GLOOM and DOOM !

America which drives the world economy appeared to be heading towards a dangerous recession for sometimes, only that very little was being said about it. I learnt though that when the Banks there cut interest rates, there were some very optimistic signs-so we probably think there is a problem but the problems can be fixed!

Hello Red, The link to the story is no longer active. Here is the Yahoo message I receive when attempting to access the link. "Sorry, the page you requested was not found. The story or page you were trying to access may have expired...." Without any details from the story, it's a little tough to gauge the argument that the author presented. Though, from your post, and the responses it sounds as though the article may be typical doom & gloom. We see this alot, though most frequently from those who either have little experience, or have a great deal of knowledge about the global financial situation. Though the market will rebound -- how much is always the great guess. There are a couple of realities that should be considered: 1. The U.S. global financial dominance will soon come to an end, unless the U.S. starts leading the world in innovative ideas & technologies again. Part of the reason for our current leaning toward a recession is that consumerism is driven by innovation. Generally speaking, most Americans (and many around the globe) already have computers, cell phones, and other such trendy gadgets. Again, generally speaking this leaves the demand side of the formula to folks who either have no need or interest in obtaining these products. Hence, the need for business to adapt. We all learned long ago that dinosaurs become extinct, no matter how big they are. 2. No matter how forward thinking business endeavors to be, there must be old fashioned stability to back up our forward leaps. This implies that many in the know are actually more concerned with the perception of other nations that we do not have: A. The tangible reserves to pay our debts. B. Military willingness to subdue intn'l bullies & thugs. This goes back to the hegenomist argument that the USA has the willingness and ability to maintain global peace, whereby trade & commerce remain the forefront. C. The commitment to technological advancement. This relies heavily on creativity and innovation being fostered among our young in their educational process. Many other nations have stepped up to the plate to foster creative thinking, while the U.S. has place in on an educational back burner. Since I am tossing a dart while blindfolded, I don't know whether I've touched on any of the authors concerns. The basis of my response lies with similarly gloomy forcasts that I've read on the financial pages. So, if I'm completely off the base, I'll ask for 'dummy' allowances.