what started the recession?
Hi i’m very curious to know, what started the recession that were currently facing? what will happen to the american and canadian currency? and will it get any worse?
thanks!
Related posts:
- Just started coin collecting? I was wondering if there is a web site I can go to and see if what I have is worth anything? I am not wanting to resell just curious...
- Get Started With Coin Collecting: A Fun & Educational Hobby Get Started With Coin Collecting: A Fun & Educational Hobby Coin collecting has grown to be a great hobby over the years for everyone regardless of their age. Many coin...
- Getting Started With Your Coin Collection Getting Started With Your Coin Collection There are tons of different reasons why someone may want to collect coins, some collectors do it for the future value of the coin,...
- How to Sell Your Coin Collection Getting Started Numismatics http://www.OneMinuteU.com Lawrence Goldberg - How to Sell Your Coin Collection Getting Started Numismatics ~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~ my name is Lawrence Goldberg, I’ve been a rare coin dealer for 26 years and I’m...
- Coin Collecting Introduction - What’s the Best Way to Get Started? Coin Collecting Introduction - What’s the Best Way to Get Started? Buy the book before you buy the coin is frequently offered and sage advice. If you make the effort...
It will get much worse before it begins to improve. Probably last at least 5 years.
We’re in recession because people have quit spending, either out of fear or because they couldn’t borrow any more.
The underlying cause for this was greed, corruption, and federal ineptitude promoted by Republicans and aided by Democrates.
President Hoover, a Republican, presided over the beginning of the Great Depression. President Bush, a Republican, presided over the beginning of the Great Recession.
Sales of housing plummeted drastically.
people got scared from all the news broadcasts and stopped spending money like they used too.
a bunch of greedy crooks in washington(politicians and wallstreet)
Grossly overpopulating cultures making labor ever cheaper.
Charging low income people too high interest rates on
inflated house values.
Subprime mortgages and greedy Investment banks and wall street firms and Freddy Mac and Fanny Mae.
the downfall of the value of dollar in america….since it is the prime power in the world the whole world was affected
Flipping new Development homes, now they have flopped. Also, banks, finance institutes creating bogus accounts (HAVING NO MONEY!)
Greedy Corporate pigs on wall street.
Liberals. They went so far as to announce on TV and radio they were going to do it, how they would do it and when they would pull the trigger.
This recession is a deliberate Democrat program - according to Congressional Democrats.
The currency is being devalued - deliberately. It will get worse because it isn’t nearly as bad as their plan calls for yet. Think "Wiemar Republic."
There is a sense of urgency developing since there are signs it is nearing the bottom and will begin a recovery if they don’t act fast to prevent it.
The "stimulus package" is in fact written to deepen and prolong the recession, sending it into "Great Depression" territory and beyond.
It’s all been done before and economic deprivation is ALWAYS the result - no exceptions. It isn’t a guess, it’s a history report.
One of the main reasons for the recession was lack of responsible lending and borrowing. This is especially true for the housing market. Individuals were borrowing money to purchase houses (at over inflated prices) with loans that had adjustable interest rates. Everything was fine and dandy until interest rates went up. The rising interest rates increased these home owners monthly house payment (sometimes double their original payment). The result: people began walking away from houses they could not afford. Banks had loaned millions/billions to such individuals and are now not being paid back the money they had loaned out. Banks usually get their money from other banks and investors. This created a giant domino effect that has now impacted almost every sector.
To make matters even worse, housing prices have dropped dramatically. In some of the worst parts of the U.S. house prices have dropped by more than 50% compared to a few years ago. If you owned a house today that you bought for $300,000 would you want to continue making the payments knowing the house next door is on the market for $150,000? A lot of people that can still afford their current payment are even walking away!
Many factors will shape the American and Canadian currency moving forward. I believe that other countries may do less trade with the U.S. in the future because so much of the U.S’s actions have impacted the rest of the world. This could cause the American currency to devalue.
Many say the recession will get worse. Some experts believe things won’t begin to clean up until 4th quarter 2009. At this point, however, it is difficult to say.
in1990 congress[controlled by a republican majority passed a law the the states can NOT interseed with the banking industry all controls were off and banks could do what the like and greed came into the picture [reason given was you could buy a home with no money down[ creative financing] the banks could sell the shaky loans [no equityand no controlls] by packaging them with good loans to other financial instatutions like fanny may etc. no government regulation and the bottom fell out and the banks tighten up credit on large corp. They couldn’t borrow to expand and it was more profitable to lend money to the home industry
People thinking they deserved things when actually they didn’t. The American culture has moved from greatness to greed. No one DESERVES anything you have to EARN it. Roll-over debt allowed abundance to be shared by many… we all know not everyone can be wealthy.
So what led to the recession - overabundance in the average American’s consumption basket.
What is prolonging the recession - Americans returning to frugality.
Is America even the country that was once built upon values and hard-work?
Anyway the economists in charge of the Fed were taught that about rational behavior… but not greed.
Greed has never been in an economics equation, has it?
the constant Boom/bust cycles are unnatural in a free market economy.
the FEDERAL RESERVE causes these artificial boom/bust cycles by manipulating interest rates and money supply. this creates fake booms of artificial wealth (stock market, housing). And it inevitably has to bust. (they caused stock market bubble in 1929 and in 2000 and housing bubble with monetary policy). They cause inflation, a free market system is NOT supposed to have inflation, prices are supposed to go down over time.
Recessions are a good thing in general though for a free market system, they wash out the excesses, ie: too many people were spending and not savings over the last 2 decades (and capitalims needs savings for re-investment and more production to increase quality of life) so people need to save money and stop spending to help future economic growth, unfortunately the "stopping consumption" aprt when people stop spending hurts the economy in the short run, but it HAS to happen…and you get a recession which sets the stage for future economic growth.
We have been avoiding recession for decades and will pay severely for that, all these stimulus packages will only make the inevitable worse.
This is a depression BTW.
i dont know