how is that the global economy is the best it has ever been and ours seems to heading ito a recession?

Answer 1

What you "seem" to think is not true. In fact, the American economy is doing very well. Just because the media elite do not want to talk about a good economy during Bush's presidency, doesn't mean that we are going into the toilet.

I've noticed that, for the most part, only bad economic stats make the news these days, while positive stats (especially the low unemployment rate) go almost unmentioned.

It was the opposite when Clinton was president...when they reported the Dow Jones average on every news show every night, because most of the time it was going up. They stopped doing that when Bush took office, and then only reported the Dow on those days when it went down. That general trend continues today. Of course, they were obligated to report the record setting marks on Wall Street a couple of weeks ago, but since then they've been all over the market corrections and trying to predict disaster.

Answer 2

That's like asking 'how is it that global temperatures are rising, yet we've had a mild summer this year in California?'

Economies are still regional, and, for that matter, can be 'local' to an industry or a sector, even in our increasingly globalized world.

Though it's too soon to say if America is headed into a recession, the factors that may be pushing us that way are regional, specifically, it's the real estate market and financial industry. Whether those problems poleaxe the whole economy remains to be seen.

Answer 3

The housing market (particularly the sub prime market) has been carrying the economy of our country on its shoulders for years now. Flipping houses between investors playing the market for all it is worth has been creating jobs. But with housing prices so high new home owners are getting scarce. To make matters worse we are seeing the problems with the sub prime market. The fraud committed by both lenders and borrowers has come back and hit hard. In fear banks are tightening credit causing investors to panic and close their wallets. Without the ability to borrow companies must rely on their own resources but they have gotten themselves so far into debt that they don't really have any. The thought that mortgage companies could go bankrupt has cause many on Wall Street to sale their mortgage company shares and that has caused the markers to drop. As others hear of things like the Dow Jones falling they panic and sale their stocks. So now we have both the mortgage companies and the stock market in a downward spiral. So the main differences between the current economy and the economy of the 1920's is that its the housing market instead of the steel industry and creditors haven't called for their money back yet. We even have people borrowing more money than they are making. Their are processes in place to prevent events from escalating as quickly as they did back then so lets just hope that it gives us enough time to turn it all around and that our economy has recovered enough in other areas to pick up the slack.

Answer 4

Good for all of you who don't seem to be experiencing an economic downturn in your state...but here in Michigan, we've been experiencing recession for years, due to the downturn in the auto industry.
My feelings on a "global economy" are that as the rest of the world comes up, the U.S. goes down. Now, I don't wish poverty upon the world outside of the U.S. But our middle class is heavily dependent on manufacturing, and when our manufacturing's gone, so will the middle class be. We've got a good start. How many "service jobs" will be viable when people cannot afford the services they offer?
I don't expect that Mexican, Chinese, and other underpaid workers will continue indefinitely before they start demanding liveable wages and unionizing. Then perhaps these greedy corportions who want to make record profits on the backs of grossly underpaid employees will realize that the United States provided them with the best and most hard-working workers the world has to offer.
Aside: Regarding Mattel; according to ABC News, it costs 35 cents to produce a Barbie Doll in China, which Mattel then sells for $20 in the U.S. That's a $19.65 profit Mattel makes on each doll; whatever happened to corporations making a bit less profit, and staying loyal to the country of their origin? Or do I live in Shangri-La?

Answer 5

That's a very good question. In my opinion, global economy hasn't been doing all that well, the gap between the very poor and the very rich is wider than ever, and the middle class seems to be slimming too. Global economic activity is on a fast track, but that doesn't necessarily mean that all is going well. I live in Belgium, and we are also struggling with outsourcing of jobs, illegal immigration, bureaucracy and so forth.

Answer 6

The global economy is not at its best and is headed for more downfall as natural disasters takes place, which often destabilize smaller countries.

As for the US and the stock market I believe that was one of the wisest choices made by our President,"to not bail out investors from the plummeting market". When one gets involved with the stock market we all know we take a risk, and we all assume that risk. Therefore the American tax payers dollars should never be used for CORPORATE WELFARE and bailing any of them out of their plummet, plain and simple.

Answer 7

I think the main reason is that America has lost its balance, corporations control everything, and when they have control of the government then have control of the media to hide their manipulations through propaganda, then it will kill an economy in a short time.

anyone that thinks the american economy is even ok is living in a fantasy land,,,,
if you are not preparing, i feel sorry for you..... 1 to 3 years unless the next president performs a miracle...

Answer 8

About 1 month ago, the US stock market (DJIA) peaked at an all-time high, the recent pullback is due to fear about the sub-prime mortgage & credit markets, coupled with some profit taking after the huge gains in the stock market.
Markets around the world are also tracing back, not just in the US.

Answer 9

because we have been propping up the foreign economy at our expense.
We have raised the value of other countries currency while depreciating our own currency. Now, other countries can spend more money because they have more money while Americans can spend less because they have less. The intention is to have othe countries buy products and service from the USA, so, it's like a servant thing. You work for me, so I give you credit to buy things in my store, which requires me to work you more but everybody benefits eventually, right now though, we are forking out the dough and waiting for the dough to come back to the USA.

Answer 10

We are the global economy.