Top economist: Recession will dwarf dot-com crash !!

[John Beckett]

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The recession facing the United States is of a scale that dwarfs the dotcom slump.

The slowdown will cause a damaging regulation backlash as governments attempt to compensate for the financial pain facing families. Britain faces a similar plight, though it may avoid as deep a slowdown as the US.

It is a sign of the times that they are now close to the consensus. This year's event has been dominated by discussions of the stock market slump on both sides of the Atlantic, the Federal Reserve's emergency interest rate cut and the SocGen fraud disaster.

But underlying everything has been the silent truth that the US is facing a very possible recession, and is fast having to adapt to a far less enjoyable economic climate.

"We have, as relatively sophisticated, well-developed economies, gotten hooked on credit as never before," said Roach, speaking about the UK and US. "If we had been running our economies the old-fashioned way, for example, where saving and consumption were funded by income, maybe we wouldn't be in this mess we are in now.


http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/01/28/ccusecon128.xml&CMP=ILC-mostviewedbox



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[a.baker]

LOL Do you know how many times me and my husband argue about getting a credit card. I say no and he says yes. But he does have a good point. It is hard to build up credit unless you get a credit card now a days. So we got one for a very small amount but it is always paid off except for 5 dollars so we can build up some credit.

[kay-gee]

Wise move a.baker. A credit card is kind of like a knife. A great tool, but in the wrong hands can be a dangerous thing. I have known so many people who have gotten themselves into a financial black hole because of credit cards. More times than not, it is human desire and materialism that causes it. Remember when God told Cain that sin is crouching at the door but you can master it. Apply the same principle to credit card. It is yours to be master over. Use it wisely and constructively! You will find it will help to build up a credibility and credit history, which will help you later on, particularly in buying a house etc...

all the best...

[a.baker]

LOL your right in your comparison Kaygee :)

[kay-gee]

Calling all Americans!...come to the Bahamas... We need your money!

We are seeing a dramatic drop in the number of American tourists on our island and the local businesses are suffering a bit. I am wondering if you are begin to feel the pinch of economics and are not travelling. I realize also, the police state that air travel has become. But don't be afraid...Come on down!

all the best...

[a.baker]

I think a lot of it has to do with the pinch of economics.

[CoreIssue]

Yep. The world is being crunched, not just the US.

[Jessie]

Calling all Americans!...come to the Bahamas... We need your money!

We are seeing a dramatic drop in the number of American tourists on our island and the local businesses are suffering a bit. I am wondering if you are begin to feel the pinch of economics and are not travelling. I realize also, the police state that air travel has become. But don't be afraid...Come on down!

all the best...


as it effects us its gonna affect the world.

KG, the economy is NOT good at all here in oregon.

I dont care what they say on the news, we have so many people that just keep coming, and there are no jobs.

there is NO extra money like there used to be.

should get interesting in the coming months to see what happens.

[kay-gee]

Let the good times roll...the Dems are coming back!

all the best...

[a.baker]

I would say everyone needs to conserve, even if they can afford to throw away, I think a lot of things would be better if everyone conserved. Electricity, water, trash, food, materials ect....

[Jessie]

Let the good times roll...the Dems are coming back!

all the best...


we wished. it aint gonna happen.