George Soros: "The worst market crisis in 60 years"

The US is headed for its worst economic crisis "since the second world war". Now even George Soros is saying it.

There's going to be some major pain felt all around in the good ole US of A. The only question now is, who's gonna get stuck shouldering most of that pain: the Corporations and the Media - or We The People?

And what are the candidates' plans for dealing with this little upcoming financial problem? Is this being discussed enough?

"The US is headed for its worst economic crisis "since the second world war". " I guess that sounds a bit better than 'its worst economic crisis since the Depression.'

and for exactly the same reason.

Why don't we put all our Social Security funds into the markets? Pretty good huh?

:banghead:

Been wastd on a pretty pointless war.

This is what he means: The Fed has the ability to stimulate the economy by lowering short term interest rates. That's what the Fed did yesterday. This then becomes one of the prevailing or benchmark interest rates, like the prime rate or LIBOR (London Interbank Offer Rate).

The problem is that at the same time the Fed is lowering interest rates, the U.S. Government is massively borrowing at a prevailing or benchmark rate. As the government essentially lowers the interest rate on its own borrowing, its bonds become less attractive to investors -- especially overseas investors and central banks in Asia who have amassed hundreds of billions of dollars in cash and treasury bills. They would have less appetite for purchasing US treasury bills because their return, the interest rate, would be lower. Therefore, there would be an excess dollars, which means the value of the dollar would decline even further relative to the Euro.

Investors purchasing long term bonds would worry that dollar denominated investments, like longer term treasuries and U.S. corporate bonds, could in the long term erode in value as the dollar erodes in value. Therefore, they would demand higher long term interest rates in order to compensate themselves for the risk of a dollar decline.

Many businesses and corporations borrow for the long term (for example, the amount of time it takes to build a factory, make profits and pay off loans). Therefore high long term interest rates are a drag on growth and investment.

The short term "fix" becomes a long term drag on the economy.

brilliant people and lots of resources
We don't need oil

I think this is the shift of change
if they want to get this economy going
the Reality is they have to pay people decent wages to get it going

Corporations had their time and they made the decline in America
Greed thieves and killers

the apathy that Americans have will awaken (shift) when you get hungry you start looking for solutions

I can see the Republican party never recovering after this
its post mortem
They have brought Americans into two Depressions and Dems have had to get them out

America has gotten rich and powerful thanks to greedy corportations, and the workers took it on the chin. How many people are able to actually afford to make a living on one income nowadays? It used to be commonplace. Everything has skyrocketed in dollar amounts in the last 50 years...except wages. More people are in poverty than ever before. American jobs are being outsourced to the lowest bidder. The real estate market has tanked, and the stock market is well on its way. It could take us a long time to climb out from under this mess.

barons and informed by a media totally owned by the robber barons.

the root of the problem. supposedly, 50 years ago one (average) wage earner could support a family of four and have money left over to save. americans are working as hard as ever and yet our paychecks are not covering the bare necessities, hence the need for massive amounts of credit. when this goes on for long enough, however, people simply will not be able to repay the money, and there will be big losses. IMO, the reason are paychecks are shrinking is because the profits of workers' labors are being disproportionately accumulated by those at the top.

I've been trying to study this stuff a lot and I never came across this idea before -- that low wages made it necessary for people to seek money elsewhere -- ie credit (or what some people used it for, flipping houses).

This makes sense and it may tie in with another, similar explanation -- that the motor of America's economy, instead of being jobs and productivity, became speculating on houses.