Recession effects on global economy

[riffleman 20]

Due to its here many losed there jobs.what wrong they done.

[Baff1 0]

I'm 50% poorer than I was a year or so ago.

Yay!

[NeMeSiS 11]

No, but since i was already more or less broke i had nowhere to go but up. ;)

[Student Pilot 0]

...they didn't do any wrong. What we are experiencing as a recession is merely a market correction. The overall economy, and particularly housing, has experienced unsustainable growth rates over the last decade or so. Our recession is putting the economy where it should have been had these excessive growth rates not occurred.

This is just a part of life. Economies improve and worsen, people lose jobs and get new ones, and life goes on. Those who understand this can budget for it so they are not caught with their pants down when the economy busts. Those that do not understand this learn a valuable life lesson.......or complain to their government and insist "banksters" get punished and demand handouts to make their life easier.

-Student Pilot

[rothy 0]

...they didn't do any wrong. What we are experiencing as a recession is merely a market correction. The overall economy, and particularly housing, has experienced unsustainable growth rates over the last decade or so. Our recession is putting the economy where it should have been had these excessive growth rates not occurred.

This is just a part of life. Economies improve and worsen, people lose jobs and get new ones, and life goes on. Those who understand this can budget for it so they are not caught with their pants down when the economy busts. Those that do not understand this learn a valuable life lesson.......or complain to their government and insist "banksters" get punished and demand handouts to make their life easier.

-Student Pilot

Excellent response!

[ProfTournesol 956]

Mmm... bankers lending money at variable interest rate to people who can't obviously refund it, or pretending investing other people money but paying interest only with new invested funds, or traders by-passing trading security system with tacit agreements of their hierarchy aren't really what i'd call "normal economic cycles". I'm afraid that no lesson is being learnt from what recently happened.

[Iroquois Pliskin 0]

Mmm... bankers lending money at variable interest rate to people who can't obviously refund it, or pretending investing other people money but paying interest only with new invested funds, or traders by-passing trading security system with tacit agreements of their hierarchy aren't really what i'd call "normal economic cycles". I'm afraid that no lesson is being learnt from what recently happened.

Savage greed. Without greed of the peasants you can't have what you've described above.

Enjoy the consequences.

[MehMan 0]

Peasants? It's not them causing the trouble, it's the fat cats and their greed. Since the fed slashed intrest rates on the dollar there was no point in investing money there, so they started looking else to get a nice return on their investement. So they invested in credit, but since the credit market isn't huge, it needed to be expanded. So they involved broke ass people who could barely, if even, make payments. And they sold this wonky credit with the good credit until shit went tits up. Now everybody's broke.

[riffleman 20]

Here educational institutes(like managemen,tecnology etc) also suffer recession.

[Student Pilot 0]

Peasants? It's not them causing the trouble, it's the fat cats and their greed.

You seem to have missed the mis-guided attempts of the US government to ensure housing for every man, woman, and child. Many companies were forced to make risky loans because the people trying to get the loans were qualified under the standards set forth for Fanny Mae and Freddy Mac. If the banks refused the loans, they could have been sued for discrimination. While there was some greed going on, it was by far not the whole story.

Everyone, from the government and their ridiculous regulations, the common people and their desires for a house they couldn't afford, and the bankers who wanted a higher return on their investment should share the blame. Oh, and don't forget the people running pension funds and low-risk investment funds who invested in these securities, who had no idea what they were investing in. There is nothing wrong with purchasing higher-risk securities because they bring a chance of higher return. However, when you don't even know what you are investing in, like many fund managers and investors, then you are asking for it.

And then, there are the rating agencies who rated securities of the people who paid them. An obvious conflict of interest...

And then you have political bozos like Barney Frank who give their uneducated opinion on the health of public banks, which in turn causes a run on said bank.

So do not stand there on your high horse blaming "fat cats" and "bankers" while ignoring everyone else. There are few, if any, parties that do not share some of the blame of the current recession.

-Student Pilot

[MehMan 0]

I wasn't ignoring everybody else, and it's good to know that you haven't been too. There are many parties involved and yes, we're all to blame.

[Baff1 0]

Mmm... bankers lending money at variable interest rate to people who can't obviously refund it, or pretending investing other people money but paying interest only with new invested funds, or traders by-passing trading security system with tacit agreements of their hierarchy aren't really what i'd call "normal economic cycles". I'm afraid that no lesson is being learnt from what recently happened.

Sounds fairly normal to me.

What lesson is there to be learnt?

It will happen again.

The money trick is predicting when.

---------- Post added at 08:59 PM ---------- Previous post was at 08:57 PM ----------

Peasants? It's not them causing the trouble, it's the fat cats and their greed. Since the fed slashed intrest rates on the dollar there was no point in investing money there, so they started looking else to get a nice return on their investement. So they invested in credit, but since the credit market isn't huge, it needed to be expanded. So they involved broke ass people who could barely, if even, make payments. And they sold this wonky credit with the good credit until shit went tits up. Now everybody's broke.

It's what the peasants all voted for.

[Iroquois Pliskin 0]

A world war is usually due in such conditions; war always destroys ignorance for a limited time, for the peasants cry: "No more, NO MORE, NEVER AGAIN!" soon after.

[riffleman 20]

USA hold 30% GDP of world economy. Now due to china world suffer.

[Student Pilot 0]

not sure if I am missing something in translation, but are you saying the world recession is mostly China's fault? If so, that is interesting, considering that China's economy is still growing, albeit at a slower rate.

A world war is usually due in such conditions

I sure hope not. I am hoping that our world is too inter-connected and inter-dependent for a world-wide war to be possible. Hopefully both sides realize they have way too much to lose in such an event...

-Student Pilot

[riffleman 20]

No man now days news come again and again in stock market ,china sneezes ,world gets flu.

[Student Pilot 0]

That can be said about any major economic power nowadays, whether it be Europe, China, the United States, or even India to a certain extent. The world is so interconnected right now that problems in one part of the world may cause a ripple effect to the rest of the world.

Of course, the opposite could be true as well. If the other countries remain strong economically then they could help pull an ailing economic power out of its crisis.

-Student Pilot

[riffleman 20]

As worldbank providing aid to many countries ,i think it will help them.

[[aps]gnat 28]

If so, that is interesting, considering that China's economy is still growing, albeit at a slower rate.

Narrr .... thats their "government" statistic. Talk to the locals and they'll tell you the numbers are nothing like what the worlds being told.

I was in Shanghai on business last week, after being away a year or so. Things look and feel to be much "quieter" than they usually are there.

But China still fuels much of the consumerism left in the globe.

Australia is and has been somewhat insulated from the downturn.

Things are not all that bad here *crossfingers it stays that way*

A sign things are changing (up), banks are fully expecting to increase interest rates very very soon.

[Student Pilot 0]

Yeah, good point Gnat. I have heard that China's stats can be a little...inaccurate. Unfortunately, for most of us, that is all we have to go on. Thanks for providing a first-hand report.

As for interest rates, I just hope the reason for the increase is economic growth and not inflation.

-Student Pilot

[riffleman 20]

Recession drives mobile eateries.