From the Overstating The Obvious Department:

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cobraboy

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Link: As elections push fizzles, sales of construction materials plummet 50%

Santo Domingo.- Sales of construction materials have taken a dive for more than one year, falling as much as 50%, as new investments slump and projects grind to a halt, cements makers and hardware stores say.

Two business leaders of the construction sector confirm shrinking sales, and in the case of hardware stores, some have even shut their doors.

Hardware Stores Association (Asodefe) president Domingo Diaz and Dominican Cement Makers Association (Adocem) director Julissa Baez agree that construction and sales have taken a nosedive and that the electoral campaign hasn?t jumped started the economy as expected.


Recently the Realtors Companies Association (AEI) admitted to newspaper Hoy that real estate sales have decelerated, except for properties sold below market prices.

Imagine how bad it would be if it weren't for money laundering.

Anyone in touch with the economy knows there is a LOT less $$$ on the streets than in recent memory, maybe since the post Banniter near-meltdown.

Just as an anecdote, I used to dread going to Ochoa on a Saturday because the place was a madhouse. No more. I see literally half the people, and half the check-out aisles are open. Same with the local ferreteria's. I also have workers stopping by the gate often looking for work.

Not signs of health, much less growth.

But that said, the gubmint has done a fine job of road construction and renovation in the last 3 years.
 

Criss Colon

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I Love It!!!
It is possible to "SPIN" even the "Bad News"!
Last year they reported that "Things" were getting "better" in the construction area because the consumption of "Cement" was up dramatically.
Well,NOT if you subtract the use by the "METRO" and other state sponsered construction. A "financed" increase in consumption.
I think whoever "WINS" the election,may turn out to be the real "Loser".
The next four years here are going to be the worst in rescent memory.The Party in power will take the blame for years to come.
Look at "Obama".He and the "Dems" will probably "Win" again in the US.
But after 8 years in office,even the gullable American public may find the "It's All George Bush's Fault"!!!!
Just a little hard to swallow.
Hope it won't be too Late!
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Chip

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It's bad all over.

The Dominicans that I've talked to that live in the States but have homes here say they can't afford to retire now because the economy is so bad in the States they have nothing to left to save. At last count there were 3 homes on my street in that situation. The remesas from the US have dropped drastically no doubt too.
 

Criss Colon

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But Chip,This is "DR1",and we live in the DR!
I guess you have your "It's worse in the USA" agenda to follow???
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william webster

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I have been saying that all winter.

I go to Sos/Cab infrequently and just pass through but I do notice that its easier to pass through -- way less traffic/people.
Noticably so.

All the towns that I frequent say the same thing - business is slower this year.

The Euro has dropped.
US isn't strong enough
Canada s/b OK but they don't spend freely ( I'm CDN, No rebuttals, pls) and are a small segment.

Isn't Euro the driving force here?
I'd be interested to hear.

Hey, Frank 12..... tear yourself away from the comic books and tell us how the bar business is.:glasses:

What about LT? The Domincans from SDQ can't keep that place alive by themselves.

Whassup???
 

cobraboy

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The DR is downstream of other economies, whether we like it or not. To use a tired cliche, when the US (or Europe) sneezes, the DR catches the flu...

IMO, what's happening in both the states and Europe is the massive Keynesian spending is over and the money multiplier just hasn't happened. Not that the failure shocked non-Keynesians. It didn't. We warned.

But the debt remains.

I don't see a way out. Certainly politicians don't have the answers.
 

zoomzx11

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This Samana Santa was the biggest in years in Sosua. Every hotel room, every A1 filled to the brim. Beach business was booming and every colmado made money.
Either drowning their sorrows or celebrating there was a lot of drinking.
 

william webster

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When you're downstream, you get the sh!ts.

I think the Euro collapse has had a bigger impact than we know.
Add to that the airfare increases.

The Euro is lower, the airfare is higher.... it can really add up for the budget traveler.

And ain't this budget heaven ????

The Euro will not recover quickly,,,,,,,,,,, tighten your belts if in the tourist sector... is my guess
 

william webster

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This Samana Santa was the biggest in years in Sosua. Every hotel room, every A1 filled to the brim. Beach business was booming and every colmado made money.
Either drowning their sorrows or celebrating there was a lot of drinking.

I made that observation in the death over/under when it was prognosticated that fewer people will travel due the poor economy.

The great Depression proved that people wanted to "escape" life......... the movie indusrty went up dramatically.

I think they did want to forget life by drowning their sorrows.

My guess........... just a guess..... but I hear the new autopista was a disaster at the toll booths - HUGE lines to get through
 

cobraboy

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The Euro will not recover quickly,,,,,,,,,,,
I doubt it will EVER recover. Not ONE "austerity" measure will work because they ALL continue to increase their debt at a rate higher than economic growth. And look at the threats of riots in the streets in Greece over the smallest talk about reduction in Free Cheese.

Not sure it's any better in the states IF the current Federal trend of increased Free Cheese continues.

The difference between the states (I include Cananada there; it's "America's Hat" after all...:cheeky:) and Euro is Euro has had declining individual productivity for years and private sector growth has been stagnant; high unemployment is the "norm" there and much of the economy has been based on gubmint growth...paid with borrowed currency. The US still has some capitalists willing to invest, it has (so far, but it's changing) not fully funded growth with gubmint: the private sector still makes a difference.

I'm not so sure the Euro's have the capitalistic spirit enough to create the wealth necessary to grow the non-gubmint economy. And in another generation the same may be true about the states.

Without the non-gubmint economies, the private sector, growing faster than than the CoL, the disposable income necessary to have folks travel to the DR is reduced.

We all could be screwed. But a free chicken in every pot was a blast for a while...

Free%20Cheese.jpg

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Chip

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The difference between the states (I include Cananada there; it's "America's Hat" after all...:cheeky:) and Euro is Euro has had declining individual productivity for years and private sector growth has been stagnant; high unemployment is the "norm" there and much of the economy has been based on gubmint growth...paid with borrowed currency. The US still has some capitalists willing to invest, it has (so far, but it's changing) not fully funded growth with gubmint: the private sector still makes a difference.

How can this be????

greydread says the US economy is booming, unemployment is low (only stupid people can't find a job) and the future is as bright as Hades is hot because Obama will be in power for a long time!

I can only expect that Obama went to Leonel's' school of politicking; give money and positions to your friends and blame the previous administration all the while trying to convince the electorate that their bellies are full and down is indeed up!
 

Barnabe

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I doubt it will EVER recover

The European economies are bad, or collapsing if you want, at least for many of them.

But that the euro has collapsed, I don't know where you saw that. i am talking about EUR vs USD or EUR vs DOP.

Look at a multi year chart and you will see.

So the weakness of the euro is not a reason for DR slowdown. The weakness of the economies may (partially) be

Barnab?
 

cobraboy

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The European economies are bad, or collapsing if you want, at least for many of them.

But that the euro has collapsed, I don't know where you saw that.

Barnab?
Never said collapsed. I said eventual. I don't see how the EU stays together. Eventually Germans will tire of having to pony up to keep it together.

The fact that private Greek bondholders were screwed over should tell you everything. They have tapped out the private sector for continued deficit spending and high bond rates don't raise the necessary $$$. Look at the numerous, common auction failures.

I also say the US may eventually collapse for the same reasons.

There are always folks who whistle by the graveyard...
 

Como_un_cameron

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Communism had some time, ideas were ideal, until nobody wanted that ideal no more.
If communism worked, everybody had work and a nice family house and a car.

Capitalism worked great, until the rich declined the thought of sharing anything.
Everybody was working but you could not afford a family house and a car no more.
Like the people driving Hummers in the DR, and proudly inform you that they are paying the watchy man only RD$500 a day.
Companies like BMW, Audi and Porsche making the best year profit ever......

Decency is failing now. And the whole world is coming down on both poor and rich.

The only way out.......... I know but you don't wanna hear it.

And I'm no lefty or righty, just observing with an open mind.
 

Barnabe

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Never said collapsed. I said eventual.
True, WW said "collapsed", you said you doubt the euro would ever recover...

I don't see how the EU stays together.
Maybe because you're not European.

Eventually Germans will tire of having to pony up to keep it together.
I am not sure things are that simple.

There are always folks who whistle by the graveyard...
The situation is really bad, we all know that. I don't know who is whistling, nor where the graveyard is.

Barnab?
 

william webster

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Never said collapsed. I said eventual. I don't see how the EU stays together. Eventually Germans will tire of having to pony up to keep it together.

The fact that private Greek bondholders were screwed over should tell you everything. They have tapped out the private sector for continued deficit spending and high bond rates don't raise the necessary $$$. Look at the numerous, common auction failures.

I also say the US may eventually collapse for the same reasons.

There are always folks who whistle by the graveyard...

The upcoming years/months/whatever will be interesting to say the least....... frought w/ uncertainty.

Pi2 - crazy like a fox - would advise you to go to land, gold, etc. for security.
Not a bad idea but you need to be quite rich to dump your dough into nonincome producing assets.
You need to eat your young to survive.

There will be a solution......... hopefully a palatable one.

Shrimp Cameron........
The history books will devote less than one page to communism........ it lasted less than 100 yrs. in practice and even that was a fraud - the big shots lived like big shots..... the lower class suffered as always.
 

william webster

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Barnabe
I said 'collapse' in context.

The Euro has fallen from what? $1.60 to $1.30 ( yes, I do it upside down)

Thats 20%.... not a total collapse, but a strong weakness.

We Cdn's know about dollar fluctuations vs the US $.

Nobody was happy at 61 cents to the US.
I grew up with the Cdn $ lording it over the Us $

Not so any more.......... happy to be even these days...........

Say it ain't so, Joe
 

Como_un_cameron

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Shrimp Cameron........
The history books will devote less than one page to communism........ it lasted less than 100 yrs. in practice and even that was a fraud - the big shots lived like big shots..... the lower class suffered as always.

OK Willie...:glasses:
Who wrote those books?
And like you said the big shots lived like big shots.
Do you see the not so different???
 
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