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There have always been doomsayers around predicting some great economic adjustment. I remember back in the 70s and 80s people talking about how the economy was ready to fall and it would make the great depression look like a picnic etc. But those were all people without any true experience in economic affairs. But over the last 5 or 6 months I have been hearing big CEOs and others in the know predicting some tough times ahead. It makes me think that this time there is something to all that talk.
Of course there will always be hills and valleys and the stock market might be in for an adjustment, but those predicting tough timed ahead are no different than those who predicted the same thing in the 70s and 80s. Do you remember what CDS were paying in those times or even a basic saving account? Of course remember interest rates on mortgages as well. I think you are concerned about something that is just part of life. good and bad trends will not be any different in the future than in the past.
Can you give us an example of major CEOs that are predicting a crash? It isn't likely to be anything like 2006-12.
In case you had not noticed, unemployment is low, way more jobs have been created than are being lost. Plenty of businesses go through cycles and have to cut back. Some even fail. But more and more are growing.
Yes I understand our economy is doing much better than 2009 and many jobs were created (maybe bit more than our economy can sustain and hence the job cut announcement). The ANNOUNCEMENT is for future, the job cuts hasn't taken place yet while the job creation is recent past or present. I was wondering are the announcement of job cuts a indication of immediate future (next 2 years) where we will see reversal of growth
Short version: The real world does not work in the ways you imagine it to.
The debt, more specifically the speed at which it is expanding, is a major issue.
With the current party obsessed with spending on tax cuts and military expansion it is unlikely to change. Doesn't change it is a major problem that will have to be addressed fairly soon. Other wise we'll be back talking about credit down grades again.
The debt, more specifically the speed at which it is expanding, is a major issue. With the current party obsessed with spending on tax cuts and military expansion it is unlikely to change. Doesn't change it is a major problem that will have to be addressed fairly soon. Other wise we'll be back talking about credit down grades again.
Hmmm. US borrowing costs went DOWN following the last "downgrade" which was actually just a shot fired at dug-in TEA Party demagogues. It is in any case markets that drive interest rates for US debt, not any sort of babbling by right-wingers or ratings agencies. And markets have for obvious reasons long made US debt the most highly valued in the world. Even more so than usual in the 21st century, people have been lined up in the streets to invest in the US. It's not like we have to go begging for investors. US debt is meanwhile a key component underlying the international capital system itself. Treasury securities comprise the largest secondary financial market in the world and form the reserve basis for national currencies in dozens of countries around the globe.
There is a need here to get a grip and clear the head. It's not like US debt was borrowed from some mafia-connected shiny-suit loan shark dude who might send his pipe-wielding goons out after us at any moment. It's not like we will ever pay off the debt either. Neither we nor any other major economy carrying debt (which is all of them) have any plan (or reason) to pay off debt. It will of course be serviced with timely payments of principal and interest as originally scheduled. That's it. That's the real world. Feel free to join us sometime.
What would you actually know about it? Is there something you're not telling us, or did you just get this from some bunch of tea leaves? Clue: The economy does not run according to timetables.
There are always recessions it's part of a natural economic cycle. In some respects recessions are good for the longterm growth and health of the economy.
And markets have for obvious reasons long made US debt the most highly valued in the world. Even more so than usual in the 21st century, people have been lined up in the streets to invest in the US.
They aren't "investing in the US", they are buying US debt so they can sell us more than they buy. It's actually the opposite of investing in the US. Rather they are investing in their own infrastructure and productive capacity (prosperity).
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