You're completely right about the cycle you described, but your last two paragraphs make it seem like it is a random cycle. We are losing jobs because many of the jobs we have built up over the past decade were built up with borrowed money and are not sustainable; it is simply not possible for these jobs to create as much wealth as they demand in pay. This in turn causes businesses that served these previous workers to contract, but they too were unsustainable because they depended on people with unsustainable jobs. It's unstoppable. We're realizing that we simply do not create as much wealth as we consume. People will have to take lower paying jobs and spend less money. But the cycle will stop once we do this.
This economy is not in a recession, it is in a Depression. A recession is marked by an economic downturn, which can be lengthy at times, but does not result in a complete global economic stand-still. The financial crisis which swept through the banking system during late 2007 through present has just recently begun to sweep through the economy as a whole. This is a global crisis on a scale of which we probably will witness just once during our lifetime. No we have not hit bottom, hundreds of thousand(possibly millions) of Americans will lose their jobs this year, and the housing market still has about 18% left to decline. Many retailers will close. This is a scary time we live in. Oh and at some point all of that money that the Fed has injected into the economy will come back, devaluing and possibly destroying the dollar. Inflation/Hyperinflation. When it does happen it will be swift and violent. That may not be in the next few months but it will happen.
yahweh3771t3Feb 11, 2009
Burried as inaccurate...Compare it to the real recessions of the 70's and 80's
murrdpirateFeb 12, 2009
You're completely right about the cycle you described, but your last two paragraphs make it seem like it is a random cycle. We are losing jobs because many of the jobs we have built up over the past decade were built up with borrowed money and are not sustainable; it is simply not possible for these jobs to create as much wealth as they demand in pay. This in turn causes businesses that served these previous workers to contract, but they too were unsustainable because they depended on people with unsustainable jobs. It's unstoppable. We're realizing that we simply do not create as much wealth as we consume. People will have to take lower paying jobs and spend less money. But the cycle will stop once we do this.
mslaceyFeb 12, 2009
This economy is not in a recession, it is in a Depression. A recession is marked by an economic downturn, which can be lengthy at times, but does not result in a complete global economic stand-still. The financial crisis which swept through the banking system during late 2007 through present has just recently begun to sweep through the economy as a whole. This is a global crisis on a scale of which we probably will witness just once during our lifetime. No we have not hit bottom, hundreds of thousand(possibly millions) of Americans will lose their jobs this year, and the housing market still has about 18% left to decline. Many retailers will close. This is a scary time we live in. Oh and at some point all of that money that the Fed has injected into the economy will come back, devaluing and possibly destroying the dollar. Inflation/Hyperinflation. When it does happen it will be swift and violent. That may not be in the next few months but it will happen.
vintageozarksSep 18, 2009
exploring some of vintageozarks past comments.