The world recession expected to be worse than 1998 financial crisis.?

Question

The world recession expected to be worse than 1998 financial crisis.?

Answer 1

This banking crisis is the worst since the Great Depression. We are already seeing bank failures and will continue to see more. The fact remains that money with no real value created out of nothing cant create wealth. Fiat currency is not honest money and its use all through history always ends the same way. The currency is worth less and less and then becomes worthless. People dont want to believe how serious this is. Those that have read and know history have seen this comming for many years. The bubbles have collapsed and there is nothing that the Federal Reserve can turn to to create another bubble to keep the scam going. This may very well be the worst depression in history. http://news.goldseek.com/RonPaul/1215976...

Answer 2

This is different than the "Asian Contagion" of course. But it is also a financial crisis. This time the bubble was in housing and with mortgages.

I think the financial industry creating a separate banking system based on using mortgages that went unregulated and got WAY out of whack with over leverage.

I think there will be more pain in returning to more conservative principles and lending.

On the other hand, many developing countries got a real start in becoming  more developed during this bubble and globally we will likely end up better off, imo. Despite the short term pain.

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****"It could be twice as bad and still mean nothing in the scheme of things. In 1998 the Dow first reach 9,000. Ten years later it's over 11,000. That's FREE MONEY.

What crisis?****

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Ummm that is little over a 2% annual return for the DECADE.

At the "average historical" gain of 11% a year we should be at 25,000 now, not 11,000.

At that "normal" gain we should have been at 11,000 in two years, not ten.

And that 2% is less than inflation. The "buy and hold" people have been losing money in real dollar terms.

Thank supply side economics. Only the rich got richer, the rest are losing.

Answer 3

"I believe we're going to go into recession, I think the second half will be worse than the first half, and the recession will last into 2009."

The primary factor leading to recession will be a decline in consumer spending, internal economic turmoil of the US economy and rising inflation.

I believe that will be worst.

Answer 4

It could be twice as bad and still mean nothing in the scheme of things.  In 1998 the Dow first reach 9,000.  Ten years later it's over 11,000.  That's FREE MONEY.

What crisis?

Answer 5

The economy has appeared to be incredibly resilient despite everything thrown at it. With the high cost of energy and oil, the sub-prime mess, the drop in the dollar. And we still haven't had a quarter of negative growth and unemployment rests at only 5.5%. If we do things right, this could be a relatively shallow recession. I do fear an Obama presidency who promises increases in income taxes, dividend taxes, capital gains taxes. An increase in taxes on oil, the refusal to drill for more, avoidence of nuclear power, increased government regulation. We've worked so hard to make this a shallow recession and everything Obama promises could ruin that.

Answer 6

I am usually optimistic but there is nothing to be optimistic  about. House prices are going down, oil price are so high they are forcing inflation up. Money is to hard to borrow for buisiness because of the credit crunch and the jobs are being lost. Here in england the house builders have cut 1000s of jobs this week. Most recessions last about 5 years so baten down the hatches people its not looking good.