Will a major recession occur in America by the 2007 winter?

Question

I have been reading articles about the possibility of a major recession taking place in America by the end of 2007. What are your thoughts on this? Will it happen? How can the average American help to avoid it?

Answer 1

There are three or four major concerns in the short-term/immediate future.

1. The sub-prime credit problem, this appears to be a growing concern which hopefully can be contained.

2. This directly affects parts of the housing market which have been in a rather unsustainable path for several years.

3. The war has continued to draw resources, manpower and cash from the marketplace, the continued hostilities in the Middle East have not helped markets.

Longer term, the US is actually well positioned in many respects.

1. Diverse industrial and educational resources always allow the US to adapt to ever changing market factors.

2. Relative to other great power industrialized nations, the US worker is CHEAP.

3. Coupled with relatively low cost (vs. English, Swedish , German or Japanese workers), the infrastructure of the US is very widespread and in generally good and serviceable if not excellent condition, whereas in many parts of China or India or where-ever the infrastructure is ad-hoc and haphazard - to say the least.

Answer 2

With subpriming lending and credit problems, the future does not looks too good for US. Moreover, the housing sector that seems to be driving most part of the US economy is predicted to be a bubble that is going to burst. Also, on the other end, the war is sucking money in such quick rate that a complete pullback of the US troop is needed but very difficult with the current administration. So with all the dark cloud over the head, do you think you are going to expect sunshine?

Say your prayer every night. Be thrifty and save every penny possible. Always try to upgrade oneself, so one can remain competitive at work. Last but not least, good luck.

Answer 3

Recession is not likely, but the days of 4% growth is over because the housing delusions will contuine on. Recession is possible but not likely, but any economist is probadly right now arguing with congress not raise the puntitve tariffs on China im sure. Protectionism will cause a recession, and not the housing meltdown because people like to buy useless things like MP3 players, Chinese made mopeds and other goodies. America will not have to worry about recession, but the days of cheap fuel at the pump is over thou.

Answer 4

i could first blame the terrorists themselves. yet i could additionally evaluate our human beings's (customarily liberal) opposition to particular issues like cord tapping and different issues they experience violate our shape, that have looked as though it may maintain out united states rather damn risk-free in view that 9/11. i've got faith that our united states could desire to be on the offense and do each and every thing necessary to ascertain our protection in the different case we are able to be seen as a weaker united states who waits for issues to take place and then reacts. each and every thing must be so politically staggering presently because of the fact if each and every physique is indignant then all of it blows up. human beings could desire to awaken and see the international we live in. The shape replaced into written over 2 hundred years in the past at a time while there have been no terrorists nor have been there the technologies we've at present. i've got faith that the form could desire to alter somewhat in accordance to the time and the international we live in.

Answer 5

Maybe it wont get to that point, although some sectors are having problems but I think it wont be a recession. But economy will likely be struggling until H2 next year. Maybe wise thing to do is to invest in Euro's

Answer 6

Trying to predict economic future is pretty difficult. I've seen very smart people get it so wrong, and others right on the money then screw the goose later on.

If I were a betting person, I'd put my money on China's future. Despite the problems they are having with quality control, that will be short lived. China learns from its mistakes and is unlikely to repeat them.

Peace

Jim

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Answer 7

Analysts from Asia think that US won't have a recession, in fact, economy is likely to improve in the near future, especially after the elections. All our money is on it.

Answer 8

It will probably start on Monday with the announcement by Bear Sterns.