US economy going down? Will it recover? - THE US Financial Crisis.

[r3roble]

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i think US can recover... but only time can tell...
it's a cycle...

[Vince Russo]

Ezra, did you interpret "Going Down" as meaning "collapse"?... Or, did you view it as "declining"? In any case, please answer the 2 questions raised in the topic before disputing my posting.

[chad_tukes]

i guess what Vince was trying to say is that the US economy is much healthier now than it was a few months ago. i had to agree with him.

[EZRA]

Yes, Ezra, I DO know what's going on.. The topic asks, "US Economy Going Down?" "Will It Recover?".. I took "Going Down" to mean "collapsing", not "in a temporary decline".. So, if YOU knew what you were talking about, you would agree with my previous post. The Dollar is UP, and that's a FACT. The US economy is not on the verge of collapse. Recovery will be gradual, but it will occur. Watch the financial news every day (I do).. The Dollar is up, and the Euro and Pound are down. Recovery from recession takes time... Give it another year before your next Doomsday prediction, bai.

Here's what you posted:

The US economy, like all others, experiences troubling times now and then. But "going down?" - No way.

No way? It is still on it's way down!! (Going down meaning "on a decline" - I take it as what it really means - and yes, WE ARE STILL ON A DECLINE!!) Lehman just announced (Yahoo Finance) about selling its holding at a 3.9 Billion loss (4th Largest US investment bank). What does that tell you? You think just because we have a spike in dollar value means we are recovering? Just because the price of crude oil dropped to about 100$ from $140 last month means we're heading back to $1/gallon 10 years ago? NO.

The county's financial sectors are still in trouble (as what LEHMAN had just proved today). And when they're down, everything else gets affected. Doomsday prediction? I've already foreseen this from last year.. see where we are right now? Are you looking at the market now? Check Goldman Sachs, Citi Group, and Wamu right now.. check their positions. Check how much AIG lost yesterday (a five point loss)?

Again - if you check the market graph of ANY financial institution from last year to now.. it is on a gradual decline.

If you think things are getting brighter, go bet on the bullish market, let's see how badly you get burnt.
By the way, I do watch CNBC during the day... before the market opens and even after the market closes.

[EZRA]

CHAD.. a few months ago Crude Oil was at $140+/barrel and gasoline was at $4/gallon. But after the Fannie and Freddie bailout, the possibility of that happening again is pretty high. Think about it - we have other banks that are in trouble, not only Fanny and Freddie .. who's gonna bail them out?

[EZRA]

I don't know if you guys can see this...



Left:
Top - AIG .. a high of 70.13/share from Oct last year to 20/share today
Mid - Washington Mutual - High of 41.50 from AUG last year to 2.80/Share TODAY!
Low - Citigroup - 51.31/share from July last year to 18.62/share today.

Right:
Wachovia ... 53.10/share high of Sept Last year to 16.05/share today
Freddie Mac - 67.20/share of August last year to .88 cents/share TODAY
Fannie May - 70.57/share as of August last year to 1.06/share TODAY

[SPRINGFIELD_XD_40]

What the US are experiencing right now is recovering and getting back on track . It may take years but its not going down . We can safely say it was downhill but will never take the dip .

[chad_tukes]

CHAD.. a few months ago Crude Oil was at $140+/barrel and gasoline was at $4/gallon. But after the Fannie and Freddie bailout, the possibility of that happening again is pretty high. Think about it - we have other banks that are in trouble, not only Fanny and Freddie .. who's gonna bail them out?

i didn't mean to say that the US economy is going on an uphill climb. just because i said the economy is healthier than it was a few months back doesn't mean it's not in a steady downturn. as to the question if it is indeed going down? yes it is. but if we talk about the economy totally collapsing, that is far-fetched.

[fish]

not just the us... but the global community is experiencing crisis.

the US economy is very big (its just the biggest economy in the world)... and it actually affects the entire world... including the philippines where most of our exports go to the US of A....

[EZRA]

Spring.. we are already in the deep end right now... the question is how long are we gonna stay here. Problem is, PAULSON opted to bail to Fannie and Freddie along with the 5 TRILLION worth of debt - this goes directly to the US BALANCE SHEET... and who pays for it? THE TAXPAYERS!!! ... But don't worry, these debts are not worthless... they're all backed by houses (mortgages) that are - by the way- losing it's value. patay!

And here's another thing... the bailout also included 1.5 trillion held by foreign central banks. FOLKS.. we just bailed out the Chinese and Japanese governments with our TAX MONEY.