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In McCain's words, "the economy is sound". In my words, the economy is heading for a long-drawn recession due to a much needed deleveraging, albeit a drastic o
by furiouslol 18y ago
In McCain's words, "the economy is sound".
In my words, the economy is heading for a long-drawn recession due to a much needed deleveraging, albeit a drastic one. The world was too flush with credit in the past decade. The financial system is currently fubar with the credit market virtually frozen at this moment. Banks don't trust each other. The Chinese government has instructed their banks to stop lending to US financial institutions. The Feds are currently keeping the financial system on life support. Expect the side effects of the credit contraction to trickle down to the real economy very soon. More company failures, more layoffs, higher unemployment rate etc. Buffett wasn't exaggerating when he said this is an economic pearl harbor. Which is why the Paulson bailout plan will prove to be very crucial.
- palish 18y agoCrucially bad. Let's not keep adding to our national debt and instead save the $700b. We'll be hurting for awhile, but at least it will be over afterwards. We'll be able to move on with our lives at that point. A bailout will just postpone the inevitable and cause long-term pain.
- jpcx01 18y agoDon't be an idiot. He said "while the fundamentals are sound..." as part of a warning on a possible downturn. What do you want him to say? "The fundamentals are crap! Don't invest in USA!". There are several states in the country, right now, that are booming. If you don't think so, visit Austin and see how "depressed" it is.
- jon_dahl 18y agoI agree, but lay off the name-calling.