Tilted Forum Project Discussion Community - View Single Post - Do you think we are headed for a recession?

aceventura3 · 01-14-2008, 01:31 PM

Are we headed for a recession? That is the question here and in many headlines. A better question might be why are we headed for a recession?

On one hand slow or negative growth in the US will lead to fewer imports into our country, putting economic pressures on countries that export to us. They may be forced to re-value their currencies relative to the dollar.

Slow or negative growth may lead to lower real long-term interest rates. Lessening the impact of ARMS scheduled to reset.

Slow or negative growth may pressure Congress for more tax cuts or making the Bush tax cuts permanent.

Slow or negative growth may pressure oil producing countries addicted to the new income from high oil prices to increase production causing the price of oil to drop.

Slow or negative growth may lead to the economy becoming the number one issue in the up-coming elections. Many people believe Republicans can win on that issue but not on the issue of Iraq (a vast right-wing conspiracy).

Whatever happens and whatever the reason you can bet 'smart money', i.e. 'the rich' are going to come out ahead and average working people are not going to know what hit them. Working poor people will be less likely to be able to buy homes because of increased mortgage regulations. The prices of import goods will go up. Working middle class people will give up more control of their financial lives in the interest of "economic stimulus packages". Our only hope is that we ignore the doom and gloom headlines and hope the elected folks in Washington don't screw things up too badly.

01-14-2008, 01:31 PM	#7 (permalink)
aceventura3 Junkie Location: Ventura County	Are we headed for a recession? That is the question here and in many headlines. A better question might be why are we headed for a recession? On one hand slow or negative growth in the US will lead to fewer imports into our country, putting economic pressures on countries that export to us. They may be forced to re-value their currencies relative to the dollar. Slow or negative growth may lead to lower real long-term interest rates. Lessening the impact of ARMS scheduled to reset. Slow or negative growth may pressure Congress for more tax cuts or making the Bush tax cuts permanent. Slow or negative growth may pressure oil producing countries addicted to the new income from high oil prices to increase production causing the price of oil to drop. Slow or negative growth may lead to the economy becoming the number one issue in the up-coming elections. Many people believe Republicans can win on that issue but not on the issue of Iraq (a vast right-wing conspiracy). Whatever happens and whatever the reason you can bet 'smart money', i.e. 'the rich' are going to come out ahead and average working people are not going to know what hit them. Working poor people will be less likely to be able to buy homes because of increased mortgage regulations. The prices of import goods will go up. Working middle class people will give up more control of their financial lives in the interest of "economic stimulus packages". Our only hope is that we ignore the doom and gloom headlines and hope the elected folks in Washington don't screw things up too badly. __________________ "Democracy is two wolves and a sheep voting on lunch." "It is useless for the sheep to pass resolutions on vegetarianism while the wolf is of a different opinion." "If you live among wolves you have to act like one." "A lady screams at the mouse but smiles at the wolf. A gentleman is a wolf who sends flowers."