the money is gone, and now we are left with what I think will become a very angry mob.
So they WILL become as wealthy as you. But only because your standard of living will decline due to massive taxes to support them.

So we'll all achieve the grand Utopian dream of equality. Only it won't be a dream it will be a nightmare. You may outlive this, but your kids won't.

[flintlock]

Re: Isn't low capacity utlization a very bullish signal?

Another thing is that the expectations from society we live in, the high social expectations to have some kind of high level useless job in my opinion creates mental sickness that give way to a whole medical industry for those who is unable to manage that life, but could have managed a simpler job, had the expectations from society been different, and more 1950 like. It's from the media, the tv and society in general this pressure comes from, and I think everyone is more or less affected from it. There is nothing wrong with having a simple job at a railroad, in these days, it's almost as if it is, and the result is that many, at least in my country get disabled, medicated, and a burden to society, instead of a contribution. (I am not sure but I think the unemployment rate in norway is around 20 % when these people are counted) In the official statistics I think it is around 3 %. It's an expression of a sick society. Peter Schiff have been mentioning this lately, in his talk about the minimum wage.

Another expression of this are the typical demanding western "fat lady", that is unhappy unless her husband is doing very well. Back in the old days when having a job was good enough I don't think this pressure existed in the 1950's, or in most emerging countries today.

It would not surprise me if we can get a reaction against success in the coming years. A bit back to the roots. But then, who knows.

I remember my teacher making us watch this documentary back in the 70s.

[MEDIA][/MEDIA]

[flintlock]

Re: Isn't low capacity utlization a very bullish signal?

No I think the turn will come. Back to the roots as you say. Someone once said "If a man can make a good cup of coffee I can talk to him." In other words a certain pride in your work can lead to a stronger more balanced person. I was with a group of people the other night and someone mentioned how a person not present right then, J was earning a living. A few made derisive comments, I said "He's earning an honest liiving." At that moment the others thought about it and agreed.

I hear this kind of stuff all the time. People are so much more caught up in what someone does for a living than what kind of person they are. Its nauseating.

[Kadriana]

Re: Isn't low capacity utlization a very bullish signal?

Your sentiment in this post coupled with your unrelenting bullishness throughout this forum can only be explained in one fashion...you are a Goldman Sachs plant. Be gone you vampire squid.

I think it's easier to be bullish about the US when you don't live in the US. He doesn't see the foreclosed houses, empty restaurants or abandoned malls first hand. I think often the reason why I'm more bearish is there are I live has a high unemployment rate compared to a lot of parts in the country.

[flintlock]

Re: Isn't low capacity utlization a very bullish signal?

Exactly. This recession really is regional to some degree. Some areas hardly notice, others like CA and FL are harder hit. I think it will continue to spread before its over.

[nero3]

Re: Isn't low capacity utlization a very bullish signal?

There are different kind of vampires. The style of vampire I like the least is the organized crime style, human slavery, trafficking, drugs that style. The War on Terror is just completely misdirected, but could be very powerful if directed against organized crime. It should be directed against our local societies, and local cities, not against some far away place that we don't have any business in being. While the US is out fighting, it's rotting from the inside.
Second, unfortunately, I think there is a connection between the level of inflation, and corruption, organized crime, therefore, I even think it's strongly headed in the wrong direction. That's why we need to stop it before it is to late. As it is now, the police are doing the work, that's really a job for specially trained military units that can fight it as a war and blow them out of the water, not the police, that especially in countries such as mine have to kind manners.

[cjppjc]

Re: Isn't low capacity utlization a very bullish signal?

The War on Terror is just completely misdirected, but could be very powerful if directed against organized crime. It should be directed against our local societies, and local cities, not against some far away place that we don't have any business in being.

We. Has Norway joined in on The War on Terror?

[nero3]

Re: Isn't low capacity utlization a very bullish signal?

We. Has Norway joined in on The War on Terror?

Sure, I think there have died norwegian soldiers in Afganistan, and are some troops there. It's totally stupid, but the sucking up to the US have no limits.

[*T*]

Re: Isn't low capacity utlization a very bullish signal?

Sure, I think there have died norwegian soldiers in Afganistan, and are some troops there. It's totally stupid, but the sucking up to the US have no limits.

Yes, there are Norwegian troops in Afghanistan. Thanks for noticing.