So how does an economy slow down? Uncertainty...

[nadinbrzezinski]

I will give you a personal example. We need to refurbish a bathroom...

Personal decision, but I do not use credit card for this, I use savings.

So first time we were ready... we were in danger of a government shut down...hubby works at the post office and is a military retiree. Nope, we knew that we'd have to live from savings.

Now well... you do the math.

THis translates into that money staying in my bank account instead of going to my local contractor, who does extremely good work.

Multiply that.

And businesses have a similar problem... invest and face a shaky economy, or leave your funds parked.

This is what this crap the republicans are doing is doing to the economy and how you slow down, or worst, STOP a recovery.

Yes some major businesses are parking on major cash and are part of the problem... but if you were wondering how that happens... here is a small example.

[Amerigo Vespucci]

1. It slows down because...

1). Ridiculous home prices drop like a rock. "Single family" homes in Santa Clara County, which (perhaps) sold for $25K when they were built decades ago, and are now held together by termites, suddenly have a list price of $750K.

There's no WAY that's sustainable.

2). Companies realize they can FIRE YOU, and scare the guy next to you into doing YOUR job and HIS for a SINGLE salary, so there is NO MOTIVATION to hire.

3). Restaurants, grocery stores, gas stations keep raising their prices to maintain their profit margin, because what the hell are you going to do...NOT eat or drive?

I don't support Obama taking victory laps for ANYTHING related to the economy. Everyone I know is BLEEDING.

[nadinbrzezinski]

2. I also gave a concrete example

that people will be able to grasp easier...

[phasma ex machina]

3. It shocked me the first time somebody explained "flipping" a house to me.

Silly me. I naively thought people bought houses using their savings as a down payment to actually LIVE in them.

[Amerigo Vespucci]

4. "Fortune" magazine ran a profile on a house flipper...

...and this guy was just a pig, no other word for him.

At the PEAK of the "housing bubble," the local "Metro" newspaper ran a story on the "real estate boom" in East Palo Alto.

This town was largely (but not exclusively) known for drug dealing and a high level of violent crime.

But Silicon Valley "ran out" of "affordable" housing.

So Metro reprinted an ad that showed a house that looked like a tool shed sitting on a dirt lot, billed as a "fix-R-upper," for

$250K.

There is NO WAY to keep that kind of gravy train going indefinitely.

[abelenkpe]

5. +1 nt