Recession: Part 2

[Lucky]

The economic news following the debt deal is not good. Markets are worried about sluggish consumer spending throughout the world, as well as the fragile economies in Greece and elsewhere. So, with the government cutting spending instead of increasing it to pump the economy, and with voters through out America totally disillusioned with their leaders, is the future bright?

http://www.nytimes.com/2011/08/03/business/daily-stock-market-activity.html?hpw

And, a more detailed analysis from Slate:

http://www.slate.com/id/2300560/

[TampaYankee]

The economic news following the debt deal is not good. Markets are worried about sluggish consumer spending throughout the world, as well as the fragile economies in Greece and elsewhere. So, with the government cutting spending instead of increasing it to pump the economy, and with voters through out America totally disillusioned with their leaders, is the future bright?

http://www.nytimes.com/2011/08/03/business/daily-stock-market-activity.html?hpw

And, a more detailed analysis from Slate:

http://www.slate.com/id/2300560/

I believe some economists, lead notably by Paul Krugman, have warned us about repeating Japan's lost decade where the economy languished for years because the government refused a proactive jobs and recovery approach in favor of austerity measures. It is our turn now.

[Guest hitoallusa]

Japan's lost decade in my opinion is not due to completely failed government policy but Japan's economy itself reached its saturation point and it needed a time of reorganization. What they have done with the auto industry is amazing and you can't exactly compare Japan to the US. I might be wrong but I am free to express my opinion here, don't I . Let's admit it that the US government has spent a lot. Unfortunately, not wisely under the influence of powerful interest groups and hate to say but innocent american people too. Look at a retirement plan of federal employee. Look at their health benefits even after they retire. Politicians want votes so they gave out lavishly in good times. It's time to put stop on those entitlements.

I like Joseph Spiglitz's suggestion of incorporating our ecosystem and environment into GDP calculation. We are cruel to things that don't seem to matter to us that much. Look at how much we destroyed our environment and we proudly without any shame proclaim we have achieved growth. I am guilty too but there are many things we do wrong everyday and we justify or ignore them. Let's give up some of our luxury and extravagant life style. If you don't want to do that then pay your taxes more. Since you are polluting the environment more than a single poor person possibly can. Since our ecosystem is a source of our wealth and you are polluting it and thus reducing its productivity, there must be some kind of accountability for that right? I think it's a fair thing to do. I suggest environment taxes for the riches! Please raise your glasses if you agree..

[Lucky]

Stocks Plunge on Fears of Global Turmoil

Investors Cite Slow U.S. Recovery and Europe’s Debt Crisis

By GRAHAM BOWLEY 31 minutes ago

American indexes fell around 5 percent as new data heightened fears that the United States may be headed toward a double-dip recession and that Europe’s debt crisis could widen.

http://www.nytimes.com/2011/08/05/business/markets.html?_r=1&hp

Is the Times getting its news from this forum these days? Look at this:

News Analysis

Time to Say It: Double Dip Recession May Be Happening

By FLOYD NORRIS

It has been three decades since the United States suffered a recession that followed on the heels of the previous one. But it could be happening again.

http://www.nytimes.com/2011/08/05/business/economy/double-dip-recession-may-be-returning.html?hp

[Guest Allessio77]

I am booking my reservation to the "poor house".