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Spend Our Way Out Of Recession

Posted by jeflin • 11/16/08 • Subscribe to this Discussion [RSS] • Report This Topic
Topics: bailout, business, consumers, Economy, investment, investors, recession, stocks

Recession, recession, everywhere we turn, we are reminded of this dreaded scenario. For those who are still shy to utter the word “recession,” let’s not kid ourselves anymore. The earlier we face up to the truth, the faster we are on the road to economic recovery.

I have written an article here.
jeflin.net/2008/11/13/spend-our-way-out-of-recession/

Please share your opinions on this recession.

User Comments

11/16/08

acousticguitarist

and eat your way out of an eating disorder :-)

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1. 11/16/08
  
  jeflin
  
  If you have an eating disorder, and you don't eat, you could starve to death as well.
  
  I guess so long as we don't gouge ourselves to death.
11/16/08

ophase

"Personally, I am concerned that the current economic slowdown hampered the construction and research of clean energy facilities. The financial reality is that it is no longer cost effective to substitute oil with other resources, now that the oil prices has dipped below $60."

I think that after the unhonest speculation on oil prices, most of the governments and companies around the world has started to research new energy policies bcs of their collapsing trust. That's why the oil prices has decreased.
I expect a revolutionary shift from oil to electricity in the near future.

[reply]
11/16/08

bloggernoob

i don't think it's a recession, i think it's the next great depression. in my area of expertise, real estate, it's pretty crazy. even the rental sector is wrecked cause developers are renting out unsold condo units to pay off their construction loans. there is just too much supply and not enough money.

it's only going to get worse cause 4th quarter for retail is going to be terrible.

[reply]
1. 11/16/08
  
  jeflin
  
  A lot of retailers will suffer during this holiday season. Retrenchments by solid companies are already beginning in earnest.
  
  I am not surprised that residential properties are left on the shelf with all the uncertainty in the job market and people are waiting for prices to fall further. Foreclosures are going to rise as a lot of properties are already underwater.
2. 11/16/08
  
  pointlessbanter
  
  Don't you think that real estate is getting what they deserved? Home prices in this country were so out of whack... Forget about the loans and everything else.
  
  Like So Cal. My parent's home was valued at close to a million dollars. It is in no way, shape, or form a million dollar home. In every other state in the US it is essentially a little nicer than a starter home. Maybe 150K value...
  
  But since the housing market was so out of control the value was super inflated. Aren't we getting our just desserts for this over valuation?
3. 11/16/08
  
  DaneMorgan
  
  What pointless said, but applied to a few more sectors as well.
4. 11/16/08
  
  Anok
  
  I'm with Kevin and Dane.
11/16/08

gentledove

The current British idea is to borrow to reflate the financial institutions. The old fashioned spend was to build infrastructure. jury is out on this one.

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11/16/08

SailboaterRob

It is going to get far worse in the US.

This country is bankrupt. The last estimate I saw the US owed 59.8 trillion dollars. Lets round that off to an even 60 trillion, $60,000,000,000,000.00

There are approximately 300 million people in the US. Dividing 60 trillion by 300 million equals $200,000.00 for every single person as of right now. And, we are going deeper into debt every day. Wake up folks.

People want more and more for nothing. It's all about greed.

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11/25/08

therealshari

Until our government has a really good reason for the American consumer to be debt-free, we'll continue to be at the mercy of the greedy. It's the "New American Servitude"... not polite to call it slavery.

With all the bailouts, they could have divided that amongst all Americans to pay off credit card debt, then auto loans, then mortgages. After that, revoke credit card debt for personal use. Allow no more than 2 auto loans, and one mortgage per person.

Only businesses should have credit, and that should be long-term for expansion, or short-term for business-to-business transactions. Additionally, the government must be required to pay their bills quickly, as in 15 days max.

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