2008-2009 economic downturn is unprecedented; The cause and the possible result of it.
By Daniel at 16 November, 2008, 10:39 pm
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The cause of this downtrend:
1. American has been providing a excess supply for the past 30 years. People produce a lot of unnecessary products, people believe no matter what to produce, there is a customer. This is what makes retail store expanding so fast.
2. The financial system hasn’t been regulated since last crash in 1987. The lending rules are loose.
3. Europeans follow U.S lead, boost economy by increasing the debt which cause a lot of “bubbles”. Especially Americans, heavily consume with debt.
4. Banks, financial institutions, big firms speculating the future too often too good, they use future money to expand just like Enron. They race, especially the banks, competing by lending the money(see who lends faster) , which cause this suprime loan crisis.
5. House bubble, credit crisis came up together drag U.S down to the hell.
6. U.S is the biggest debtor now.
Possible result of this unprecedented global economic downturn:
Dollar’s Dominance Dipping or collapsing.
U.S losing it’s leading power in world economy. U.S financial institutions will be under supervision by outside force(because U.S needs cash injecting)
U.S may not be the most consuming nation anymore since Americans are not suppose to consume this much. China or Japan may be able to replace it.
People hate America more.
2008-2009 economic downturn is unprecedented, and so there is no way to know how steep the decline will be or for how long.
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How shameful that humanity goes backwards not forward and proves they are not better than animals by not controlling their birth rate.
Nowadays having more bodies on this planet just means one thing more work labor and more pollution, this is new age slavery.
Every business which was possible to move to asia already been moved and now they stealing the technology and everything they can.
The USA’s dumbness and greed is responsible for this whole thing and they pay for it now. China not just going to replace them but
sending them back to the dark ages.
We here in Europe don’t want to see more than Europe because we had our own wars why would we give a fly fuck about the USA collapsing.
Guess dumb americans will never understand what it’s like growing up in some eastern shithole hell country and getting out of it.
We paid the price fuckers now you do!