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AviTech Posts:1 2007-03-16 22:24:33 |
World Economy Futures? |
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| Does the World Economy rest upon the success of the American Economy? In other words, at this point in time. If the U.S. Economy falters worse than 1929, would that mean the demise of the world economy as well?
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| hick k Posts:1 2007-03-16 22:54:19 |
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| Housing subprime sewage will hurt the markets, but the effects on the economy will be limited, but expect slower growth rates of 2% a year with this housing problem in America. Great Depression occured because of counter intutituive fiscal policy, and trade barriers. The present problem is too many sub prime loans give out. Someone will profit off of New Century, and other players giving out John Gotti house loans that went bad. Except the goverment to bail out the people that got the loans, but the greed of the investors will reap them. Other sectors of the economy will pick up the slack from the housing problem, but no depression just slower growth rates for a while. |
| philia Posts:1 2007-03-17 05:25:21 |
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| Since US economy is the largest economy and many emerging economies depend on it. If US economy falls it will have large impact on world economy. This will be the case until us economy is the largest economy.
Since 1929 much has changed. growth in world in economy was led by western part of the world. Now it is the eastern part. I think US economy share has fallen since 1929. So my take impact will not be as large as 1929. Again 1929 hurt Germany the most as Germans had invested a lot in US. I suspect this time it would again Japan, Korea and Taiwan along with China. |
