U S Economy - Trouble Not Over

United Arab Emirates
January 14, 2008 9:21am CST
U S economy is in a worse situation. Housing and credit troubles are not over. Housing problems would take time to resolve. Actual morgatge defaults will accelerate in next few months. Economic growth is expected to be zero or little above for a long time. However better economic data is expected towards the end of 2008.
2 responses
• United States
18 Jan 08
Yes, indeed you are correct. But, there are always opportunities in any situation. Since the value of the dollar is low, investors can buy stock in overseas companies and obtain profit and dividends in currency of a higher value. Also, Bank of America is currently conducting talks with Countrywide and intends to buy it for about $ 4 billion. Countrywide itself owed alot of money to Bank of America, so when they acquire the company, the billions they loaned will now be reseized. This will take a little pressure off the debt industry, but not too much. With real estate values very low right now, homeowners and real estate investors will have to take a break. But, entrepreneurs may be a ble to obtain building space at relatively low prices. Entrepreneurs are an integral part of the economy, they help the economy expand in money value, and the jobs they create (assuming they don't fail). Hopefully, Mr. Bernanke will continue to watch fluctuations and act accordingly. They say that Greenspan helped to carry the economy by emphasizing good monetary policy. If this is true, Bernanke may be able to get the U.S. economy out of this rut. But only time will tell. Excellent topic sir!
@chunter (1759)
• Singapore
14 Jan 08
There's always ups and downs in every country's economy... The way I see, it will get better when the election starts in June