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Who crashed the world economy?

Updated on February 27, 2015

The men who crashed the world

Americans Standard of Living is Permanently Changed:

The Federal Reserve on Wednesday 18/2009 sharply downgraded the projections of the country's economic performance this year, predicting the economy will actually shrink and unemployment will rise higher.

For future projections, unemployment rate will rise from 8.5 and 8.8% this year.

Unemployment will keep climbing and remain "substantially" higher than normal at the end of 2011.

It is scary but it is true that American housing mortgage trouble, financial market crisis & huge unemployment is hurting the overall consumers. People cannot pay their mortgage, credit payments, and student loans & there is record numbers of personal bankruptcies, Banks & big corporation going bankrupt.

According to Howard Davidowitz chairman of Davidowitz & Associates "the worst is yet to come," Howard Davidowitz, believes American's standard of living will change permanently because of the following factors:

• An $8 trillion negative wealth effect from declining home values.
• A $10 trillion negative wealth effect from weakened capital markets.
• A $14 trillion consumer debt load amid "exploding unemployment", leading to "exploding bankruptcies."
As a result, American economy is in a major recession or worst may be an actual depression. People will be buying less electronics, less jewelry, less toys no designer clothes and less of every thing else, people will be mostly making ends meet for just survival.

U.S. economy heading straight for the cliff

US economic collapse-On the Edge with Max Keiser-02-10-2012

I love to go to Washington, only to be nearer my money. — Bob Hope


Be glad that you’re greedy; the national economy would collapse if you weren’t. — Mignon McLaughlin

People are so scared that they started to save pennies plus they are buying less & cheaper groceries, are buying bigger value packs & are not buying brand names. Sales in America are down for not only luxury items but for Wal marts is the largest retail stores in America & their prices are the lowest therefore their sales are up. Other retail stores are filling for bankruptcies.

In the past average American’s were able to borrow to buy houses, cars & send children’s to good schools. But that is no longer the case American people have to send their children to public schools, buy a cheaper car or used car or not buy a car just use public transportation, live in an apartment not a house.

Howard Davidowitz believes this is the only way that will save us therefore, we should start saving.The government is borrowing more & wants the consumers to borrow more too but consumers now understand & instead of borrowing more they are cutting down on their expenses & started saving, which is good for the near future.

“The only thing money gives you is the freedom of not worrying about money.“ Johnny Carson

Don't Panic! World food crisis coming?

w o r l d w i d e : r E V O L U T I O N

Why the Dollar Will Collapse

If you owe the bank $100 that’s your problem. If you owe the bank $100 million, that’s the bank’s problem. — J.P. Getty


Submit a Comment

  • stayingalivemoma profile image

    Valerie Washington 6 years ago from Tempe, Arizona

    I saw all this coming three years ago!! That's why I started writing to show people ways they can survive in this horrible economy.

  • profile image 8 years ago

    “Don’t purchase items you cant afford and save for a rainy day”. If the American consumer followed that simple saying Goldman or any other investment bank would not have been in a position to gain from last years economic collapse nor any other time in history.

  • Mr Nice profile image

    Mr Nice 9 years ago from North America

    Hi Peppermint,

    You are already on track if everybody follows your steps we will hopefully get out of this mess sooner.

  • Mr Nice profile image

    Mr Nice 9 years ago from North America

    Hi Darlene,

    Thanks for the comment and your positive thoughts. Hopefully we will get out but not with out pain.

  • Mr Nice profile image

    Mr Nice 9 years ago from North America

    Hi GP Tripathi,

    Problem is already huge & worst it's going to be really painful for many world citizen's.

  • Mr Nice profile image

    Mr Nice 9 years ago from North America

    Hi Graf,

    I believe you are right every one have to make some adjustments to get out of this mess.

  • Peppermint Thrift profile image

    Peppermint Thrift 9 years ago

    Great hb Mr. Nice - I always say that one of the things I have done right was not really owning anything I can't afford (house, property, etc) and this way no one can take it away. Hopefully we will all get out of this with a better understanding of what's important!

  • DarleneMarie profile image

    DarleneMarie 9 years ago from USA

    Very good Mr Nice. I agree w/ BK Creative. We have done this to ourselves in every way; however, I know we will come out of it - smarter I hope.

  • G P Tripathi profile image

    Dr G P Tripathi 9 years ago from India

    this recession was necessary to correct the excesses of few against so many. this had to happen some day. now is better than later as then its magnitude would have been a bigger sunamee.

    it would be painful for every one and lessons are learnt. Us will rise again but more disciplined first

  • RGraf profile image

    Rebecca Graf 9 years ago from Wisconsin

    True! I find when we are tight and have to watch our pennies, we are happier as a family and it can be fun trying to find ways to help cut costs and get back to the basics.

  • Mr Nice profile image

    Mr Nice 9 years ago from North America

    Kako si Tatjana,

    This recession is the biggest mess. You are right but your system is different. Yes people don't need to panic, just deal with it positively because Government is trying to do it's best.

    Lots of love........

  • Tatjana-Mihaela profile image

    Tatjana-Mihaela 9 years ago from Zadar, CROATIA

    Ha - I live in the country in which we are used to recesions every now and on... We do not panick any more - we just survive!

    The whole world needs to change - for the sake of future generations; I cannot agree more with you.

    A lots of love...

  • Mr Nice profile image

    Mr Nice 9 years ago from North America

    I believe it's not the end of the world; people just need to realize and change for sake of our future generations.

  • BkCreative profile image

    BkCreative 9 years ago from Brooklyn, New York City

    Yes, Mr. Nice - we have to change. We have been living in a culture based on credit, free labor and the exploitation of immigrants. All for a polluting lifestyle that is destroying us. It has to stop.

    I'm glad to see Americans know that we could not continue on the same path - there has to be 'change' in everything we do. But I think we had to crash and burn and be hurled into this depression before we opened our eyes.

    Thanks for opening this dialogue!

  • Tatjana-Mihaela profile image

    Tatjana-Mihaela 9 years ago from Zadar, CROATIA

    Well, Tony, economy in USA will improve, as soon as war with Iraq finally stops and this will happen when your all troups come home. Thanks to God and Obama, and true wishes of majority of Americans, this will happen very soon.

    By the way, your economy collapsed because of that war only. But it will get better.....

    Love and Light, thumbs up... P.S. a.clicked, I have just published my new Hub... Many Hugs....

  • Mr Nice profile image

    Mr Nice 9 years ago from North America


    Living within your means is always the best way to do because you will never be in trouble doing this way.

  • goldentoad profile image

    goldentoad 9 years ago from Free and running....

    My grandparents always lived like they were still in the depression or expecting one, know I understand why and realize this system will always collapse at some point.