United States Heading towards a Depression?

3 months ago the exchange rate was almost 1:1... at the moment its very low, it hasn't been this bad in a few years.

 

Maybe, maybe not. Housing and housing costs are dramatically local or regional. Suppose there was a huge burst in employment and employment opportunities in and around Denver. The Denver market would start getting stronger.

This particular area would be considered one of the outlying suburban areas of Washington DC. Activity in this county is unusual compared to the rest of the region. Within the greater region it got hit harder with more foreclosures than other parts....and at least for a month or two it is seeing a lot of investment. Heck, those who are buying are buying at low prices. Are they low enough. I don't know that yet. Time will tell.

 

All the experts are saying they expect prices to drop at least 10-15 percent nationally and to not hit bottom until mid to end of next year. In california at least, I think it could go alot more than 15 percent in decline.


No one knows how bad this is going to get, but from where I'm at in california it certainly is getting uglier even as we speak.

As long as Libor rates are high, a sign of tightened credit, it's going to be hard to keep prices from stabilizing because no one will be eligible to get a house cause the application won't go through.

 

If any of us actually knew for sure we'd be out there making millions, not debating about it on a forum

 

LOL well you also have to have a lot of money to make money too.

 

To make millions yeah. You can make a few grand in a month no problem.

 

Yeah, but who wants to risk money on the stock market or commodities if you are barely getting by. Its the rich people that can gamble in investments.

 

U.S is still very rich. Their "depression" is still way over a wealthy mark than the third-world. Never a question of financial emergency what so ever

 

USSR was very rich , one day.... only one day is enough.

 

The slowdown in automobile purchasing will have a serious impact on the US economy going forward. It doesn't just impact Detroit and the automobile manufacturers.

USA Today had an article today on problems facing auto dealers.

Per the article, the entire auto industry accounts for 10% of US employment. That is huge. The auto dealer industry critically relies on credit. It finances new car inventories, carries lots of land, upon which it probably has a mortgage, and relies on financing to sell cars. Its seriously threatened by the credit crunch.

I was surprised to see this factoid from the article....

101% on a loan. Jeez, more terrible lending policies both for the lenders and the borrowers. It leaves no room for problems or mistakes going forward.

Just one more glitch in the fundamentals of the US economy.

 

http://globaleconomicanalysis.blogspot.com/2008/10/something-for-nothing-vs-paradox-of.html

 

Russia was broke and auctioning off rides to space, and selling subs to people that don't know anything about subs to raise money, that is until oil got high enough to make their worthless over priced oil worth obtaining, refining and delivering. As oil prices fall, so too does Russias inflated wealth.

It was good while it lasted, I guess.

 

Well, thats better than getting rich from loans you wont be able to pay back from China.

Enjoy it while it lasts

 

That's about 500 billion dollars. As a percentage of GDP, its hardly something that will not be paid back.

Hell, compare that to debt held by the US public, its a pittance in the over all scheme of things. What exactly is your point?

Russia foreign debt grew by 48% in 2007. Even with all that oil money. This is mainly because most of those borrowing were in the private sector and not sharing in the governmental monopoly of oil revenues.

 

The day the US gov pays back its debts is the day pigs fly... though the other countries are retards for lending/giving it.

http://www.budget.gov.au/2005-06/overview/html/overview_07.htm

Yay Australia! LOL @ Japan, they look like they're drowning in debt worse than the US.

 

Just say a pig fly. How bout' you?

The US is paying its debts, with interest.

 

Well that's news, last time everyone else on who wasn't stoned checked, the US is going further into debt, not getting out of it.

 

Did you read what I said?

 

Obviously you didn't read what you said, because that is the opposite of what's happening.

 

I was wondering if anyone else would catch that.

It is remarkable people in this country have continued in such blissful ignorance, since 1971 (dropping the gold standard).

It can't continue indefinitely and won't.

One day, everything seems fine, the next minute, the US government declares bankrputcy and blames it on << insert some group/cause/product/act/religion >> and declares a << WAR ON whatever >> because of decades of their own incompetence.

Unless the voters wake up and vote their representatives out and demand accountability, this is inevitable.