If this bailout works, when do you think the economy will start to look bullish, some say it will get better in early 09′, then peak around this time next year, but what do you think ?
If this bailout works, when do you think the economy will start to look bullish, some say it will get better in early 09′, then peak around this time next year, but what do you think ?
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October 9th, 2009 at 3:20 am
I think the 19 year cycle of economic downs and up has almost reached its lowest point and the up-swing will take at least 5 years to become bullish again.
October 9th, 2009 at 3:20 am
Looking bullish and being bullish are two different things.
Perhaps many investors will be happy about the bailouts. And the stock market may go up for a while.
But nobody is bailing out the little guy, who is up to his and her ears in mortgage and credit card debt. And if the little guy doesn’t have the money to spend. Then the economy is not likely to do well.
Also, all these bailouts depend on the willingness of foreigners to lend huge amounts of money. The US government is already deeply in debt. And it doesn’t have any money of its own for these bailouts.
Some day foreigners will get tired of lending so much money to USA. And that day USA may go into an economic depression. Because even now USA borrows and spends about $700 billion more than it earns every year.