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Originally Posted by aztec61 I just heard on the tube tonight that former Fed chair Greenspan has said there would most likely be a recession in 2008.
Should we enjoy the "good times" while we got 'em now?   |
He doesn't take into account the stock market crash of 9/11. Many companies couldn't take the hit that it caused. Same situation here. We've seen many companies go bankrupt because of it.
He sais the economy has been expanding from 2001. I don't share that opinion. Far from it. The attacks of 9/11 caused the global Western economy to lose 10 years of economical progress. At the end of 2006 the Dow Jones got back to the value of before 9/11. That's 5 years of recovery from it.
I think Greenspan is just trying to warn the US policy makers about the federal deficit. And rightly so. That deficit is a grave waste of money for the US taxpayer.
Here in Belgium we have had a significant rise in the economy. While I type this I just heard that the amount of failing companies has lowered since last year. In 2004 we had a serious unemployment problem. Our newly elected governement made a promise of finding 200 000 new jobs in a period of three years. So far we're at 140 000 new jobs.
I can also tell you that the IT boom pretty much ended in 2001, throwing the whole sector here in serious problems. I should know as that's the sector i'm in. It's only been the last few years that the sector is back on its feet.
It's time for a government change in your country. It really is. Bushes admin has endangered your economy long enough. Making the majority of the people getting less buying power is one of the most dangerous things to do for the economy.
Also note that the Chinese stock fall has caused a fallback globally on the stocks. However the US stock exchange has recovered the very next day. Today the same is happening here. If a recession is pending this would certainly not have happened this fast. There still is a lot of optimism in the stock climate.