Do you think we are in a recession and why?

Question

Face it, the US Dollar is in the tank. I've never seen US currency so low overseas. Cost of living has skyrocketed, gasoline, heating fuel and milk has reached never before seen prices. Housing has always been overvalued. The subprime loans are just corrupt banking practices like the savings and loan scams. In my opinion we might end up paying for another bank bailout. Isn't the US economy just a house of cards waiting for a small breeze?

Answer 1

because americans are obsessed with stuff - they can't get enough stuff....it's all in the posessions and stuff that is stuffed into every garage in america....have you looked at people's garages when the door is open? lots of stuff and they keep buying more so then they have to rent storage places...and then they stuff those......stuff......stufff......stuff......can't get enough.

Answer 2

A recession is two consecutive quarters of negative GDP growth. As it currently stands we are seeing between 3 and 3.2 % annual growth.

Or according to the NBER, " significant decline in economic activity spread across the economy, lasting more than a few months". We have seen a slowing growth rate but not negative activity on the whole economy. Some areas are slumped and others are growing.

Also, jennjdh: Bill Clinton did not erase the national debt. Since 1791 the US has carried debt. Bill Clinton was responsible for putting forth a suggested budget that could have eliminated debt financing of the national budget for a two year period (ostensibly giving the economy a surplus). One way to understand how this works is this: Your checking account has a balance of -$10. You earn 5 dollars working and spend 4, the extra 1 dollar goes into the checking account and the new balance in -$9. It doesn't mean you have erased the debt, rather you have positive cash flow.

Answer 3

Economically a recession is defined as three consecutive quarters of a falling economic growth (GDP). Following this definition the USA is on the tipping point of huge growth; not a recession ... we're leaving the 30/100 parallel year cyclical recession of 2001.

The fall in the dollar is taking us out of falling growth. Instead of outsourcing all labor to foreign countries a falling $ will bring jobs back. We're seeing the stock market do phenomenal things this year. In fact, the S&P 500, Dow, and other indicator's leads us to belive that the bulls are running.

Since housing is a lagging indicator ... meaning it takes infinantly longer to turn over than stocks ... well, when foreclosures last for three consecutive years is an indication of housing problems. This is also good 'cause housing the the stock market are "Inversly " related ... meaning the stock market's bull are not only running, but pulling weight and plowing the field for us all.

Answer 4

i totally agree with you ive been saying this for 6 months now. i think the cause is the overpriced housing market. all this poor people buying houses when it was easy to do so are going into forecloser. which causes a domino affect. furniture store are going out of business left and right real estate employees has to leave and find work elsewhere. the only people are making it are anything medical or food and gas. things that we can not live without.

Answer 5

it is always the same with the american economy.they will without doubt take the world through a recession when sadly things are not going their way.i look at this sometimes and think ,these unscrupoluos money making people are using us as pawns.we are playing with peoples lives and they dont care.time to scrap world currency and everybody will be on a level playing field.

Answer 6

Please study Law of Equilibrium of Wealth in detail. Remember, like matter and energy, wealth also moves from higher concentration to lower concentration. Now USA may be in recession. What happens when there is depression in air pressure in a region? Air from allround gushes in (this is reason for formation of winds) and air pressure is restored. It will not take long for wealth rush into USA and recession is reversed. Who knows USA may bounce back.

Answer 7

Yes, because of our current president. Think about it. Clinton had the national debt erased and Bush was in there and in no time the debt is back and huge.Bush just keeps wasting money .

Answer 8

From this point it can seem like it but we have overcome these similar situations in the past.

Answer 9

It is really a tornado

Answer 10

too early to tell.