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Think the worst is over? No, it's going to get MUCH worse.
Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- decreased at an annual rate of 0.3 percent in the third quarter of 2008, the decline is the biggest drop in the GDP figure since during July through September of 2001, when the U.S. economy shrunk by 1.4 percent.
The most interesting (and terrifying) aspect of the financial crisis is its global nature. This crisis has spread like a wildfire; there isn't a country or population on the globe that is unaffected. The 1997 Asian Financial Crisis made policymakers aware of the fact that economic interdependence meant that an economic crisis in one country can spread to others like a disease. Unfortunately, that crisis was too minor to serve as a wake-up call. Hopefully this one will.
We can't reverse or slow globalization; it is all but inevitable. It is also, for many reasons, desirable. But it also brings major obstacles, and this is one of them. The crisis illustrates that the economic future of the US is tied to the global economy and to the economic well-being of developed and developing countries alike. Not to sound cliche, but we really are all in this together. What is needed is a significant increase in global economic cooperation and coordination. We need a better global economic regulatory regime (one that dramatically improves upon the current Bretton Woods institutions and WTO). Central banks in individual countries need to increase coordination. Development assistance needs to be increased to financially 'backwards' parts of the globe, infrastructure must be improved. A lot of other things must be done...
When Greenspan describes the future as a "tsunami" we have yet to realize how bad things will become
He described the past (as in the onset of the credit crisis) as a tsunami that policymakers did not anticipate. Very colorful...but not much more than that...
We are just feeling the breeze right now, sorry to say, just wait and 3 months from now the tsunami will start to do it's damage.
and obama thinks he can solve the recession by increasin taxes upon those that still have a job. great going obama, making the recession turn into a depression by having your stupid policies in place. guess you hate america and just want to destroy the republic.
I believe Greenspan and the bankers didn't truly understand the impact of derivatives they were creating. They believed, as Greenspan often said, that they were spreading the risk around. In fact they were multiplying the risk and we now have what we have. The origin of our problems goes back to 1980 and the credit expansion in America. We were hoodwinked into thinking we could just borrow and consume without producing anything. It's folly and the result will be a lower standard of living for all but the wealthiest of our citizens. The idea that you can consume more than you produce indefinitely is ludicrous and that is taught in Econ 101.
and obama thinks he can solve the recession by increasin taxes upon those that still have a job. great going obama, making the recession turn into a depression by having your stupid policies in place. guess you hate america and just want to destroy the republic.
Doesn't matter... the sheeple want "change" and oh boy are they gonna get it.
We have only seen some of the effects it will have on the business sector but as the businesses begin to fail more then we wiill also see unemployment rise greatly. It isn't a pretty picture but with a better administration we can perhaps survive it.
and obama thinks he can solve the recession by increasin taxes upon those that still have a job. great going obama, making the recession turn into a depression by having your stupid policies in place. guess you hate america and just want to destroy the republic.
Seems to me the last time a president raised taxes after a recession the economy did great.
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