The American economy (and the Canadian with it) is definitely in a downfall. The US dollar is falling, and there are tons of other indicators. However, there are backup plans in the US (more in Canada ). I expect that we'll be in a depression pretty soon. However, with the further affect of globalization and the interbud, anything can happen!

At the very least, we're going to see a long recession.

I was really hoping it would take longer to happen, but at least this time, the problems are piling on the president that helped cause the problem in the first place. Bush's spending on the unnecessary war really has damaged us.

Welcome, Borghunter!

So, what is the difference between a recession and a depression?

Depression is the result of a recession.

I don't know, but depression sounds worse. I think recession just means "moving backwards", while depression means down and not changing. That's my guess, anyway.

A recession in economics is defined as two consecutive quarters of negative growth. A depression is a prolonged period of extremely low consumer demand and investmrent, reduced business activity, high unemplyment, and little hope for the future.

Michigan, for instance, has been in a depression for years, while the rest of the US has pretty much moved on. So depressions and recession can be regional as well as national.

A post from my blog.




According to Goldman/Sachs it is and will last awhile. But this prediction comes from a company that gives a bonus of $68 million to its CEO. Just had to throw that in....for effect. The Fed will most likely cut rates again, maybe by a half a point. That should entice investors to go hog wild on the markets. Since the markets are falling like a skydiver without a chute, something will have to be done to protect the investors.

All this is just ducky, if you are investing heavily in the markets. But what about Joe Sixpack who lives on Wisteria Lane? What is being done to help them face the economic crunch? He/she is facing rising food costs, rising gas prices, jobs loss, a credit crunch, and a housing dilemma; so what is the FED doing to help the real person struggling to provide for their family?

Consumers, average working Joes and Joans, make up 66% of the economy, but yet they are totally ignored until it is advantageous to report on them.

A coming recession? If you are a worker--you are already in a massive, deep recession. Can this be changed? Hell yes, but you will have to vote for change...unfortunately, I see little change coming for the average American, no matter who or which party is elected. Buck up!


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Maybe more voters will turn out to have their voice heard for change. We are seeing big voter turnout in the election process so hopefully they finally wake up and speak out for change too.

But look at Michigan. McCain told the truth and lost. Mitt lied and they all bought. I do not think that the voter has a good grasp on what is up with the economy.

The FED has a worsening outlook,


Government reports released on Wednesday provided additional evidence that the economy was slowing amid credit problems and the housing downturn and raised expectations that the Federal Reserve is likely to cut interest rates when it meets this month.

Businesses surveyed by the Fed said that economic activity slowed at the end of 2007, weighed down by a decline in holiday sales and tighter conditions in the housing market. Mortgage lending rates dropped, and home values continued to fall.


LINK

And they are talking about ways for the government to prop the economy up instead of fixing the problems that caused all this. The nations plastic lifestyle is starting to melt.

Seems to me the downturn in the economy is a direct result of the policies and, at times, ignorance of the present administration. Their PNAC ambitions and pseudo-christian sensibilities have dealt the nation an economic deathblow that will take years of recovery. Simply ask yourself why the Canadian economy is thriving while the American economy languishes. People should have given it more thought before they voted Dick Cheney president.

Hello eddielwo. Welcome.

I agree. The Republicans can take the heat for this recession. Now they are doing too little too late.

It's impacting elsewhere. This week, London had the worst stock market crash since 0/11. It's being linked to the U.S. economy. Worse is being predicted. I understand Bush has reacted by lowering your interest rate.