“Do you think the recession is easing, or is there another downturn in sight?”
Just leave a comment stating if you think the recession is easing or if this may be just a temporary upswing. Feel free to simply leave easing or not easing in the comment area of this post, or leave a detailed comment.
Prize
Winner will receive 3 months of MarketClub and 1 month of INO TV. (+$165.00 Value)
How To Enter:
Comment on this post telling us your thoughts about the recession. Add a little bit of commentary or opinion if you would like to... just keep it clean and remember that there is only one entry per person.
—
Rules
1. This contest is open until 11:59 PM (Eastern) on August 31st, 2009.
2. No wrong answers, any participation counts as an entry.
3. One entry per email address.
4. Winner will be picked by random integer software.
5. Winner will be contacted on Tuesday, September 1st, 2009 via email.
–
Good luck!
Hello,
I see this as a temporary lift (induced by govt. spending and inventories rebuilding). There are big problems ahead: a decline in commercial real estate has finally started and it's strong, credit card losses are mounting, unemployment is high and moving up and personal defaults as well as foreclosures will continue.
A peak in credit is in and a change in attitudes towards debt has finally arrived; and the FED can't do much about it (they can print money, but they can't force people to borrow and banks to lend).
In a larger picture, this is a secular bear market which might last another 5-10 years; boomers are retiring and they are to the gilts in debts; they are scared to death the pension won't suffice in the coming years and they save like crazy: this will imply lower demand for everything and lower corporate profits. A picture like Nikkei from the 90s to date is highly probable for the S&P 500, and this is an optimistic scenario.
The deflation continues no matter what the FED does (the 50$ trillion debt bubble is too big even for the US government to substitute with public spending); this was the biggest credit bubble in history; the bust will be the biggest.
By the end of this story, we'll go in and out of recession many times (WWW).
To answer blog's contest's question, yes, we go out of recession as per NBER's review; but another one is around the corner and the odds of sleeping back are quite high.
I am new in this and can only judge on what I hear and read.
I just started in june 2009 with investing in stocks to make sure to you how new I am.
As far as I can tell I suspect a new comedown will arrive within, I think, 3 to 6 months. Probably starting in Asia, but mayby in Europe first. The US, I think, will have a little easing, but then also will comedown again.
The world easing will probably start around 2011-2012 or in the worst scenario around 2015-2016, depands on the actions all the national banks will take to get the easing get started. And, sadly, that depends on the decissions the goverments of the US, Europe countries and Asia countries will make. Hopefully together, but history made clear that that could a problem.
To be clear, I have to admit most national banks are allready busy to make solutions for the comedown we are in now. Still I do believe there will be a new comedown in the nearby future as I stated in the beginning of my comment.