Is the US Economy in REAL Danger?
Just trying to understand the real truth behind the recession. The whole story unfolded when the US was hit by sub-prime. Is the sub-prime main reason behind the so called recession? I think so.
When people and media around the globe is talking about the recession, I have a different view to the same.
1. The money which banks landed to the home buyers are now in the hands of developers/builders. The same people would start flowing the money in the economy when the fears of recession is cold watered
2. The money has not gone in the foreign hands. In fact, most of the financial institutions and mutual funds have started withdrawing money from foreign lands
3. The effect is really on the banks and stock markets. Some of the firms would go into bankruptcy but that doesn’t end the LIFE. There are many more who would pour in their excess cash at the RIGHT TIME.
4. Recession is more like a mental thought and a hype created by media. People would maintain their standard of living and I don’t see more than 10% cut in that.
Your thoughts are welcome!