If the US is so bad, how much worse is it out there in the world? (credit card, debt)

[Rei]

I recently got a phone call from a college friend who works in Singapore. He said the economy in the south-east asian region today is worse than the 1997 asian financial crisis because back then the IMF and other developed countries were not in recession. In turn, they were able and had the power to help (lend money) to the asian countries in crisis.

Today it's a whole different story. Developing nations such as indonesia, thailand, phillipines may get hit worse just b/c every other developed countries is now in crisis (or meltdown) and don't have the power to help.

While we in the US are talking about how a great depression is on the horizon, how much worse do you think can these poor countries get?
If we're seeing a great depression, shouldn't they be expecting a super huge crazy killer depression? Are we so focused on ourselves that we do not think of other people out there in the world? What are your thoughts?

[ViewFromThePeak]

Originally Posted by Rei

I recently got a phone call from a college friend who works in Singapore. He said the economy in the south-east asian region today is worse than the 1997 asian financial crisis because back then the IMF and other developed countries were not in recession. In turn, they were able and had the power to help (lend money) to the asian countries in crisis.

Today it's a whole different story. Developing nations such as indonesia, thailand, phillipines may get hit worse just b/c every other developed countries is now in crisis (or meltdown) and don't have the power to help.

While we in the US are talking about how a great depression is on the horizon, how much worse do you think can these poor countries get?
If we're seeing a great depression, shouldn't they be expecting a super huge crazy killer depression? Are we so focused on ourselves that we do not think of other people out there in the world? What are your thoughts?

Let's see...we as Americans have become bitterly divided politically, have a relatively low work ethic, don't save, have a command-control economy most socialist than the likes of France and Scandanavia, and are used to overconsuming (shop 'till you drop). Asias fall in line and work together, have immense productive capacity, save a lot, and have a pent up desire to live like we used to.

Who do you think will end up worse?

[texdav]

Personally I think the old saying that you can learn the easy way or the hard way of hard knocks. I think in many wats this resession is a way for peole that have never lived thru one like in the 70's to get back to reaqlity. Many pole roight now that lived thru the 70's resession are in good shape because they learned then.It never a bad idea for peole to take stock of their financial situation . I am encourage by the savings rate going from a nedative to 3%.This is in general a very hard working and industrail society if you look at comparison with other countries. If too many get sucked into the "take care of me" idea then it will go downhill.

[ViewFromThePeak]

Originally Posted by texdav

Personally I think the old saying that you can learn the easy way or the hard way of hard knocks. I think in many wats this resession is a way for peole that have never lived thru one like in the 70's to get back to reaqlity. Many pole roight now that lived thru the 70's resession are in good shape because they learned then.It never a bad idea for peole to take stock of their financial situation . I am encourage by the savings rate going from a nedative to 3%.This is in general a very hard working and industrail society if you look at comparison with other countries. If too many get sucked into the "take care of me" idea then it will go downhill.

I agree with the industrial society bit.

Of course, there are some looney tunes who actually believe since we have such a strong military, we'll just take what we want, or blackmail people to buy our bonds or else face a mushroom cloud over their cities.

[Oildog]

Originally Posted by texdav

Personally I think the old saying that you can learn the easy way or the hard way of hard knocks. I think in many wats this resession is a way for peole that have never lived thru one like in the 70's to get back to reaqlity. Many pole roight now that lived thru the 70's resession are in good shape because they learned then.It never a bad idea for peole to take stock of their financial situation . I am encourage by the savings rate going from a nedative to 3%.This is in general a very hard working and industrail society if you look at comparison with other countries. If too many get sucked into the "take care of me" idea then it will go downhill.

Agree with this post. I think its going to be a reality check for people under 30 who have never lived in economically difficult times. I first house at 20 is not a right, you need to save at least 10% for a down payment. People drive cars for more than 5 years, and dont have 5 figure credit card bills.

[mach]

I'm 29 this is the best year by far I am having. My income has increase 40% from last year. I have 0 debt except for my rental properties and I am about 92% liquid with cash. I don't know of anyone that is out of work that is worth a salt. the only thing that I see is my IRA is down 18% YTD I hear that is good? Food prices are up. IMO the 50+ crowd might be hurting more. I atleast have a few years to rebound on my retirement.

I get asked how did I turn out so good. I just say it was my dad. He put the fear of god in me when I stepped out of line.

Thanks Dad....

The key for me is to observe the situation and take control. I visit boards like this to get all angles then try to make the best educated decision I know.

[Stone28]

Originally Posted by mach

I'm 29 this is the best year by far I am having. My income has increase 40% from last year. I have 0 debt except for my rental properties and I am about 92% liquid with cash. I don't know of anyone that is out of work that is worth a salt. the only thing that I see is my IRA is down 18% YTD I hear that is good? Food prices are up. IMO the 50+ crowd might be hurting more. I atleast have a few years to rebound on my retirement.

I get asked how did I turn out so good. I just say it was my dad. He put the fear of god in me when I stepped out of line.

Thanks Dad....

The key for me is to observe the situation and take control. I visit boards like this to get all angles then try to make the best educated decision I know.

Be carefull you might break your arm patting your self on the back.

Now to actually anwser the OP's question. A good part of the world dose not even have working plumbing (Read: Toilets) and their numbers will probably increase. All this doom and gloom is relative. We may be down but we have it made compared to others. Count your blessings folks.

[Lulu101]

Some of those places have a much higher personal savings rate than the US. I assume that will help them (that's how Japan has survived a 15 year recession)

Originally Posted by Rei

I recently got a phone call from a college friend who works in Singapore. He said the economy in the south-east asian region today is worse than the 1997 asian financial crisis because back then the IMF and other developed countries were not in recession. In turn, they were able and had the power to help (lend money) to the asian countries in crisis.

Today it's a whole different story. Developing nations such as indonesia, thailand, phillipines may get hit worse just b/c every other developed countries is now in crisis (or meltdown) and don't have the power to help.

While we in the US are talking about how a great depression is on the horizon, how much worse do you think can these poor countries get?
If we're seeing a great depression, shouldn't they be expecting a super huge crazy killer depression? Are we so focused on ourselves that we do not think of other people out there in the world? What are your thoughts?