harper's index says " number of consecutive months american workers spent more than thier wages : 20 . number of month this has happened before , since the great depression : 0 " . over 2 trillion in credit card debt . things look bad ahead , unless you're a war profiteer .
2007-03-01 08:25:20 · 9 answers · asked by Anonymous in Politics & Government ➔ Government
Greenspan does.
2007-03-01 08:57:00 · answer #1 · answered by Carlene W 5 · 0⤊ 0⤋
Debt has nothing to do with a depression. The great depression was caused by counter Federal Reserve monetary policy. In 1928 the economy was slowing down the Federal Reserve instead of lowing interest rates to stimulate the economy they increased interest rates that accelerated the stockpiling of inventory of goods across the country.
Also, having a policy based on gold pricing has another problem at the time instead of having a flexible exchange rates. The tariff's act in 1930 Soot Hartley Act damaged the economy too. The economy would of been in recession instead of a depression if they did not make mistakes back in 1928 with money policy.
I don't see great depression occurring here, but I do see lower economic growth around 2.5% a year for the next couple years.
The debts occured by these Subprime loans floated for housing are about 6% of the mortgage market actually; as a result, These nasty diabolical loans will not really affect the overall market because the other sectors of the economy are running smoothly.
The problem is the Federal Reverse should probadly lower interest rates at this point with inventory pilling up nationwide. Inflation is concern, but inventory levels pilling up will create headaches for producers needing to clear out goods to get cash to invest in new machinery. Trade off for higher inflation probadly worth it here since dont wanna idle the economy because of just a few sectors. There acutally delfatory factors in the market right now outside of oil too, so the best policy would be to reduce interest rates to keep growth above 2% or else raising rates or staying flat on interest rates will make the econony grow 1.5 to 2.0% a year, but the Feds will likely lower rates to get the economy growing in the 2.5%.
2007-03-01 11:37:58 · answer #2 · answered by ram456456 5 · 0⤊ 1⤋
when the feds do another 911 event. declare Marshall law,fill the concentration camps their building right now and declare war on the country they pick to be the ones that did the next disaster,. then their will be prosperity for all. well except for the true Americans in the concentration camps.GO FEDS.!!.Yes. lets take over the world.the war of civilizations will be fun.
theirs many positive aspects to nuclear war.less population. the rebuilding afterward will give the illegals many jobs.I say yes to war.
2007-03-01 08:32:17 · answer #3 · answered by Anonymous · 1⤊ 1⤋
I think that a depression is looming, but it's because our currency is backed by our national debt rather than precious metal.
2007-03-01 08:35:15 · answer #4 · answered by wrathinif 3 · 0⤊ 0⤋
No, that won't make a great depression, just personal depression.
Just because we live beyond our means does mean the economy is depressed. In fact we are inflating it with all this make believe money.
It's when we don't spend that we'll be in trouble.
2007-03-01 08:30:19 · answer #5 · answered by ♣Hey jude♣ 5 · 0⤊ 1⤋
No depression is looming. You can make it happen by expecting it.
2007-03-01 08:38:44 · answer #6 · answered by kayxa 2 · 0⤊ 0⤋
Yep, it will start about the time of the next elections.
2007-03-01 10:25:42 · answer #7 · answered by Kevin A 6 · 0⤊ 0⤋
No one with half a brain cell functioning.
2007-03-01 08:35:14 · answer #8 · answered by hunterentertainment 3 · 0⤊ 1⤋
things are great with ME! i WORK and live within my means, with no complaint.
2007-03-01 09:00:37 · answer #9 · answered by patriot07 5 · 0⤊ 0⤋