Why the downturn.

Discussion in 'Markets & Economies' started by Peter, Feb 11, 2016.

  1. Peter

    Peter Well-Known Member

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  2. Jim4silver

    Jim4silver Well-Known Member

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    The problems that bought the 2008 "crisis" to the US have not been solved. The QE's just delayed whatever pain was to supposedly come in 2008, which pain was soothed allegedly by the fed's actions, QE, etc. I can't speak for other countries, but I would imagine they have their own similar issues with debt, entitlements, etc.

    If the US doesn't do any more QE's or other fixes, we should expect more falling stocks over time. We have a big problem with job availability no matter what bogus number they care to post. As if the job situation wasn't bad enough, with the massive automation wave hitting manufacturers, etc, there will be far less future jobs here for blue collar work and such. Robots don't call in sick, b!tch and complain nor do they get paid overtime- they don't get paid at all. Free workers after purchase/maintenance costs. It will be an easy decision for businesses that can benefit from such technology. But bad for workers (human).

    I don't think the financial/economic "pain" will be avoided. Maybe once it happens it will lead to getting things fixed.

    Best thing to do is buy silver and beer (tonight it's Ranger India Pale Ale- off tomorrow :) ).

    Just my opinion.

    Jim
     
  3. Peter

    Peter Well-Known Member

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  4. leo25

    leo25 Well-Known Member Silver Stacker

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    I think the bigger question for so long has been Why NO downturn.

    How such a broken system keep running for so long is mind boggling.
     
  5. Peter

    Peter Well-Known Member

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    Reserve Bank governor Glenn Stevens has played down recent financial market volatility, saying it is a change in attitude rather than economic conditions.

    Speaking to the House of Representatives Economics Committee in his semi-annual testimony, Mr Stevens said there has been no economic trigger for the recent share sell-off around the world.

    "Markets are dropping their bundle. There are some latent issues that have been there all along, actually, on which people have now chosen to focus more strongly than they were a couple of months back," he argued.

    Central amongst those issues is the health of China's economy.

    Last year China recorded its slowest annual economic growth in a quarter of a century, at 6.9 per cent.

    On that front, Mr Stevens said the recent fall in value of China's currency, the yuan, has been modest and should be a long-term positive.

    Abc news
     

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