How will the US economic crisis affect the rest of the world?
By repzkoopz
@repzkoopz (1895)
Philippines
September 20, 2008 1:16am CST
i guess its already imminent.. the US economy is getting worse. some of their largest financial institutions are filing for bankruptcy. and unless this crisis is resolved, the rest of the world is sure to be affected.
here in the philippines, the government is already trying to convince the filipino people that we will not be affected by the closure of those financial institutions. but hey, nobody needs to be a genius to actually think we won't be affected by this crisis. majority of the investors here are based in the US. most of our banks have investments in Lehman and the others. we will definitely be affected! by how much? who knows.. and i don't think the government (or the Central Bank, at least) will actually reveal such numbers.
how about you guys.. what do you think?
here in the philippines, the government is already trying to convince the filipino people that we will not be affected by the closure of those financial institutions. but hey, nobody needs to be a genius to actually think we won't be affected by this crisis. majority of the investors here are based in the US. most of our banks have investments in Lehman and the others. we will definitely be affected! by how much? who knows.. and i don't think the government (or the Central Bank, at least) will actually reveal such numbers.
how about you guys.. what do you think?1 response
@sharra1 (6340)
• Australia
20 Sep 08
I think it depends on how much the other economies are tied into the US. In Australia we have banks that are owned by the banks that are in trouble in America and if they go under then it will hurt us and all the people who invest in it.
Our superannuation funds could be in trouble if the companies that run them go under. It could be very nasty. I am glad that my super is with the government and so safer than the ones with private companies and our savings banks are backed by our reserve bank which is backed by the government.
I hope the situation does not get too bad but I do think America is headed for a recession and with the way the world economy is linked these days that will reverberate around the world. Other people will get hurt and they should try and protect themselves. I moved my super money from shares to cash. It does not earn as much but the stock market is losing money and my super isn't. I just hope it is enough as I will have access to the money in a few years. I feel sorry for the people who cannot touch their super or move it into a safer investment.
@repzkoopz (1895)
• Philippines
20 Sep 08
i can't agree more.. unfortunately here in our country, we are very dependent with the US. i just hope this crisis doesn't affect our country real soon, coz right now, we are already in crisis. gas prices are soaring (even though they should be going down), food shortage (when in fact we shouldn't be having such), and the circus called government (if you're familiar with our local politics, i'm sure you'll find it similar to a circus). 
