I have been wondering recently if this is the “sky is falling” syndrome. A lot of these “crisis” sitiuations are as bad as we make them by overreacting to day to day changes. Very few people look long term on anything any more. I certainly am not an economist, but a lot of this seems like Chicken Little to me.
Most of these “recessions” are made worse by people who struggle to balance a checkbook and clearly have no understanding of something as complicated as macro-economics. They hear some talking head chicken little cluck about how bad it is, try to understand, can’t, and just absorb that it’s that bad.
To make matters worse are when politicians tell people it’s as bad or worse than they already think it is for political gain. “Vote for me, I’ll fix it, then panic… but vote first!”.
You know what they say: what’s the definition of a recession? When your neighbor loses his job. What’s the definition of a depression? When you lose your job
This happens every 20 years or so. The details may be slightly different, but the trends remain the same. In the late 80’s the government stopped allowing landlords to take the depreciation of their rentals off their taxes and the crap hit the fan then too. In the 60’s the govnt made changes that allowed the interest rate on home loans to hit 18%+. Before that it was every 30 years for the trends. Im waiting to see if the internet will increase the speed of the trends as well. Trends cause diversity, diversity causes money making opportunities, if you can learn to see them coming! Good Luck to all my insurance peers!
Initially I beleive that the economic downturn was a created issue, with too many people listening to the gloom and doom reports. Then the fed’s got involved and decided that it was best to start lowering interest rates to fix things.
Well it has fixed it already. We now have the dollar is at an all-time low, more money is being printed lowering the value still more, we are giving money away and not cutting spending else where and it looks like we are headed towards democratic control in Washington which will only increase the number of people and dependancy on social programs.
All of this has turned this from a illusion into reality.
Well said. The economy is very cyclical; ride this portion out and everything will be fine in a few years. No instant gratification when dealing with something like this.
Cycles are a fixture of all economic theory. Why is it that all industries have their good and bad cycles but for some reason it is the end of the world when the economy as a whole turns from the top of a cycle to its correction? If the fed would stop propping up the money system for a purely political play to “keep the economy moving forward”, we would have more a true capitalist economy.
A correction is needed. Too much easy money given to people who can be talked into doing something that doesn’t make sense ends up with a mess for someone to clean up. I have told my teenagers that “creative financing” is always a trap to the consumer. Add to that a government that spends like a drunken sailor and it will cost us all.
I have been wondering recently if this is the “sky is falling” syndrome. A lot of these “crisis” sitiuations are as bad as we make them by overreacting to day to day changes. Very few people look long term on anything any more. I certainly am not an economist, but a lot of this seems like Chicken Little to me.
Well said.
Most of these “recessions” are made worse by people who struggle to balance a checkbook and clearly have no understanding of something as complicated as macro-economics. They hear some talking head chicken little cluck about how bad it is, try to understand, can’t, and just absorb that it’s that bad.
To make matters worse are when politicians tell people it’s as bad or worse than they already think it is for political gain. “Vote for me, I’ll fix it, then panic… but vote first!”.
Chicken Little leading the lambs to slaughter.
We need to change this. Whatever that means.
Sounds like the goop that my husband spits out on a daily basis after watching the news…..
Doesn’t it bother anyone that the only “fix” from the Fed has been more debt for the US???
Money for nothing?
The sky is falling, if you think the collapse of a country is a bad thing. It will take another century though.
Here is the Bay Area, the recession doesn’t exist.
You know what they say: what’s the definition of a recession? When your neighbor loses his job. What’s the definition of a depression? When you lose your job
And it will be a recovery when GWB loses his job!
This happens every 20 years or so. The details may be slightly different, but the trends remain the same. In the late 80’s the government stopped allowing landlords to take the depreciation of their rentals off their taxes and the crap hit the fan then too. In the 60’s the govnt made changes that allowed the interest rate on home loans to hit 18%+. Before that it was every 30 years for the trends. Im waiting to see if the internet will increase the speed of the trends as well. Trends cause diversity, diversity causes money making opportunities, if you can learn to see them coming! Good Luck to all my insurance peers!
Initially I beleive that the economic downturn was a created issue, with too many people listening to the gloom and doom reports. Then the fed’s got involved and decided that it was best to start lowering interest rates to fix things.
Well it has fixed it already. We now have the dollar is at an all-time low, more money is being printed lowering the value still more, we are giving money away and not cutting spending else where and it looks like we are headed towards democratic control in Washington which will only increase the number of people and dependancy on social programs.
All of this has turned this from a illusion into reality.
Well said. The economy is very cyclical; ride this portion out and everything will be fine in a few years. No instant gratification when dealing with something like this.
Cycles are a fixture of all economic theory. Why is it that all industries have their good and bad cycles but for some reason it is the end of the world when the economy as a whole turns from the top of a cycle to its correction? If the fed would stop propping up the money system for a purely political play to “keep the economy moving forward”, we would have more a true capitalist economy.
A correction is needed. Too much easy money given to people who can be talked into doing something that doesn’t make sense ends up with a mess for someone to clean up. I have told my teenagers that “creative financing” is always a trap to the consumer. Add to that a government that spends like a drunken sailor and it will cost us all.