Could America be falling into another Depression?

Answer 1

Recession like the one we had in the early 1990s when George H.W. Bush was president. That was a nasty one caused by the collapse of the stock market in 1987, then the collapse of the Soviet Empire in 1989. For a depression to hit us, it would also have to hit Europe and Asia. That would be too radical and could lead to dire results. More like a recession since the federal bank reserve is now pumping more than $100 billion into Wall Street. That move will come home to roost one day.

Answer 2

No, but we could be heading into another period of stagflation (similar to that of the 1970s). The last stagflation was caused by the government borrowing money to fund the Vietnam War (which costed about $550 Billion in today's dollars), and then printing dollar bills to pay back our debts. This caused wild inflation, which caused companies to shorten supply dramatically to retain prices. They saved money by laying off workers leading to high unemployment (stagnation). In the last 6 years, we've borrowed over $900 Billion (and that is not a typo) from China! The very same situation could play out again. We solved the last stagflation by bringning interest rates above 20% ending the supply shock that cuased the inflation. This threw the economy into a wild recession, which we ended by lowering the interest rates to spur the economy. The whole process took about 3 years (though the stagflation lasted over a decade). Or if you're a Republican (particularly a Reaganomic) the only thing that ended the recession (which was intentionally created by the Fed) was the ERTA of 1981. But I am a Democrat and believe that the Fed solved the problem, not Reagan. We can prevent another stagflation, but we have to act quickly.

Answer 3

We could be falling into another depression because anything is possible. However, the odds are we will go through periods of recessions and inflations like we have the past 80 years. The truth is about twenty to thirty years ago we started lending massive amounts of money to foreign countries to build infrastructure in their cities. The problem is that they lended them so much that those countries couldn't pay us back so they are basically our slaves until we release them which is sad because those countries suffer. Anyways so with America countrolling so many other countries because of past debts and with all the charity we do for countries that get hurt with hurricanes and tsunami's we will always have cash flow into america. I wouldn't stress too much about it.

Answer 4

Yes! It would be my fourth since I was born in 1969...

The effects, once again, will be different from the other ones, like the causes. Since China money exchange rate is now more based on the US dollar, Tokyo, Paris and London has a big drop last 2 weeks .....

In 2 weeks, that's billions that were lost. Unless United-States immediatly cut the growth of military expenses to reinvest in it's local economy, ....

Don't worry about the already riched men/women: the depression will not hurt them too much. The middle class will pay for the market mess.

Answer 5

No.

Absolutely no one except a couple of fruitcake apocalypse nuts are forecasting a depression.

We may have another recession, yes, we have those from time to time (that's what the guy above was really referring to when he said he'd encountered four in his lifetime).

There's a big difference between the two terms.

Answer 6

When your neighbor loses his job, it's a recession. When you lose your job, it's a depression.,
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Extremely unlikely we'll have a depression.,
Too many safeguards have been put into effect to prevent tnat from happening.

Answer 7

America is a mess. It seem no one cares about the value of good character in this country anymore.

Me me me... its all about me

Answer 8

If my current mood in any indicator, I would say yes.

Answer 9

10million+a day in Iraq and Afghanistan,you do the math