Now, we entered the 5-th year of the financial crisis, if not more. Imho, no light in tunnel so far.
So, how long would it take?
So far the things that have not hit (or been allowed to hit) bottom yet are:
1. The US Housing Market
Things are getting better, it just takes time.
So is the US debt at around 16 trillion now.
Wait, didn't Mr. Bernanke promised to prop up the housing market with $40 billion monthly? :roll:
high debt reduces growth and instability.Ya, but so what.
high debt reduces growth and instability.
hence the housing market will limp along for years, never really recovering.
which is fine with me, i intend to buy a house here in about 3 years. it just sort of sucks for the other 300 million Americans.
I would be concerned. High debt is a problem. You can inflate yourself out of it, but then the you need high inflation which is very damaging to an economy since it causes capital flight, and makes investors even less interested in buying american treasuries.I understand that, but at the moment I'm not worried.
Maybe later, either way though, I have no control over it.
If it happens, hopefully I'll be prepared.
You should come and see the real estate prices in Europe, it will knock your socks off. Debt is just starting to go wild - the GIPSI countries, the euro is wobling, half of Spain's youth is unemployed...
Hm, I can see a pattern here:
financial crisis in America (1929) -> several million unemployed and unhappy in Germany -> Comrade Hitler comes to power -> WW2
financial crisis in America (2008) -> hoards of unemployed in Europe -> ..............................
History repeating itself, I presume?
Nah. That can only happen if the Germans become convinced that they are being drained by a Europe that is out to get them and.....
Critics had argued that the ESM commits Germany to potentially unlimited funding of debt-ridden eurozone states.
I would be concerned. High debt is a problem. You can inflate yourself out of it, but then the you need high inflation which is very damaging to an economy since it causes capital flight, and makes investors even less interested in buying american treasuries.
Remember that Greece had a debt level of about 120% before the crisis if I remember correctly. US is already at 100%.
I don't see an end to the economic problem in America until American incomes drop and overseas incomes rise to such levels as our labor costs are competitive in the global job market. Twenty years years ago Ross Perot predicted we would be in this mess Barack Obama caused. Giant Sucking Sound - Ross Perot 1992 Presidential Debate.flv - YouTube
I believe the scapegoat you are looking for is NAFTA.