Could we be headed into a depression?

Question

I am just asking becouse of the war and gas prices and how alot of people are losing there homes and banks are shutting down so i am pretty scared

Answer 1

The crucial thing to understand is the trillions of dollars of bad loans that have been shifted to Fannie Mae and Freddie Mac and guaranteed by the Federal Reserve Bank, thus, it is all shifted to the national debt, which is already about $10 trillion. Estimates of these bad loans run as high as $9 trillion. Put it all together and the dollar collapses, gas goes out of sight, war continues, joblessness spikes etc. Depression? Well, it is not what anybody would call humorous or uplifting.

The U.S. Congress seems to prefer to concentrate on lesser challenges and now is considering a second "economic stimulus package."

We will see what their priorities are when they all fly back in from the five-week vacation.  

Answer 2

Yes we could.  Some states in the US are still doing ok, but not all.  Where I live we have 10,000 unemployed people and only 200 minimum wage jobs available.  We've been hit pretty hard.  When the rest of the country catches up, it will be like a depression.  It might not show that way on paper, but people will be living it.

*Unemployment in my town is at 7.9%

Answer 3

A lot of people are losing their homes because they were dumb and purchased way more home than they could afford to start with. Then when the market slowed down and they couldn't sell fast enough they lost the house. More people got whats called an adjustable rate mortgage, when the interest rates went up, their house payment went up with it and they could no longer afford the house and lost it.

Basically it was a lot of stupid people making stupid mistakes that I shouldn't have to pay for.

Answer 4

only if obama is elected.  He wants to increase taxes when we are in a recession... that will be disastrous, and yet all the college students who are voting for him dont realize this.    

Answer 5

Geeeee, I thought we were ALREADY there!!!

America has ruined it's oceans, plagued it's air, over-crowed itself and extended welfare waaaay beyond comprehensible levels.

We have minimal Health care, Over extended mortgages, Increased unemployment, wasteful resource habits and yet we still find it necessary to finance a war that costs 9 MILLION dollars a MONTH, PLUS another 12 Million a MONTH in unforeseen ridiculous "projects."

I deal with an Australian and a UK corporate executive, and the news that is broadcasted in these countries paints a pretty bleak future of U.S. prosperity unless current situations are quickly turned around.  

Answer 6

Just a major correction  

Answer 7

no the fact that gas has gone down shows some improvement. the banks were stupid and gave loans to people who couldn't afford them those are the people losing their homes