The consumer is the catalyst of our economy. The consumer is tapped out by bad loans, too much credit, by a greedy banking system that wanted profits before responsibility.
Option arm loans, credit card loans, and other debt will put a dangerous strain upon the economy through 2011 at least.
Even Moody's rating agency has said the US AAA rating is at risk because of massive spending to bail out banks that won't lend. That will cause interest rates to go sky high if it happens. And even if it doesn't happen rates could go sky high anyway.
to the government, the financial system is more important than the people, and that was true under Bush and is still true under Obama. Obama will make less war which is good, but he will not break the big banks, which is necessary to financial recovery.
http://finance.yahoo.com/tech-ticker/ar … BAC,%5EDJI
Couldn't agree more. Debt is a very serious issue here in the UK too.
I am a young person and even I cannot believe the level of debt that has been accumulated. Many young people like me know have at least £21,000 of debt when they are 21 due to university loans etc. Fortunately though that isn't a 'real' loan.
I agree with you, and massive mortgages, car loans, overdrafts, credit cards....
Did you get my email, by they way?
Did and sent a reply. Sorry for the delay in the reply, your original message appeared to be in my spam folder.
All I can say...it's gonna get worse before it gets better. You might find this guy interest: Mish's Global Economic Trend Analysis.
One of my favorite hobbies is following the market and what not have you, this guy spits it out real easy for me to digest.
I think Mish and Peter Schiff and Krugman, all sides of the political spectrum, have a problem with what is going on with the bank bailouts.
You are correct...because the bank bailouts are useless.
Our current financial system is being ghosted off a cliff and the drivers are bailing out. But, don't worry it's only our money system not our lives. You still have your own will to decide how to handle it. Don't believe people (Alex Jones)who say that our lives are run by the NWO. As usual I say go green and go local. Get a composting toilet an alternative electricity generator and whatever you will need to live a good gypsy life if need be.
I also like Peter Schiff. Apparently he's a descendent of the Schiff Warburg family and has the insider knowledge. It's his roll to be like "Don't say we didn't warn you."
Even though he's most likely in with the Rothschilds, it's nice when they come right out and say it clearly for everyone to ignore. George Soros is another Rothschild agent who's good for being frank and open about what's going on.
Didn't you hear? Bernanke was on TV last week announcing we'd have positive growth by the end of this year and that the recession is over, although unemployment "is a lagging indicator."
Yay. I guess we can all go celebrate now.
There is no doubt in my mind that this "recession" will last for years. Part of the problem is banks that are too big to fail and over borrowing.
I do not see how we can fix it with more borrowing and bigger banks - which is what is happening at the moment.
Recession has really hit in the medical field. Can we say no raises, besides no cost of living raises. We are cutting back on nurses and Lna's were I am at and freezing jobs. No overtime, no working over your scheduled time or you will be asked to leave. I do not dare to change from the facility that I am working because if there is even a hint that we have put in an application at any other facility you can lose your job. I am basically stuck underpaid, overworked and tight belted. We can not even take a regular vacation this year. Our 'big' vacation will be a weekend at York Beach in Maine that the only way we can pay for it is having my mom and dad go with us to help with the expenses. Looks like day trips here and there over the summer for the kids. I can not even afford to let them go to camp this year.
The industry (renewable energy) I am looking to go into appears to be doing much better than most. Looks like there are lots of decent entry jobs around (around £25,000pa). However, even I must admit that many such companies are cutting back on previous years. However, when they have had growth of 50% pa growth of only 20% is still a big slowdown for them. I just count myself extremely lucky - I nearly did accountancy or mathematics at university with a view to entering the financial sector!
Breaking the big banks is a very bad idea. The collapse of Leman Brothers precipatated the whole crisis. Suddenly any bad thing could be imagined and investors panicked.
In a years time, when things have recovered enough, break the banks up, cut Wall Street down to size and make banks do just the basics instead of insane derivative and futures trading and debt leveraged to the power of ten.
The productive capacity exists for everyone in the world to be materially secure and have a good life. Capitalism needs to learn its lessons and curb its greedier practitioners.
Ah, I disagree. The investors should be afraid, and the reason is that the debt of our country is now enormous. I would suggest that your argument, Will, though plausible, leaves out the fact that things cannot continue as they have previously. People cannot borrow as they have previously. People cannot hope for asset appreciation as they did previously. Now is the time for the big banks to be taken down. If not now, there will never be a chance to stop them.
The Lehman bankruptcy did not start the crisis. The run on the money markets, maybe by China started the crisis. The late September near collapse of the banking system started the crisis.
But so what if they big banks go under? Just import big banks from other countries to lend. I view this idea that the big banks determine whether we have depression or not to be a bogus argument. There is always someone willing to lend if they think they can make money. If they cannot make money, the economy is a lot worse off than we think anyway.
I vented my sarcasm in hub #13. Appreciate the inspiration, thanks!
http://hubpages.com/hub/Hooray-The-Glob … on-is-Over
You have an insane, semi-religious faith in the free market, that much is clear. The only problem is that the history of capitalism is a history of continual crisis. Governments have struggled to create the conditions that prevent the recurrent crises because they threaten our societies survival (check out the thirties). Regulation enforces a measure of sane cooperation and gives us a chance of prospering. And it really was Lemans who turned a bad situation into a nightmare.
ps I am insane too.
Actually Will, you are defending the party line, the financial industry line. I don't think you are right. Why can't the government start new banks, capitalize them to the max, and have them lend. Then the new banks, with good underwriting, keep the loans, with no securitization. Just let the JPM's and BAC's and C's wither and die.
Then the wealthy will lose their shirts but the economy will continue.
by Mrs Lawretta White 13 years ago
How long do you think this would last.I Can't take it any more. It is invading my job. it is turning the country up, side and down.
by erickazoso 13 years ago
I'm curious what others think, in my opinion, the current recession we're in is simply the fault of the people that wanted a house and either couldn't afford their loans or didn't educate themselves properly on the loan they were getting into.
by Gary Anderson 13 years ago
Consumers are being squeezed and the reason is that the cost of living is too high. Commodities, housing, insurance, utilities, medical care, etc are all too high based upon the small increase of wages over the past 20 years. I am not saying that people cannot live frugally, but I believe that the...
by Raymond D Choiniere 12 years ago
Hey Hubberville,I am planning on writing my next about the state of affairs of the Financial business' and Government action.However, I would like to point out one specific problem, for which, needs to be addressed almost immediately. Hence, the reason for the posting.The "credit" crisis...
by Stacie L 11 years ago
“It’s Going to Get a Lot Worse”: ECRI’s Achuthan Says New Recession UnavoidableWeakness in leading economic indicators has become so pervasive the Economic Cycle Research Institute now predicts a new recession is unavoidable."The vicious cycle is starting where lower sales, lower production,...
by Elena 11 years ago
Is it really possible to live Debt-Free?
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