Is this the beginning of the end for our economy?

Question

Will it get better or will it remain for many, many years to come? Is this a bad time to go to college? What do you think, can it be fixed?

Answer 1

i think its just a slow down i would not change any plans it will get better it always does . I aint worried

Answer 2

..People need to stop worrying so much over the economy.  Yes it is bad and yes things are hard for some, but it is NOT going to get to a breaking point nor will we be any worse than a recession.  We won't head to a collapse, a break, or a depression.  I will say this now- please calm down everyone.  Panic is not good and will have the way to make things worse.  I agree things are bad. I agree that its been hard for people during this time, but things will get better.

One good sign is this- Henry Paulson, Secretary of US Treasurey, recently said that it will take months for housing market to improve (and recover.  Not years).

Other good signs are that we aren't in a recession- our GDP will have growth of 2% by one estimate-  and several economists think that oil prices have reached their peak.

Our economy is strong.  It will make it through this rough time..and a college education is worth it, there is still much financial aid for students.  Our economy will recover, in my thoughts, by a year-2 (and that's a very conservative guess by my opinion).

Answer 3

Why not go to college now? Then when you're done it may have stabilized...

Answer 4

Hey, if the Great Depression could be fixed so can this, don't worry.

Answer 5

You spend too much time on MSNBC. No, the sky is not falling. We are going through an economic period of deleveraging and deflating the housing and oil bubbles -- very much like what we did in the early 80s. You may not recall the early 80s, but that was the start of one of the longest lived economic booms in history.

Answer 6

The crisis is caused by lending. Banks lend the money you put in your bank account. When the money is loaned, someone buys say a house and the seller then puts the money into their own account, which is loaned again. This creates inflation, causing the price of things, especially houses, to go up, causing more lending.

Fortunately, there is some kind of regulation to this scheme, specifically the banks can only lend a certain proportion of their money. Unfortunately, this results in financial crisis when the banks find they can no longer loan money, so no-one can buy houses or get credit for starting businesses.

Fortunately, the banks will have a large debt portfolio at this point. Lots of people paying off loans will make the bank enough money to start lending again. So recovery is more or less inevitable.