are we heading for a global double dip recession?
By francesca5
@francesca5 (1344)
August 4, 2011 3:42pm CST
i just read in the news how its been a bad day on wall street, and there are fears that the euro could collapse, as having just bailed out greece, it now looks like they might have to bail out spain and italy too.
and there are fears that there might be a global double dip recession.
however, after the financial crash we discovered that expert economists were bad at predictions (and economics too) so what do people on mylot, who probably know far more about the real world, think?
1 person likes this
3 responses
@ParaTed2k (22940)
• Sheboygan, Wisconsin
4 Aug 11
Nope, because we're still in the first dip.
2 people like this
@2wicelot (2945)
•
5 Aug 11
The euro situation is a little bit confusing I think. It is a union of states with a common curreny and other common issues but yet they behave as separate independent states. I think there should be a balance that is the stronger nations should help the weaker ones and also the weaker ones should be encouraged to get stronger. That way I think the problems will be minimised.
@francesca5 (1344)
•
5 Aug 11
yes, i think the problem is that the german electorate don't like being the ones who keep on doing the bailing out, though.
i think they either need closer fiscal and political links, or it will collapse, but i am not sure if the political will is there for the closer links.
and though i agree that the stronger states should help the weaker ones its easier to do that with a small country, but much harder when somewhere like spain or italy are in trouble.
it will be interesting to see what happens.
1 person likes this
@2wicelot (2945)
•
5 Aug 11
Yes there should be more economical, fiscal and political links. But I tend to look at it like the case of the US. Just because a state or two is in troubble doesn't they have to bring the whole country down with them. I am guessing they didn't have much cohesion and links before they set up the euro in the first place.
@BalthasarTheRat (656)
• United States
6 Aug 11
Recession, depression and even super successful growth are just products of our collective economic optimism (or pessimism). Without fear in the marketplace and unrealistic expectations in corporate earnings we wouldn't have to worry about these silly terms.
This last slow down didn't pop into growth far enough to really call it a successful end to recession. With the concern over oil at an all time high and the cost of living on life support, too people are still in a precarious position. The governments of the world cannot continue to spend like they have in the past 30 years and they resulting cut backs will undoubtedly drive down any economic gains. Less government spending means less money circulating and businesses failing to make their projections. Many companies need to restructure their upper echelon pay rates to ensure further profitability or risk scaring the collective stockholders of the Western World. That's where the final straw would break. As recently seen by the stock market losses, investor confidence is everything.
Bottom line: We are not out of woods, actually we've just started seeing the trees! Alot of corporations need to change their expectations or we will be in a world of hurt.
-The Economic Rat
@francesca5 (1344)
•
6 Aug 11
thats interesting.
i think we are in a very difficult situation. when i was replying to andy77e above i found myself using the word impasse to describe the situation we are in. and thats what it seems like to me, and the problem we have is that those with the most power have been the beneficiaries of the status quo, and have no desire whatsoever to move on from it.
but you are right, earners at the top in corporations are going to have to have a reduction in earnings too. it is neither economically sound, nor fair, that the lower wage earners are always the losers.
