Ah, recession. It's a word that economists seem to be leery about using, but with our country's current economic situation, I don't think there is going to be an easy way to avoid it.
Stimulus packages, and policy proposals are not enough to save the economy...we need change and reform now.Since January alone the perception of the economy has dropped from 26% calling the economy excellent or good down to 17%. While the rating of poor has grown from 28-45%.
While the candidates are talking of their plans to combat this economic crisis, our economy is collapsing due to crimes and the complete irresponsibility on Wall Street. The gap between the structural crisis and the profits being made in high places is being completely ignored.
The media is no help, rather than presenting the problems so that a solution can be found, they contribute to it. There are numerous advertisements for loans that just end up getting more and more Americans into debt. There is no punishment for profiteering, and no new regulations concerning this are being proposed.
This whole economic crisis is "one of the most vicious in financial history," according to Joseph Quinlan, the Bank of America's chief market strategist. This bank alone has lost $7.7 trillion in stocks since October.
That is an astronomical amount. If this is the "most vicious" that would in turn mean that it is worse than the stock market crash of 1929 and every significant crisis since.
David Walker warned in the film "In Debt We Trust" that if America continued on the path of economics that it was currently on the path would eventually erode if not suddenly damage our economy, standard of living, and national security.
Now just a few years later we are seeing the sudden damage.
What can be done? How about starting by going after some of the people who are profiting the most from the misfortune of others. The mortgage brokers who offered loans to those who didn't understand what they were getting into, those who couldn't afford them, and those that should not have qualified. Some appraisers are also guilty over overvaluing homes so that they could gain from the dishonest brokers. Banks and brokerage firms that purchased and resold the mortgages for huge fees.
Its going to take more than just going after the "bad guys" those who profiteer, some major change and reform is needed. I think that we are in for some bad times, and a recession is emanate, if it isn't already here.
I do agree with you on the fact the the recession is eminate and that the banks and brokerage firms are partially to blame. However, you need to keep in mind that many people are choosing to be in debt. People just do not want to save up to buy luxuries anymore. Loans are too easy to get, I agree. However, the market is demanding this ease, and unfortunately, it is our whole economy that will pay for it.
By the way- good blog.
You need to take into account the weakening dollar, minimum wage increase last year, and the war into your assessment.
The dollar has weakened...there needs to be some substance to it, before the paper its printed on becomes of more worth than its presumed value. There are many faucets to the problem, hmmm maybe I'll have more to blog about on the topic now.
There's books and documentaries that suggest that the world bankers that run the Federal Reserve (the ones that make our money) are responsible for the Great Depression, WWI, WWII, Vietnam, and quite possibly our extended stay in Iraq & Afghanastan.
Watch a documentary called "Zeigeist", then read their supporting literary resource material and make your own conclusions. (You can get it for a few bucks on Ebay)
There’s a lot of video material to be found which opens up a lot about these issues…
This is the new updated version of “Zeitgeist”.
http://video.google.com/videoplay?docid=-594683847743189197
http://www.wowzone.com/monkey.htm
but as far as i been able to study it does not become an official recession until 3 years after the effects take place because they can not identify it till then. I doubt that the current candidates will be able to truly make a dent into or more than estimated 3 trillion dollar debt crises and the weakening dollar was inevitable because we stop becoming producers and becoming consumers. We are not going to be able to gain back our economic power until we can prove our economic worth to the people we borrow money from.
A Depression is coming. I don't mean to scare everyone, I just don't see how we can stop it.
As of November 1st 2008, I would say that a recession is upon us.