Recession time

2001400ex said:

greenblood said:

2001400ex said:

greenblood said:

2001400ex said:

PurpleJ said:

He could be right, but the people quoted in that article would never admit it. Same type of people that kept propping up investor confidence right until the bitter end the last time around. Fuck you are dense.

You don't even understand basic economics either. The comment from me isn't about whether we are going into a recession (I think we are going into one in the next year or two, but not for the reasons Trump stated).

Trump also doesn't get that 70% of the economy is driven by consumer spending, which underneath that is consumer confidence.

Let me ask you something J. Serious question. When the president says the stock market is overinflated, we have 20% unemployment, and we are headed towards a massive recession, what happens to consumer confidence?

I would argue that more than 70% of the economy is driven by consumer spending.

This is the one area that boggles my mind. Are we supposed to save our money or spend it? It's funny that when people save their money it hurts our economy, but isn't consumer spending in itself a giant bubble? When we eventually have a crash isn't it good for people to have reserves to live off of?

I've never understood why we get it from both sides. Is the real goal to have 85% of Americans spending every paycheck and for the lucky 15% to save and be better off when the REAL crash hits?

This is why I believe we need to have a stronger footnote in exports. When you need people to spend 90% of their disposable income to make the economy work, wouldn't you think there is something inherently wrong with the system?

Yeah that's exactly why we go from boom to bust. Typically 5-7 years of boom and 1 year of recession. The recessions kind of cleanse the economy.

Savings is actually one of the contributors of the slow recoveries we've had. People on average haven't been as willing to spend beyond their means.

That should be a good thing.

Our economy shouldn't be reliant on people spending beyond their means. Doesn't that exasperate economic crises even further?

It's messed up that we have an economy that's built on the mindset that an individual/family should save money while at the same time hoping other people/families don't.

Agreed. Our economy has always been based on consumer spending (except for during the wars, when government spending and borrowing fueled the economy).

Our economy is based on grow, grow, grow. When we appear to stop growing, everyone freaks out and stops spending money, which makes the recession worse.