The Dow Market dropped 450 points today and gold jumped $90 an ounce (gold goes up during economically bad times because it is normally the most secure form of money), in total stocks had a four percent drop.
How much longer do you think the current recession will last and how much worse will it get? Will housing prices recover soon?
(I know the title sounds fear mongering, but I figured it would get more posts that way)
Fear mongering, indeed While an actual depression is quite improbable, the recession seems like it will linger until well after the presidential election. The Dow dropping so far was a consequence of the AIG bailout and the Lehman Brothers complete flop. The increase in the price of gold echoes these fears, however the cost of black gold, oil, has dropped which I think is a key feature for an economy that needs to strengthen. Ultimately no one can predict the future of the market, but swings like this are not irregular. I think with the next presidential election (whoever ends up winning) will really motivate investors and indirectly boost the economy. All of that might be very superficial, but really isn't the market itself a superficial entity?
Although we will be in recession, technically all it means is growth is going backwards. So a few businesses close and money is a little tighter for a bit. As for the market, it is what the people make of it. The biggest problem for the banks would be if people panically start taking out all the savings in fear of losing them. If everybody is just a little bit more sensible for a while, we'll be back on track fairly quickly.
But that's the thing, people aren't sensible. People will go with gut instincts and whatever the MSM says. The people who actually recognize this will prosper and continue.
At the moment I would personally be moving a majority of my savings to Europe for the strong Euro, and then when the US gets back on track and the dollar gets better, I would switch back. That could be years, or next week, I wouldn't know. Now I know that this is contradictory to what I just said in the previous paragraph, but here is the thing - then if I keep some money in Europe and the US, then if the dollar drops, my money in Europe is worth more here. If the Euro drops, then I have an easier time when I move to Europe. I'm not taking my money out because of the recession, I am moving it to make sure I keep my money as something that is worth something.
na we wont its just the money is dropping because you know back in the a dollar there would be like 5 dollars now lol i mean plus if WE ELECT OBAMA then he will change everythign and get our men out of iraq and then we can pay off our depts
na we wont its just the money is dropping because you know back in the a dollar there would be like 5 dollars now lol i mean plus if WE ELECT OBAMA then he will change everythign and get our men out of iraq and then we can pay off our depts
If he produces change, will it be good change or will he run this country into the ground?
Change is always good, don't you watch commercials? These days you can, like, buy a whole burger with change.
The whole system is built on debt and non-existent money. It's a bubble waiting to burst. Will it create a depression? I don't think it has to result in that. But what is needed is a major change, one that will alter how the USA economy runs, the world economy runs, the USA everything. It's all gotta go. And no, Obama isn't the solution. His changes are not nearly sweeping enough, they're still based on the same false assumptions about economy. There is no bottomless pit of wealth, goods are not just created out of nothing: resources are not infinite. Merely pulling troops out of Iraq or changing our medical system won't be enough.
That's because AIG, the world's largest financial insurer of big business, filed for bankruptcy, and then became nationalized. As United States Citizens, we all own a little bit of AIG.
But don't you think it's a bad sign when the company that's supposed to bail out businesses from bankruptcy goes bankrupt?
Maybe AIG should have invested in Haliburton. /end Cheney remarks.
