Is the economy about too take a dump?

Question

With gas at 3 bucks a gallon,rising interest rates,
G.D.P. Down, housing sales falling off.
Is the economy about to take a dump?
What do you think will happen?

Answer 1

The most accurate indicator: the stock market. It tells us ahead what the economy will be. It is pretty crashing now, though not yet deep like in 2001-2002. So, yet, it said the economy will slow down and probably already is.

Answer 2

Is the economy about to take a dump? I think it's continuing to take a dump and it's getting worse. How can it get better with oil & interest up? And the wars? Banned Tommy who answered above says democrates will continue to blame it on the republicans. How can so many be so blind as to not know that during the Clinton Days we were booming? I remember then we had lower interest rates and gas around $1.00, during the Clinton days I'd complain if they hit $1.49, thanks to the current administration and all of it's believers we'll never see that again. How can they blame the democrats? So, yes!

Answer 3

Nope. As long as the fed doesn't continue to raise interest rates (and begins to think about lowering them again.) Things should be pretty flat.

BTW, $3/gallon for gas is no big deal. People in parts of the EU are having to deal with prices as high as $7/gallon...I think Americans will complain and whine but the price will rise to $4 then $5/gallon soon enough.

Answer 4

The stock market has been telling everyone since May that the party is over. It takes a while for the truth to sink in. Move your assets into t-bills.

When the home loan foreclosers start, the snow ball will begin gathering momentum as it picks up speed and mass. Greenspan and Bush have created a mess the U S may not recover from ever.

Answer 5

Uhmmm , I don't believe so, the stock market is steady, Unemployement is at a12 year low, consumer confidence is up, and Orders for retooling are up. Inhflation for durable goods and housing is under control. and the economy grew at 5.5% in the first quarter, one of the highest rates in 30 years. It seems a little dismal because gas is up, but adjusted for inflation it still hasn't hit the highs of the early 70's. boy that sucked gas was Rationed back then and unemployment was near 7% Doomsdayers are trying to scare up the price of gold and push interest rates up. But During the Clinton administration(no blame implied they all do it) They printed alot of money and everyone borrowed till they were maxed out, Now there paying off home loans,credit cards, vehicles and Toys. Remember how long it takes to pay off a 5000 dollar credit card. so Now very few people have money to spend, so they're not buying like they did. BUT the wealthy STILL have money to spend, AND who controls the banks? the wealthy. so they are also controlling interest rates( free money for them).
I think the wars will push Gas higher, more durable goods will sell and government contracts will help to employ more people,and gold will see $910/ ounce. when the middle class starts getting out of debt we will see another boom in the economy. but that boom is a couple of years off. Don't believe these ney sayers, there is still money to be made.work for someone else....get paid, work for yourself...Make money.
Big difference.
Big money has no political party, and we can't have another depression. that's why we were taken off the Gold standard, to prevent that from happening, severe recession? unlikely the fed is making too much money on this war.

Answer 6

I think the next 12 - 24 months are going to give most some unexpected surprises.
Inflation will go up a little due to the new min wage. But that money will get spent and the inflation will slow quickly.

Besides that one element. Everything is about to level off and adjust.

Answer 7

The economy is already in the dumps if you look at things from a perspective of cost of living, mortage rates, gas priceses, or there being little if any decent midle class jobs.

The only reason we dont see any of that in the fiqures is because unemployment is low and the reason its low is because people are working more min. wage jobs.

It takes a second income or a suplamental incone to survive now days. Teenage kids are having to work because their families can no longer support them and stay at home moms are having to go back to work so they can continue to feed and cloth their children.

Answer 8

Probably, as a nation you don't go in excess of 6 trillion dollars in debt and not have problems. Don't worry, our next President will be a Democrat and that is who usually pays down the nat'l debt and sets this country on the road to recovery.

Answer 9

I think it very likely, and maybe not as much a depression as a recession. With Bush's approval rating, we seem set for another round of malaise that Carter described. Hope we bounce out of it as well as we did last time.

I think much of what Bush has done is try to push off this recession unitl after he is out of office, figuring his successor will have to deal with it, and all the better if that person is a democrat.

Answer 10

The stage is certainly set. Bush is entering the last half of his second term (thank god). Housing market is cooling...which usually means retail will suffer....and with gas prices up.....people will have less discretionary income.

Economy is cyclical - this Goldilocks economy cannot continue forever. Inflation risk is higher thanks to oil. Will be interesting to see what the Fed says next week.