Tuesday, January 22, 2008
AMERCIAN RECESSON "MAY BECOME A WORLD-WIDE DEPRESSION"
The upcoming recession in America may become, a worldwide depression if the worldwide financial markets keep falling everyday. The recession is mainly, caused by th sub-prime loan failure in America and the companies who gave out these risky loans such as Countrywide and Brokrage firms like Merril Lynch. The recession is also caused by the by the weak dollar and the high deficts that the United States government has accrued around the world for several decades. Therefore, if you see these things happen then there will be a worldwide recession. First if the OPEC countries stop using American dollars in exchange for oil and start using Euro-Dollars for every country to pay for there oil. If this happens the dollar will drop even more and cause a huge increase in inflaion in America and around the world. Secondly, watch the bond market if the bond market collapses then there will be a lot of money taken out of the American markets and invested in the sotheast Asia. Therfore, you can expect a several "Black Fridays" on the stock market this year because, of the uncertainty of the American finanical markets. This is going to be a long hard ride for the American people for the next couple of years until the natural market forces of the economy brings some stability back to the Financial markets. Therefore, I am asking my bloggers do you think that there will be a world-wide recession in the upcoming year. There will be be some sugesstions in my next atricle on how we can stop this world-wide recession.