Don't look now: Here comes the recession

Don't look now: Here comes the recession

money.cnn.com

By Colin Barr, senior writer

NEW YORK (Fortune) -- The cash registers were ringing on Black Friday, but make no mistake: American consumers are jittery, and seem all but certain to push the U.S. economy into recession.

After years of living happily beyond their means, Americans are finally facing financial reality. A persistent rise in energy prices will mean bigger heating bills this winter and heftier tabs at the gas pump. Job growth is slowing and wage gains have been anemic. House prices are sliding, diminishing the value of the asset that's the biggest factor in Americans' personal wealth. Even the stock market, which has been resilient for so long in the face of eroding consumer sentiment, has begun pulling back amid signs of deep distress in the financial sector.

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Related News Links:
biz.yahoo.com
www.reuters.com

I am in no way an expert regarding finance but with the declining dollar and shoppers going deeper into debt for the holidays the future does not look bright.

Citigroup received $7.5 billion from Abu Dhabi and will figure their portfolio from $11 billion to $8 billion. Couple this with a plunge on Wall Street due to investors being worried about rising mortgage defaults and credit market losses. Thing are shaping up for a very ugly Day after Christmas.

Will we see a possible collapse of the market In January 2008? Currently I do not see a resurgence of the market only a possible Fed injection to prolong agony. As mortgages continue to increase in defaults and the market continues down the American tax payer will be left holding an empty sack.

IMHO the American public is being set up by the Fed to accept the demise of the dollar in order to issue in the NAU and Amero.

money.cnn.com
(visit the link for the full news article)

IMHO the American public is being set up by the Fed to accept the demise of the dollar in order to issue in the NAU and Amero.

It sure feels like it.


Can someone, anyone..., please paint me a rosy picture about an economic rebound? Seriously. I see nothing but doom and gloom with a hint of total economic collapse.

It is times like this that make me wish that I never read "The Road".

Here's a link to a news item you guys should see. It demonstrates what's going on out there and how desperate people are for credit. In the story it's clear these people have no way or any inclination to repay the money, but will grab at any straw to try to keep afloat. Recessions come and go, usually at least one in every decade, but this is getting set to be something much worse. Watch the video.

Originally posted by mythatsabigprobe
In the story it's clear these people have no way or any inclination to repay the money, but will grab at any straw to try to keep afloat.

That's what struck me when I read that story, people calling their friends to tell them to come and get some 'free money'. I'm no economist but from what i've gathered a large part of the boom over the last few years has been down to people's willingness to borrow and keep on borrowing way past any sensible level to keep up their standard of living. Calling a $4000 credit card 'free money' seems to sum it all up really.

It's meant great times for the banks and corporations but it's the borrower who suffers when the credit line comes to an end and they realise that money must be repaid somehow....with interest.

Well I have many idiot friends that have mortgaged themselves upside down on there houses sure they have nice 4X4 trucks with all the latest goodies, motorcycles, boats, ATVs.
I have none of these and at times felt kinda left out but now that my house payment is half what theirs is I don't feel so left out..

never ever ever mortgage your house or get a second mortgage ever
it is a piss poor idea to start with but even worse when that boat or car or motorcycle costs you your house that you can't sell cause it is no longer worth
what you borrowed.

I tell them the same thing I just said here and some don't like it. others just say oh # I so know..

Respectfully
GEO

reply to post by mythatsabigprobe


Thanks for the link to the K-mart fight.

"They were having a big fight. Two ladies was jumping a lady over credit cards," witness Sylvester Wilson said.

Nearly a dozen Wauwatosa squad cars responded to the call just before 11 a.m. Saturday for what was called a large fight in progress.

Has it gotten so bad in the US that you now have to fight over credit cards? The reports from Wall Street are not rosie but when the public starts fighting over c cards things are really bad.

Seems like it's been here a while for me, at least in Michigan. Things have been bad here for quite some time. I'd say we have a headstart on that recession.

Here is the latest from the Fed...does anyone really think that this will help?

Bernanke Hints Further Rate Reduction May Be Needed to Head Off Economic `headwinds'

WASHINGTON (AP) -- Federal Reserve Chairman Ben Bernanke on Thursday hinted that another interest rate cut may be needed to bolster the economy. The worsening credit crunch, a deepening housing slump and rising energy prices probably will create some "headwinds for the consumer in the months ahead," he said.

Link to source