Has recession hit the U.S.? What does it mean for the Phils?

**tidus1203** · March 17th, 2008 07:13 PM

As far as I am concerned the US IS ALREADY IN RECESSION since around November last year... And I have made a killing in the markets trading on that idea since then. And I believe this will continue until we complete all the deleveraging that the markets need to take. Meaning all those who need to go under, must go under. All homeowners who can;t pay up should be foreclosed and the banks take all the losses that is out there so we all start back at a solid base....

**uls** · March 17th, 2008 10:16 PM

Originally Posted by mang ponso

"The former boss of the Fed, Alan Greenspan, told the BBC that there was a 30-40% chance of a full-blown recession when people realise how bad the housing situation is, and that Fed studies had shown there was a very real - but delayed - wealth effect.
Others, such as Merrill Lynch, put the chances of an absolute decline in the economy, at above 50%. So there is a wide divergence of views among economists as to whether the US economy will recover in the second half of 2008. "

The above I saw on one of BBC's website business pages. For full report see
http://news.bbc.co.uk/1/hi/business/7078492.stm

Should we be worried?

Dude, Nov 2007 pa article na yan.

Things have deteriorated since then.

Things actually happen so fast, last week's news is already ancient history.

**gearhead** · March 18th, 2008 03:32 PM

Any update on the banking crisis?

**tidus1203** · March 18th, 2008 03:59 PM

Its not just a banking crisis, its more of a credit and confidence crisis. Banks, brokers, insurance and pretty much any financial institution rely heavily on readily available credit at low prices. Basically no one trusts each other anymore and even the banks themselves are not so sure if the assets they are holding are worth something... The collapse of Bear Stearns made the sentiment even worse and the Federal Reserve is in panic mode printing money double time (the media calls it pumping liquidity its all the same), taking junk securities as collateral for US Treasuries and even funding JP Morgan's fire sale buying of Bear Stearns.... Things don't look good....

**uls** · March 18th, 2008 04:48 PM

Update?

Investment bank Bear Stearns no longer exists... RIP

The Fed told all its banker friends "Don't worry, if u need money, i'll give u a blank check."

Dollar becomes toilet paper.

Gold price soars.

Coz nobody believes in paper money anymore.

Back to using gold as currency

hehe