2007-08-13 06:47:14 · 4 answers · asked by Anonymous in Social Science ➔ Economics
And why? when? Will it be global?
2007-08-13 06:47:45 · update #1
Not a depression, but a recession is looming. Why? The crisis in the sub-prime mortgage market is causing a severe tightening of the money supply. The FED is moving rapidly to correct it, BUT there are already inflationary pressures mounting. The FED will be forced to deal with the threat of inflation and tighten money supplies at the same time that the money supplies are tightening from the mortgage crisis. Thus a recession is directly ahead.
This is bad if you lose your job, but it will be good for the overall health of the economy. We need a clearing of the decks on inflationary pressures and a correction from the over-exuberance of the house buying market. Consumer spending in the US has been off the charts for several years, and we are making these purchases with mounting personal debt.
People need the sober reality of an occasional recession to keep them from spending irrationally (which we have been doing).
Hope this helps,
Good luck!
2007-08-13 07:46:47 · answer #1 · answered by Yo, Teach! 4 · 1⤊ 1⤋
yes
Because USA is going to enter on a (not depression) recession and when USA sneeze all the world get a cold.
2007-08-13 13:57:05 · answer #2 · answered by dsro 3 · 0⤊ 1⤋
Yes, I'm broke and bummed out already.
2007-08-13 17:14:55 · answer #3 · answered by righteousjohnson 7 · 0⤊ 0⤋
no
maybe a recession in the US
2007-08-13 14:00:44 · answer #4 · answered by haggismoffat 5 · 0⤊ 0⤋