the stories in wsj and the economists, to name a couple, hint that we are headed for a great fall. you know like humpty dumpty. do you imagine it could really happen?
2006-12-26 09:07:24 · 5 answers · asked by Anonymous in Social Science ➔ Economics
If enough people choose to save instead of spending or borrowing, then yes the US will slide into a depression. 73% of the US economic sytem is based on consumer activity.
At this time they are borrowing more than they are earning.. this is highly indicative that there is mass belief of future inflation.
Buy now before the price goes up in 1, 5, 10, or 15 years syndrome.
Wages have been stagnant for years.. all except for the disgustingly rich who are manipulating their earnings to rake in millions every year.
One last indicater that might mean something.. [the jury is still out on this one] total debt dollars has exceeded the annual GDP by 300%. The last time this ratio was encountered was 1930-1933.
Personally I expect massive inflation before a depression.. the government already hinted at flooding the market with cash to keep the economic machine well oiled.
Does this help any?
2006-12-26 10:01:57 · answer #1 · answered by Anonymous · 1⤊ 1⤋
Well anything's possible but no - that's EXTREMELY unlikely. First, understand that there are ALWAYS experts on hand predicting doomsday for one reason or another -- that's a regular item in all business newspapers and magazines and on the bookstores. I've had a steady diet of that stuff since I started seriously following economic and market news 15 years ago.
This is just more of the same. In reality the worst case scenario is a mild recession -- and the odds of even that happening are probably no greater now than they ever are. Actually we've already seen the worst case scenario -- it was 9-11 ... and that led exactly to a mild recession and a strong market correction.
I'm not sure a real depression is even possible without a lot of bank failures (which implodes the money supply), and there is zero chance of any bank-failure epidemic breaking out, short of a meteor plowing into North America.
2006-12-27 02:40:58 · answer #2 · answered by KevinStud99 6 · 1⤊ 0⤋
The last depression we had in a developed country was the great depression, more than 70 years ago. Prior to then, depressions were becoming a regular event. However, as a result of that depression we learnt a great deal about the business cycle. We now have a very good understanding of what causes such depressions, and have the institutions in place to prevent and cure them. Thus, a depression is not likely to occur in the future.
2006-12-26 18:17:09 · answer #3 · answered by Anonymous · 0⤊ 1⤋
they have replaced us ..and if it doesn't work they will sell the country to who ever wants it..we gave away our right to our country to people who will never ever go hungry from what they do, i was sent to live during world war two to a place to die i was a month old and was unwanted, then when Korean war came i lived on c rations, then i was deaf and was doing jobs other Americans didn't want now I'm here and the bells don't toll for thy
i think i happened along time ago, if u are just getting the hints~~lucky u
2006-12-26 22:51:54 · answer #4 · answered by bev 5 · 1⤊ 0⤋
This has been predicted many times since our last
depression in 1929 and the economy has had its
ups and downs but so far, we all predictions of doom
have proven untrue...
So no, I don't think the sky is falling...
2006-12-26 17:17:22 · answer #5 · answered by Anonymous · 0⤊ 1⤋