The dollar vs GBP is about two for one right now, is anyone thinking there's a depression coming?

Question

How come there's no evidence of this on the streets?
Houses are still under construction in TX, credit card apps are pouring through the mail, surely this is going to hit hard and fast and it looks like most will be unprepared?

Answer 1

Recession is more likely, and some say we are in the first stages now.

The recent drop in interest rates has fueled speculative investing, when it should have been a warning that the Fed sees storms on the horizon.

Watch out for new highs on low trading volumes in the financial markets.

It is a sign that there is not enough support for those price points.

When investors realize this and begin to sell, the ripple effect could take the market down 10% to 20%.

WalMart knows this already. They have dropped prices much earlier this year, way before the traditional holiday buying season.

Just as expensive homes are not selling, so too will sales of non-essential items fall off.

Greed will likely keep a full depression from happening. Too much money out there seeking to make huge profits will always cause speculation and buying as stocks appear to have fully corrected.

The markets are no longer a gauge of realistic valuations, but rather how much people believe in a pot of gold at the end of the rainbow.

Certain geographic areas are exceptions to the rule, just as some homes are being built as far more remain unsold.

Think of the positive signs you "think" you see the same way you would think of high stock prices with small trading volumes: mirages.

Greater concern to the US will be to find a financial and military partner to remain dominant in the mideast AND to keep the US as the petrocurrency of the world.

Look for a US-China move to be announced...it is already happening in the back rooms.

Answer 2

Their is always a recession coming since they happen every few years. The 90's were actually unusual in that we went without one for nearly a decade. Most recession are preceded by some sort of excess, usually in the financial markets, and what is going on now is typical, and will likely lead to a recession. There is no reason to think it will be worse than the one in 2001.

Answer 3

If you really want to get scared look at the National Debt, and consumer debt, and how fast wages have been rising. All this growth was fueled by consumer debt. Now that money is tight (And going to get alot tighter) all this is going to come crashing down.

Answer 4

if united states doesn't take action quickly, it sure does look like it