U.S Economy

Thanks for your valuable inputs, ArtChin & YourNumba1Fan.

I wonder: .. with all that huge budget cuts in California, signed by Gov. Arnold recently - Is that mean lots of 'pink slips' are going to be handed out to city & county employees? Will that affect or jeopadize anyone in our Iu Mien community?

This is one of the reasons why I didn't want to work for the City/County, fundings/salary seem so insecure. Or, was I wrong?

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您的吻，甜蜜的吻叫我思念到如今。

Many nations in the World economy have technological advance
because of their advance in Math & Science. These countries
design and build products from scratches.
Paris used to be the center of universe because there were many
great scientists and mathematicians born in France. For example,
Laplace and Fourier were so great that you will find their
mathematical transforms in the advance differential equations
and electronic communication textbooks today.
After World War II, the world attention has been shifted towards
New York. Many foreign country technology firms have been listed
under Nasdaq in Wall Street.
And ofcourse, Albert Einstein was the greatest scientist in the
20th century.

I consider 5 World Economy Gravities.
They are:
1. Asia Economic Gravity
-Japan,Taiwan+China,South Korea.
2. Europe.
3. North America(U.S,Canada)
4. Latin America (Brazil)
5. Australia Continent(Australia).

Military Super Powers and 5 Permanent Members of UN:
-U.S,Russia,China,France,Great Britain.

1.What came down must go up.
2.Wall Street does not care what the corporations report for
the past quarters. But it cares about future quarter guidance. Don't panic. And if you chase the market, you will
get burn.
3.A economic reading below 50 is an indication of contraction.
Two consecutive readings below 50 indicates recession.
Readings above 50 is an expansion.
4.If you are young then there's nothing to worry. But if you
are close to the retirement age, you will lose money in your
401K.
5. World's largest economy: 1.U.S,2.Japan,3.Germany,4.China
as of 2004,5.United Kingdom, 6.France, 7.Italy, 8.Canada.

Money Magazine: Riding out a recession
Wednesday January 23, 10:31 am ET
By Michael Sivy, Money Magazine editor at large

The Federal Reserve's large interest rate cut on Tuesday is just the latest sign that experts think the economy is heading straight for recession.

In fact, the conventional wisdom is that the U.S. economy entered a recession in December.

It's worth remembering, however, that a literal recession - two back-to-back quarters of economic decline - isn't inevitable. And the actual evidence that one has begun is quite limited. We won't really have crucial data until preliminary fourth-quarter GDP numbers are reported later this month.

Nonetheless, it's likely that the U.S. economy will be weak for most of the year.

So the natural question is: How much further do stocks have to fall? Are the potential losses so big that investors should be making lots of changes to their portfolios?

It's certainly sensible to be somewhat defensive, whether there's a full-scale recession or simply a slowdown.

Diversification is less important in a bull market when a rising tide lifts nearly all boats. But when stocks are falling, some groups really get pummeled while others hold up surprisingly well. So spreading your risk is especially important.

Assuming that you have always been well-diversified, there's a good case for staying the course and not selling a lot of stocks or massively reshuffling your holdings. If anything, you should be tracking stocks that you might want to buy later this year at bargain prices.

Here's the basic case for just hunkering down to ride out the current slowdown:

Most recessions are fairly short Of the 10 recessions since World War II, only two lasted more than a year. Those two - in the mid-1970s and the early '80s - were crushing and did merit substantial portfolio readjustments. But more often, recessions only disrupt investment strategies temporarily.

The stock market isn't the economy Growth may be way below average all this year, and unemployment may continue to rise. But the stock market anticipates future trends, and share prices typically start to recover six months or so before the economy rebounds. That means share prices could be rallying by mid-year.

Go here for the rest of this story:
http://biz.yahoo.com/hmoney/080123/011508_recession_investing_moneymag.html?.v=6

I want to know more about this too. But it's too bad i don't know anything about economy.:(