There sure are a lot of internet 'experts' calling for recession, if not the end of the world as we know it.
Certainly recessions happen from time to time, and yet from a long term perspective, they are rare events. The saying 'this time it is different' applies somewhat, because we have never had a slowdown of global proportions in the global economy. Sure the Great Depression had a global impact, but the world was not as interdependent as it is today.
It's almost as if people tried to assign to the whole U.S. real estate market a single direction, while not taking into account that each region has different economic and demographic conditions driving supply and demand. Wait minute...people have been doing that.
Anyway, I think the global economy is the same way. Yes, we are interdependent, but as long as we have sovereign nations, there will be sovereign economies with different economic goals, priorities, demographics, and demands.
Practically speaking, I do think the economy is vulnerable right now, but I would not state that we are in a recession...not yet. If you study longer term stock trends, it does not appear the bull is dead yet. It is a time to watch carefully and assess what is happening, and also prepare in the event it does happen. That does not mean to run to the hills, but it does mean exercise some caution.
Certainly recessions happen from time to time, and yet from a long term perspective, they are rare events. The saying 'this time it is different' applies somewhat, because we have never had a slowdown of global proportions in the global economy. Sure the Great Depression had a global impact, but the world was not as interdependent as it is today.
It's almost as if people tried to assign to the whole U.S. real estate market a single direction, while not taking into account that each region has different economic and demographic conditions driving supply and demand. Wait minute...people have been doing that.
Anyway, I think the global economy is the same way. Yes, we are interdependent, but as long as we have sovereign nations, there will be sovereign economies with different economic goals, priorities, demographics, and demands.
Practically speaking, I do think the economy is vulnerable right now, but I would not state that we are in a recession...not yet. If you study longer term stock trends, it does not appear the bull is dead yet. It is a time to watch carefully and assess what is happening, and also prepare in the event it does happen. That does not mean to run to the hills, but it does mean exercise some caution.
Powered by ScribeFire.
No comments:
Post a Comment