US economy.. recession or survival?
last day the house-loan data were not upto market.
its below 1991 mark
the current trend n down-size shows fall in economy.. fed will meet on 31st, might cut rate
wat yu think.. US ecomony heading towards downtrend or still some hopes alive
Everyone keeps looking to the government to correct the problems we are facing. Truth is, individuals are responsible for this recession. Right now, people are spending more than they make on almost a constant basis.
The reason the housing market is struggling so much is because too many people took out mortgages to buy houses that were outside their price limits. Thus, as their mortgages are coming due, they are running default because people couldn’t afford them in the first place.
People are believing that they have to have the latest and greatest of everything. And they are willing to pay any price to get it. People are racking up credit card bills they can’t pay off. Also, if they are late on their payments, their interest rates skyrocket, causing them to further be unable to pay.
What will keep our economy out of a recession is people realizing that managing personal finances is key to our nation’s survival.
We can’t keep spending like money grows on trees then hope the government can fix our problems. They can’t undo the damage we have done. And they shouldn’t. Do you really want the government involved in your personal finances? NO.
One other factor I might mention. Recession, just like any other economic state, is a self-fulfilling prophecy. That means, if people believe it will be true, they will end up making it happen. For instance, if people believe the economy is headed for a recession, they will stop spending their money as much, thus causing corporations and major conglomerates to lose thousands of dollars of profit, causing national GDP to decrease, thus fulfilling people’s belief
I do believe we are headed for a recession and we won’t get out of it until we teach people how to manage their personal finances. Managing finances should be a mandatory class in HIGH SCHOOL. We should be teaching our children to conserve money, not just buy everything they want.
However, I don’t believe a recession is a bad thing. I believe it is the BEST thing that could happen to our economy. Our spending and money use has been out of control. Wages are getting top-heavy. The spread between what top executives and entry-level employees are making is almost 15 times what our predecessers, such as Benjamin Franklin said it should ever be. They wanted owners to make 5 times more. Many owners and CEO’s make 20 to 50 times more than entry level employees. The only way to make this and excessive spending stop is to make living any other way not an option.
Ann Arbor Real Estate Market Trends for February 2009