Economic Recovery or Vicious Cycle?
On the one hand:
LIBOR rates have come down. Lending is picking up. Stock market is rising.
On the other:
Lending standards are being relaxed. Example: GMAC lowering required credit score/rating for 0% loans.
Isn’t this what got the wrecking ball rolling in the first place, when housing loans were made to less than qualified borrowers?
Methinks the piper will be paid by hyper-inflation and painfully high interest rates down the road, and those who lost the most in ‘08 before despondently cashing out will be lured back in just as this bear market rally peaks. And if they ran to the “safety” of T-Bills they’ll quickly see the value of those instruments deteriorate as rates inevitably rise.
Caveat emptor. Buy and hold could leave you broke when old.
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I am going to have to say vicious cycle. I mean lets throw money at already failing businesses
It depends: if, for example, the interest rates will fall (leading indicator) than an economy can recover and fall. But in general, when the leading indicators will decline, then the economy will fall.
The total of all indicators seems to indicate that the worst of the recession is over, that the economy has bottomed-out, and is just beginning its recovery.
though, the unemployment has not recovered yet and there is still a huge number of jobless out there, I do believe that the economy is on recovery.
People are told that they have to rely to the government for help and economic solution. Do you believe that Obama leadership is using economic recovery plans to introduce socialism to Americans?
No – Obama is a capitalist politician, not a Socialist. All capitalist politicians support government intervention in the economy to one degree or another.
Such government intervention has nothing to do with Socialism, as it leaves the basis of society (a smallish number of people owning the means of production, and the rest of us having to work for wages to try and stay afloat) completely unchanged.
Socialism is the abolition of the wages system, and is the framework within which human problems can be solved: poverty, homelessness, exploitation, environmental destruction, war.
Yes, it always recovers. Even the Great Depression only lasted 11 years. The 1981 recession lasted 2 years..
Asia and European countries are blaming the united states, for world global recession are they correct?
Go overseas you will see they have been paying 10 dollars a gallon for gas for along time! They are riding bicycles! We are wasteful,spoiled brats who live way beyond our means and have a lot of CEO s cooking the books making us look all big and bad when we are not. Cheating is catching up with all of us around the world!
The mainstream media keeps talking about how the economy is on the rebound and that recovery is right around the corner… What I want to know is how can you have an economic recovery when the unemployment rate continues to rise?
Liberals believe in fantasy utopias so in their minds you can easily have an economic recovery with no new jobs, or at least with plenty of made-up, pretend jobs that only exist in the vice president’s mind.
I think that people have either forgotten basic economics or just don’t listen. Jobs are ALWAYS the last thing to recover in an economy in a recession.