I dont understand is it getting better or worse?
Do you think consumers are going to start really buckeling down their spending now?
2007-03-14 10:01:07 · 4 answers · asked by ? 1 in Social Science ➔ Economics
Just remember, the last time that this happened is when Bin Laden filled his coffers with bargains, and we all know the result then!!
2007-03-14 10:08:12 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Our markets are reacting to foreign behavior. When the Chinese speculate about a change in their governments behavior and then decide to sell, we worry that they know something we don't know and we follow their behavior. A lot of times there is no solid explanation for their actions and we are the "monkey see, monkey do, types". You have people like Alan Greenspan using the "R" word (recession) and that spooks the market. Plus the market every so often re adjusts itself (called a correction)when a lot of hot air exists or "irrational exuberance". Yes, the housing market has been a dark spot on the economy and this destroy confidence levels which can damage an economy. There are not always clear answers to why the stock market moves like it does, which is why it is a short term gamble, but viable in the long run.
2007-03-14 12:31:17 · answer #2 · answered by econgal 5 · 0⤊ 0⤋
Lots of uncertainty with the housing market and interest rates. There is projected to be many foreclosures .... millions refinanced at higher rates ..... and a terrible slump in the housing market ... with perhaps depressed prices.
We have to pay for the "sins" of creative financing by the financiers and bogus "qualifiers" that ballooned the price and sales of homes the past few years.
2007-03-14 11:03:05 · answer #3 · answered by burlingtony 2 · 0⤊ 0⤋
sell sell sell
2007-03-14 10:04:50 · answer #4 · answered by wally 3 · 0⤊ 0⤋