consumer spending a key to economic growth
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From: Baltimore
consumer spending a key to economic growth
i have my econ final exam toay, and i must say, after everything i've read, i truly believe we (everyone in the world) must spend mucho dinero to get the world economy going 
but since i'm unemployed i can't afford to do that
and i'm sure the 23,000 people lucent is laying off plus the 10,000 people cisco laid off are not doing that either... and it snowballs through the multiplier effect (or the lack thereof)...and now we're in a quandry...
let's spend spend spend!
but since i'm unemployed i can't afford to do that
and i'm sure the 23,000 people lucent is laying off plus the 10,000 people cisco laid off are not doing that either... and it snowballs through the multiplier effect (or the lack thereof)...and now we're in a quandry...let's spend spend spend!
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From: Poconos
I think this economic downturn is rather tame. And I say downturn NOT recession. I hate it when people throw out that word without regards to its meaning (I see "gurus" on tv toss it around) - Two consecutive quarters of negative GDP.
Many industries have been in a slump for a while being overshadowed by the past explosive growth in the technology sector - in jobs and stocks. When investor confidence waned in internet stocks they crashed. These Companies had no earnings, yet stayed in business and expanded using their stock as currency. When it dried up it caused a snowball effect - less spending for products/services from other companies.
For the past few years people thought the stock market was a cash machine. Just buy techs and you'll be rich (when you see commercials with soccer moms running home to trade you know things are getting out of hand). Many people weren't diversified and took big hits.
The baby boomers and later generations have very poor money handling habits. Very few actually save money (cash), most households have credit card debt exceeding $7000. Nobody asks how much is it; its how much a MONTH is it. Its a recipe for a disaster. People need a reality check. This downturn could be a GOOD thing.
My prediction is that in the next 10-15 years they'll be a depression. Baby boomers retiring will realize their nest egg has dwindled and they're deep in debt. Couple this will population expansion and energy shortages; times will be tough. Probably another big war will break out soon after. People are people, and history repeats itself.
Sorry for the morose prognostication, but thats what I'm seeing.
Many industries have been in a slump for a while being overshadowed by the past explosive growth in the technology sector - in jobs and stocks. When investor confidence waned in internet stocks they crashed. These Companies had no earnings, yet stayed in business and expanded using their stock as currency. When it dried up it caused a snowball effect - less spending for products/services from other companies.
For the past few years people thought the stock market was a cash machine. Just buy techs and you'll be rich (when you see commercials with soccer moms running home to trade you know things are getting out of hand). Many people weren't diversified and took big hits.
The baby boomers and later generations have very poor money handling habits. Very few actually save money (cash), most households have credit card debt exceeding $7000. Nobody asks how much is it; its how much a MONTH is it. Its a recipe for a disaster. People need a reality check. This downturn could be a GOOD thing.
My prediction is that in the next 10-15 years they'll be a depression. Baby boomers retiring will realize their nest egg has dwindled and they're deep in debt. Couple this will population expansion and energy shortages; times will be tough. Probably another big war will break out soon after. People are people, and history repeats itself.
Sorry for the morose prognostication, but thats what I'm seeing.
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From: Poconos
Its NOT a recession. Textbook definition is 2 consecutive quarters of negative GDP.
Job security is a thing of the past. It all comes down to the company's bottom line and if they can hold together a few extra cents on their EPS they'll let people go.
The cause is relevant in conjunction to peoples regards to the stock market, their spending habits (feeling richer because of inflated stocks), and the layoffs to maintain capital for companies.
Everything is leading up to problems, reality check is needed. A good thing is that when more people are out of work the "spend on borrowed money habits" will change.
Job security is a thing of the past. It all comes down to the company's bottom line and if they can hold together a few extra cents on their EPS they'll let people go.
The cause is relevant in conjunction to peoples regards to the stock market, their spending habits (feeling richer because of inflated stocks), and the layoffs to maintain capital for companies.
Everything is leading up to problems, reality check is needed. A good thing is that when more people are out of work the "spend on borrowed money habits" will change.
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