Are we yet to see the real economic problems?

Question

Serious issues in USA when things looked to be getting better - the UK is probably in worse situation due to higher level of borrowing per head- on property etc..... rising resorce prices etc... i reckon at least 2 -5 years of substantial finnicial difficulties etc for the west..nah the world!!... - you?

http://uk.news.yahoo.com/afp/20080712/tts-us-economy-property-finance-stocks-f07322e.html

Answer 1

yes, we have to see yet the real problems but i think the worst period will last a short time because the world can't afford a long crisis

Answer 2

My friend in finance thinks things will get worse in the short term, but gradually they will get better again.  Could take a while  -  perhaps more than 5 years. Meantime, I am cutting down on unnecessary spending.  I picked up lots of good ideas from Oprah's Debt Diet and similar pages.  

Yesterday we had news that electricity is going up here (Ireland) by almost 20% in August.  Along with switching off lights and appliances, if I go to bed earlier, I'll need less light and heating.    Little changes done daily will add up.  And if I am asleep before that late night snack, I might even lose some weight besides.  Hmm, that sounds like a  plan....

Answer 3

Things wil not get better in the long term, the american economy will collapse within 4 years time. Expect a fluctuation in the economy from now until then, one that might throw you off and make you believe the economy will be alright, it wont. Invest in another currency other than the dollar, or you will lose everything you have. Economies go through ups and down, but ever once in a while, they collapse and are left to rebuild, we are at the end of a bigger eonocmic cycle and the future will be in other economies.

Answer 4

A lot of my peers (who work in finance) predict an economic recovery within 2-3 years.

They tend to avoid the term "economic problems" but rather see the current situation as "economic adjustments".

But again they could be just optimistic...