Are we goin to depression?

Question

Today i heard some guys talking about us going depression and im scared. are we goin to depression?

Answer 1

Well as far as I and probably most of people around heard about a crisis or a depression... the US market has been falling as well as the EU market, the fuel's price is icnreasing everyday ~~ a new depression may be comming or not, we can't see the future but i think we shouldn't worry too much about it, when people worry too much then the depression happens for sure :\

Answer 2

I doubt it.  The thing about the great depression is, we had all sorts of financial problems (like we have now, maybe not even as bad) but when the problems came up the government did nothing, hoping the free market would fix them.  Instead of the free markets fixing the problems, one bank failure caused another and then another until soon everyone was in trouble.  This time the problems may be worse but the government and fed are very actively working to fix them (like waht they did with Bear Sterns).  I really think the problems are huge and will take years to work out, but eventually they will get worked through.

Answer 3

Probably not.

Is it possible? Sure.

Likely? No.

Since the creation of the Federal reserve (FED) we have learnt a lot and managed to control the tendency for the market to have extreme fluctuations. The FEDs job is to reign the market in during those great years and help the market along during the not so great years. The FED has learnt a lot during the last 70 or so years and though they probably have a lot to still learn, their influence has kept our economy relatively stable through the latter part of the 20th century.

How bad is our current situation?

The scary part is that no one knows. We have the subprime mortgage crisis on one end which has resulted in an overall credit crisis. Additionally, we are seeing drastic increases in the cost of food and gas. Most analysts beleive the worst is behind us, but no one can be sure.

Is a recession a bad thing?

Not at all. A recession is part of the economic cycle. Our economy generally sees 5 bull years followed by 2 bear years (generalization). The good news is that we have more "bull" or good years than the "bear" or bad years. Recessions are just a part of the economic cycle and we tend to have them every so often.

Why is a depression scary?

The Great Depression resulted in a 25% unemployment rate. Our unemployment rate of 5.5% today is not bad from a historical standpoint (even if you focus on the last decade). A depression could conceivably result in extensive unemployment as well as significantly impact the money many of us have in investment vehicles.

A depression is highly unlikely. In fact we are not yet in a recession. The generally accepted definition of a recession is two quarters of negative growth. So far this year, we have not seen a single month of negative growth. Our growth rate is barely positive, but from a technical standpoint we are not yet at a recession (note that the body that decides whether or not we are in a recession does not always follow this rule of thumb; additionally, they generally do not announce a recession untill it has already passed).

Think of a recession as an opportunity to buy equities at inexpensive valuations. Keep investing money (dollar cost average) and things should end up fine.

Answer 4

with obama its a guarantee pretty much..and since mccains cap n trade was shot down its very unlikely we will

we should be safe for now

its just scare tactics to freak people out to vote 1 direction or another

Answer 5

sadness or crying that you can’t explain

major changes in the way you eat such as not eating or over-eating

being crabby, angry, worried or nervous

feeling negative or not caring about anything

feeling guilty or worthless

thinking about death or committing suicide

sleep changes, such as sleeping more or having trouble sleeping

not being able to focus or make a decision

not being able to enjoy the things you usually enjoy

not wanting to spend time with your friends

feeling restless or tired most of the time