What is up with the Economy!?

[Tunacan26]

The economy has "changed."

[tulsaokusa]

Originally Posted by zak98

agree! cash on your wrist basically. in mostly any country in the world. that is pretty liquid.

Exactly. This is just ONE of the several good reasons I decided to purchase a Rolex this year.

[rolexgiants]

Originally Posted by Zed Homme

While I agree that NYC hasnt taken the hit that other cities have, I cannot agree with your statement. Personally, I am shocked at how many empty storefronts there are on 5th Ave. I also seem to get into any restaurant whenever I want now. The rent I'm paying is 20% cheaper than it was in 2007 and I havent moved. The streets are packed with tourists, but if you go in the stores, they're empty....

i agree with u 100 percent.... i live on the upper east side... a lot of empty stores all over the place.... i never make dinner reservations anymore.... i walk right in and get a table right away

[mbrokerny]

Originally Posted by jasonsundberg

If the USD continues in its downward spiral against other world currencies, and Rolex continues in its price increases - is a Rolex a good investment for an American?

The short answer IMO is yes.

In Iceland when the currency was going down the toilet there was a run on Rolex's since their value remains constant. I agree that they can be viewed as a commodity.

[hanto]

Maybe if we can get the "real" unemployment rate then it would show why they couldn't sell those rolex.....

[jvo300]

Originally Posted by Tunacan26

The economy has "changed."

The big question is whether the change is temporary or more permanent. Are we reverting to a world of less overall disposable income (remember that much of the disposable income of the past decade wasnt real - it was fueled by bubbles and credit). Remember life in the 70s and 80s? I do. And it was a long way from the $2 a day cup of Starbucks on your Visa that we live in today.

[Dr. Robert]

Will work for Rolexes.

[gimpex]

Originally Posted by mbrokerny

In Iceland when the currency was going down the toilet there was a run on Rolex's since their value remains constant. I agree that they can be viewed as a commodity.

I would say yes , as well as other things too.

The worse the inflation ( or decreasing value of $ ) the more items included on the list. To use the old example in extreme cases of hyper inflation , whatever you buy today ,will be worth x % more tomorrow.

[prc117f]

Originally Posted by jmed

Hi Gang, I hope this finds everybody doing well. I just left my local AD and I cannot believe what he has sitting in his Rolex case. He has a Deep Sea, Milgaus GV, a brand new "G" serial Explorer II white face, and..........yes A BRAND NEW GREEN SUBMARINER, not to mention the usual assortment. He just cannot sell any of these, now I don't live in a large metro area, but still I just cannot believe he cannot "get rid" of the GREEN SUB. I have purchased all of my Rolex from him (6 total) and would love to have the GREEN MONSTER but my wife would kill me, literally kill me if I bought another. What are your thoughts, does everyone really just have less disposable income at the current time?

John

Artificial demand. In a nutshell.

#1 Everyone and their mother, burgerflippers etc.. had lines of credit and could borrow to the hilt. Driving demand.

(this is why you saw so many Hummers,MB's etc.. on the street, ie: Burgerflippers driving BMWs, loading up on luxury goods and living in a McMansion)

#2 Housing Bubble, even the dead, the mentially retarded, ex-cons and junkies would qualify for 800K homes. This allowed them to borrow via second mortgages and go and spend it on goods and services.

#3 Construction and the goods/services industry exploded servicing the fake economy.

You had a temporary economic growth with inflationary effects due lots of borrowed money floating around chasing a shorter supply of goods and services. Now what you are seeing is the aftermath and the ensuing corrective deflationary effects. (Which the fed is trying to fight to stop the dollar hoarding by injecting more cash via QE to banks and other similar entities)


So how is anyone here surprised??

[GradyPhilpott]

That's a pretty good summation of the way it all went down (inadvertent pun).

[tulsaokusa]

Originally Posted by mbrokerny

In Iceland when the currency was going down the toilet there was a run on Rolex's since their value remains constant. I agree that they can be viewed as a commodity.

A strong commodity - as long as there remains a global demand on the buying side.

[DJN]

Obama

[gmh1013]

Originally Posted by Kuya

As mentioned, this is a buyers market in most comsumables, including watches.

I have noticed that prices for some Rolex models have come down a little, as inventories are stagnant. Of course gold models have risen with the increase in price of gold.

In my opinion, the unemploymet figure is higher than what is being told. I think it is closer to 28%, when you figure in the elements of society that the base calculations don't use. Pay close attention to what the federal reserve says next wednesday, it might be a gamble approach to rates, but the inflation risk is high.

I think this is a good time to purchase a fine watch like Rolex. It has world class recognition and value.

IMHO the unemployment is double what is told which would make it about 18-19 percent......then the underemployed makes up another 20 percent......so
I would make a guess (and I economics degree) of 38/ 40 percent between the two.
Pretty damn bad.
The worse Ive ever seen in my 53 years.

[axxeman01]

Well, I've personally been affected by the economy, and I work for a state university. We haven't had a pay raise in THREE years, and last year we had to take 4 furlough (ie, non-paid days off). In addition to this, all of our fees, parking, health care, etc are going up.

So while I started with a good salary, it's starting to look worse and worse. Some out there say 'be thankful to have a job'. While I am thankful, I'm a kickass employee and I know I can get a job anywhere, albeit I'd have to move which I don't want to.

I sure hope the economy does turn around. In the meantime I am one of those folks who are paying off all debt, hunkering down, and taking a cash position for the future.

- Chris