Recession fears squeeze tech budgets

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Dead on...

A US recession, even a fairly protracted one, isnt going to "crash the world markets"

Long term, the world isnt ready to survive without US consumer spending, but the conditions are nowhere near dire enough to predict that consumer spending is going away.

So many times the analysis and reaction to these normal cyclic trends mirror the overreaction and emotion that leads to them to begin with.

The rate of US consumer spending was not sustainable. House values were growing too quickly. The world actually needs a timeout. It is going to be the jobs of the economists and central banks to carefully chart the course through this period. And contrary to what the "eminently qualified" web masses believe (you know, the basement dwelling Einsteins), these guys are not "all idiots and morons". Oddly enough, PhD Nobel prize winners in economics sometimes have some clue about the market.

Out of the other side of this will come more regulation on the markets, which will then find the next scam in an unregulated area. Even with the MASSIVE subprime fallout, net growth was positive and these guys made a ton of money. Even if they end up given a huge chunk of it back in write downs, they will still come out ahead of not having taken the risk. Boom and bust and boom again is part of the normal cycle of economics.

The key for an individual (or a business really) is to learn how to insulate ones self (hint - dont have 5 figure high interest debt as a start!) so you are positioned to not only weather the storm, but even thrive in it. Every recession creates a ton of new millionaires. This time around, since most Americans these days seem to prefer to pine for a savior and complain loudly as they look for the next lawsuit, most of those millionaires will probably be overseas.

I have a bunch of middle class working friends in the UK already looking to team up and take advantage of the weak dollar and real estate slump by investing in NY real estate. Long term they will have made a GREAT investment. That is what the global economy is all about. The days of being able to sort of just drift ignorantly and blissfully through a sheltered life are long over. Unfortunately, too many Americans wear blissful ignorance like a badge of honor.

Posted by: mlambert890@...   Posted on: 01/30/08 You are currently: a Guest | Members login | Terms of Use

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