I'm not too great with economy or anything so many hoping for some input or insight some some smart fellows in dp here to share. So as many people may already heard US might go down on a hard recession. The stock market is already falling in the US and this is affecting a lot of world, as most places stocks are falling too. I'm thinking there will be a drop in the currency again, I live in Canada and just recently Canadian dollars was hovering over the USD and now the USD is larger again, but will this stay. I'm thinking that if the US run down on a hard recession, Canada would also follow. Hopefully it won't become a depression or anything too severe. So what can we be expecting here. Reduce spending maybe, lowered interest rate to increase it, creating higher inflation rates. More money shifting for them the poor to the rich. And possibility of a drop in the currency. Actually most likely. This actually might even affect the 2008 Olympics in China, that would be bad. If they make like a loss there due to less spending = less traveling then the world economy might be even worst shape. Like I said I'm not an experts on this topic, and even experts often disagree on economics. So lets hear some opinions. Is it a good time to be investing right now?
Like it or not, the world market still mimic what happens to the US economy. I am not sure if you were around during the 1987 Stock Market crash, the day was dubbed Black Monday. The impact of the crash causes many people to have a huge portion of their wealth wiped out especially those who invested in the stock exchange. Let's skip the economic class and so on here. What would happen in the crash is companies will see their worth fall and there will certainly be belt-tigthening by the company. Some companies which cannot weather the reduction in spending would inevitably close down or downsize. When that happens there would be more people who would go unemployed and when they do it would affect the economy as more people would draw on unemployment benefits. The rich would get poorer and the poor would get even poorer. The best case is that you will expect no bonuses or a pay cut, worst case is that you be out of a job. Since there would be less companies around which has vacancies, there would be more belt-tigthening on the individual level, with less demand, companies would then need to downsize further. It is certainly not the right time to invest because stock prices may not raise above the current prices in the forseeable future. The effect of the crash in the US would effect all open-economy countries especially those which depend on the US for trade.
The government will step in if it gets any worse, Even if the fed cut rates still wouldn't help to much.
If you are referring to online. Nothing. We had a recession before in the early 90's, and we're still here. Sales will continue as always. I am sure there will be some markets, or niches, hit a little different then others. But all in all. Nothing for you to be chicken little over. 2 cents.
That's what I'm saying, if the US hits a recession the world would feel it too. But what you said the rich would be poorer and the poor will be poorer is not necessary true. In many cases yes, and the poor always suffer the bigger hit. Government is going lower its interest rate to increase spending to stimulate the economy so business won't close or downsize as much. What happens is that interest rate decreases meaning business gets a lower borrowing rate and the average joe's that keep their money in the bank, basically lending money to the big corporations will get less interest money while the companies get low interest rates. On top of that what happens is the little guys sell their stock lose money, sure the companie's stock lose value. But what do they do? They buy even more stock when its low, because they have the money, And when the market recovers, they have even more money and the poor ppl are left with none. That is what happens, so its not necessary the rich get poor and the poor get poorer in the longer run. Your looking too short term. Plus it takes time before the market shifts back to the normal inflation rate. Meaning for a few years workers and labors, the average people will be earning less, because money is inflated. Then after 2 or 3 years when every gets their raises, you'll start getting as much as your making now. So basically whenever there's an inflation, or I should say unexpected inflation, the poorer ppl get even poorer.
Bush had stepped in and that caused the DJ which was initially 180 up to go down -60. last Fri. Monday is a holiday for the USA markets, but Nikkei and Hang Seng was doing terrible at the moment, hope that the next session for the USA market inspire some confidence.
I'm thinking this might been a trigger from the Iraq war as so much are being spent over there or at least partially.. And as we saw the USD dropped like couple months ago, which makes people have less confidence in the USD.
The USD being so low is bad business for me, I lose money from this being in the UK. So yes it does affect us guys working on the net, I dont know how much it would affect the UK as a whole tho.
That has some impact but the real issue is the fact that tons of people are well on their way to losing their homes... Depressed housing market = recession
Pick a processors that allows people to pay in their native currency. Yes, if you want to get into the bean counter statistics, it effects us ALL when one countries up, or down,... the UK, Canada, US... however if you worried about counting those pennies and that's going to make or break you, then you need to get into another business. The fact remains there will ALWAYS be one country up, or down. It's the way of international business.
It's really not as scary as it looks since there's a constant inflation rate but ya.. that looks a bit too much. I heard before that if the US pays off 1 million a sec or something, it would take 100 years to pay of it's debt.
I've been watching the stock markets and can say that the US stock markets are not the only one that is falling. The stock markets are falling all around the world. The markets probably will go high so investing in stocks at the moment probably will not be the best thing to do at the moment. I think it's better to day trade stocks when the markets are like this, but then you should only do that if you already know how the stock market works, good at economics, and have a good amount of experience already. It's quite annoying that the USD is getting lower as it gives me less earnings, but I am prepared for the worst.
No. The market is probably years away from bottoming out. Now is a good time to invest in CD's that pay guaranteed income. I pulled out of stocks/funds when the dow was 12,800 (about 3 months ago). I'm glad I did. I would have lost a lot of money. Real estate in the US will be depressed for years, which will weigh heavily on the economy. Once the foreclosure mess works itself out the baby boomers will be moving in with their kids, assisted living homes, nursing homes, and some deaths. This will dump even more homes on the market and drive sale prices down. Then about that time, the taxpayers will get hit with a large tax increase to fund the baby boomers social security, medicare, medicaid, etc. This will further depress the economy. As China continues to grow, it's huge population will start driving more and heating/colling their homes. This will place a high demand on energy, which will drive up prices. These problems are dealt with on the federal level, and more problems exist for state, county, and local governments. For one, lower home prices will mean lower property tax revenues. And this will drive them to try to increase taxes. I don't see much hope in sight - I just see hard times ahead. You can help protect yourself against bad economic times. For one, diversify your skills. If one job/business dries up you have skills to make money elsewhere. Don't take out loans. Now is not a good time to commit to a new home loan or car loan unless you have a lot of cash stashed. Be frugal. Don't spend money on petty things. Save as much money as you can. Keep some cash on hand. Should banks be hit even harder, withdrawl limits may be imposed. And on that note, make sure you have some food and water in reserve. Should withdrawl caps be imposed, at least you will be able to survive. I am not an economist (maybe a pessimist ), but I see a very prolonged recession and possibly a depression at the end of this road. There are just too many large economic problems facing consumers and this country as a whole. And with a very difficult labor market, there are few ways for the low skilled worker to work their way out of this financial mess.
Best thing I ever heard was "I refuse the join this recession. You can, but I wont!". Its simple, if you except that your going to lose money, you already lost it. If you look at it as if your the smaller dog, and the bigger dogs on top are going to lose money, that means you have plenty of room to grow and take all their customers.. Stocks are down, houses are down.. If you got the money to keep buying in, then go at it, and become Trump, however never except that its all doom, just expect that your going to have to work harder, and knockoff a couple competitors.
Anyone know when all this will be occuring? As in, an ETA. I know its impossible to predict for sure. I'm a high school student, how will it affect us?
honestly..its our own damn fault..economists predicted it and we just didnt listen. well atleast some of us didnt...I started listening about one and a half years ago..my debt was immense but once I heard that s**t was going to hit the fan I stopped spending as much...I put most of my earnings into paying off the debt and have cleared up a huge chunk leaving me with just some property and a small car payment to clear off...I tried warning family members also but no one other than my spouse listened... at this point I cannot say what I have done is what will help me when the going gets tough...who knows for once Bush may pull it off...we shall see...my point is that the warning signs were there...we just didnt listen
Start voting for the people who can fix our economy. I hate to say it, but its time for a democrat. We need to accept that to fix the crisis at hand we will have to suffer a little. A little suffering is better than uncontrolled mayhem.