Wednesday, June 11, 2008
THE AMERICAN RECESSION " MAY BECOME A WORLDWIDE DEPRESSION"
The recession in America may become, a worldwide depression if the worldwide financial markets keep falling everyday. The recession is mainly caused by the sub-prime loan failure in America and the companies who gave out these risky loans such as Countrywide and brokerage firms like Merill Lynch. The recession is also, caused by the weak dollar and the high deficits 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 inflation in America and around the world. Secondly, if the price of oil reaches $175 a barrel there is no way a large number of companies can stay in business and that will cause a huge jump in unemployment worldwide. Finally, 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 Southeast Asian Markets. Therefore, you can expect several "Black Fridays" on the stock market this year because, of the uncertainty of the American Financial 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 brings some stability back to the Financial markets. Therefore, I am asking my bloggers to make a quick comment by pressing comment, if you think that there will be a worldwide recession in the upcoming year.