when will the economy(money) in U.S.A decline, around what time because i know for a fact it will happen 100%, because its incredible on how prices on things are!!
thnx!
2007-11-11 14:05:32 · 7 answers · asked by albertpalacios91 1 in Business & Finance ➔ Investing
Why does it always have to be boom or crash?
What's wrong with a recession and bear market to wring out real estate / credit excesses to clear way for another growth cycle?
2007-11-11 15:08:07 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Spock is spouting the usual Republican lies and propaganda. A cursory glance at economic history shows that tax policy is not highly correlated to economic growth. Money supply and interest rates are much more influential than tax policy. In 1992 and 1993, Spock was no doubt whining that a tax increase would destroy the economy, when in fact the economy was recovering at the time and continued to grow nicely for the rest of the decade. Spock no doubt claims that Bush's reversal of budget surpluses saved the country from a depression, ignoring the fact that the Fed put the accelerator to the floor with the loosest money policy since World War II. If the Fed had not cooperated in the fight against recession, tax cuts alone would not have made a big difference.
To answer your question, I don't buy your assumption that a stock market crash is inevitable. But if it does happen, it will hit before the economy is in a serious decline or before massive inflation takes hold. Stock market moves are reactions to expectations of the future, not events of the past. It's absurd to try to pick the time when enough people become pessimistic that the stock market crashes. There are plenty of scenarios where some combination of defaults and/or a collapsing dollar causes financial panic in the US (and maybe the entire world), but it's not going to be triggered by something as obvious and predictable as an upcoming election. There are also plenty of arguments that nothing is seriously wrong. If you're so sure there will be a disaster, you'd better position yourself with gold or whatever now, because you won't be able to precisely predict when the markets collapse.
2007-11-11 22:55:45 · answer #2 · answered by Houyhnhnm 6 · 1⤊ 0⤋
The economy will continue to decline over the next few years. A specific day for a crash is impossible to predict. I do not know why you are asking this question, but if you own stock you might want seriously contemplate your present positions and place your bullishness in the loooooong term category. If you own gold, hold. If you own real estate I feel your pain, and if you simply have cash well I hope it's not in U.S dollars.
I do not think that any political party or politician is responsible for the current decline. Of course they play a small part, but don't we all play out own small part ? I don't remember it being government policy for people to buy more house than they can afford, which has led to the subprime mess, or was it govt policy for anyone to get more credit than they can pay off and not save any of their income. Getting rich is a personal choice. Isn't it funny how the richest people remain rich no matter who is in office and those that become rich hardly ever thank some politician. They thank their HARD WORK. Great question, keep using that foresight and stay focused.
2007-11-11 22:41:45 · answer #3 · answered by Daniel N 1 · 0⤊ 0⤋
We've got about 3 more years until the Boomers start to retire enmass and pulling money out of the market. By 2012 we will probably enter a very flat to slightly declining market. Our working population is top-heavy which is a drain on resources (expect a push to up Social Security benefits) and bad for economic growth. Look to Eastern Europe, China, and India for strong growth.
2007-11-15 21:45:50 · answer #4 · answered by Draper 3 · 0⤊ 0⤋
It will go up and down for a while then we'll have a big pull back in 2008. Too much debt and money printing. People were supporting the economy with home equity. Now they are tapped out.
Note- Prices aren't going higher. Your dollar is worth less.
2007-11-12 00:30:20 · answer #5 · answered by 1 Wild and Crazy Guy 3 · 0⤊ 0⤋
after Hillary and Dems look like they'll be elected on their "raise taxes" platform. If it looks like they'll win in Nov 08, you can expect the markets to start tanking about Aug or Sept 08 and keep on heading down for a while.
2007-11-11 22:11:37 · answer #6 · answered by Spock (rhp) 7 · 1⤊ 2⤋
Only if we fight in the middle east for 5 more years if we dont do something bush will get this country into bankrupcy
2007-11-11 22:14:28 · answer #7 · answered by The Doctor 3 · 1⤊ 2⤋