| Re: Recession Whatever industry pulls us into a recession, it's going to hurt everyone eventually. Well, maybe not the toilet paper producers. But as fears of an all-out recession increase, the economic world is going to slow to a meditation. And that includes our general life activities, as well as our inspirations. This may be exactly what we need, a little time to rest and think; but they say growth is everything. I just don't think it's gong to happen.
I have a feeling that as people begin to hold on to their money more, they'll travel less, and stay on ideas instead of pushing towards their goals. That means consumer slow-down (in a big way) and a lack of economic growth and turnaround potency. Most of this is already happening, but a little less bad news could really help the situation.
Half of all economic decline is outlook, and the media is not really helping. All the numbers are up, but when we hear all this gunk about major industries and financial instutions feinting ballout, it leaves a lot of people with their hands in their pockets. They're not reaching for cash, though. And they're even further away from buying or building anything.
Though horrible, it'd almost be nice if a country other than ourselves invaded someone. FDR's practical epiphany (though understood throughout our economic history) was that when recession looms, the Feds must spend, spend, spend. And as everyone knows, the tried and true means of spending to offset an economic turndown is war. But notice the interest rate cuts? It's really just the reverse to encourage the same thing, general consumer spending. Instead of dumping money into the Nation via the increased production usually brought about by war, they're making money cheaper to get, hoping the same turnaround. It's creative, but I think it's going to be a disaster.
So where does this leave us? Nowhere but unsure...
Last edited by The Lion : 01-16-2008 at 09:46 AM.
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