Let it be known I know next to nothing about world economics

gabersgabers Posts: 2,787
edited January 2008 in A Moving Train
Can someone explain to me why our economy taking a nose dive has such an effect on world markets?
Post edited by Unknown User on

Comments

  • polarispolaris Posts: 3,527
    the world relies on americans to buy ... if they don't buy goods made all over the world ... those countries suffer ...
  • jlew24asujlew24asu Posts: 10,118
    gabers wrote:
    Can someone explain to me why our economy taking a nose dive has such an effect on world markets?

    one big reason is the credit meltdown. all the major banks are losing billions because of bad loans. millions of people bought borrowed money when they shouldnt have. its having a ripple effect to other sectors. housing prices are going down. new home construction has stalled. unemployment has creeped up.


    the world markets follow our lead like dominos.
  • Any bets all the lovely spending in Iraq plays a part?

    Iran ditching the greenback...

    hmm

    just maybe eh?
    Progress is not made by everyone joining some new fad,
    and reveling in it's loyalty. It's made by forming coalitions
    over specific principles, goals, and policies.

    http://i36.tinypic.com/66j31x.jpg

    (\__/)
    ( o.O)
    (")_(")
  • macgyver06macgyver06 Posts: 2,500
    Any bets all the lovely spending in Iraq plays a part?

    Iran ditching the greenback...

    hmm

    just maybe eh?


    ahh the hard lessons of war...sometimes take a little time to be re-learned... but when it comes..

    it comes hard..and its the people that suffer..


    SO IN 2008


    KEEP VOTING FOR THE LEADERS OF THE MEDIA


    and nothing will get better for you
  • jlew24asujlew24asu Posts: 10,118
    Any bets all the lovely spending in Iraq plays a part?

    Iran ditching the greenback...

    hmm

    just maybe eh?

    no this has nothing to do with the state of the american economy. besides more debt
  • jlew24asu wrote:
    no this has nothing to do with the state of the american economy. besides more debt

    I wouldn't take that to the bank...

    when a piece of paper loses popularity, it's really just a peice of paper.
    Progress is not made by everyone joining some new fad,
    and reveling in it's loyalty. It's made by forming coalitions
    over specific principles, goals, and policies.

    http://i36.tinypic.com/66j31x.jpg

    (\__/)
    ( o.O)
    (")_(")
  • jlew24asujlew24asu Posts: 10,118
    I wouldn't take that to the bank...

    when a piece of paper loses popularity, it's really just a peice of paper.

    maybe instead of posting bullshit you should just take gabers approach. its obvious you know as much about the economy as ron paul websites tell you. theres a little more to it then that
  • macgyver06macgyver06 Posts: 2,500
    the world wont let our economy tank... and this can be viewed as a problem for me and you.... and president bush better start wearing a helmet.
  • jlew24asu wrote:
    maybe instead of posting bullshit you should just take gabers approach.


    maybe you should reassess your perception?
    Progress is not made by everyone joining some new fad,
    and reveling in it's loyalty. It's made by forming coalitions
    over specific principles, goals, and policies.

    http://i36.tinypic.com/66j31x.jpg

    (\__/)
    ( o.O)
    (")_(")
  • macgyver06macgyver06 Posts: 2,500
    maybe you should reassess your perception?


    oooo you said assess
  • jlew24asu wrote:
    no this has nothing to do with the state of the american economy. besides more debt

    Is debt not a part of the economy now?

    To answer the original question, the larger American companies are multinationals now. Our growth is built into world growth. When our markets take a hit the companies are not just losing money here but worldwide.
    When Jesus said "Love your enemies" he probably didn't mean kill them...

    "Sometimes I think I'd be better off dead. No, wait, not me, you." -Deep Toughts, Jack Handy
  • jlew24asujlew24asu Posts: 10,118
    SilverSeed wrote:
    Is debt not a part of the economy now?
    government debt doesnt cause recessions. there is always revenue of some kind coming in no matter what. bad consumer debt...well yea.
    SilverSeed wrote:
    To answer the original question, the larger American companies are multinationals now. Our growth is built into world growth. When our markets take a hit the companies are not just losing money here but worldwide.

    eh, thats a small part yes.
  • jlew24asu wrote:
    government debt doesnt cause recessions. there is always revenue of some kind coming in no matter what. bad consumer debt...well yea.



    eh, thats a small part yes.

    Funding a war combined with countries moving away from dollarization and towards euroization (is that a word yet?) certainly has a large impact.

    And yes, the multinationals part was a simple answer, but not a small part they wield huge capital throughout the world.
    When Jesus said "Love your enemies" he probably didn't mean kill them...

    "Sometimes I think I'd be better off dead. No, wait, not me, you." -Deep Toughts, Jack Handy
  • jlew24asujlew24asu Posts: 10,118
    SilverSeed wrote:
    Funding a war combined with countries moving away from dollarization and towards euroization (is that a word yet?) certainly has a large impact.

    And yes, the multinationals part was a simple answer, but not a small part they wield huge capital throughout the world.

    Iran is the only country moving away from the dollar. and as we saw it had very little impact.
  • jlew24asu wrote:
    Iran is the only country moving away from the dollar. and as we saw it had very little impact.

    Iran was partly responsible for the Fed's decision to stop publishing M3 data after mid-06, imho.

    Correlates with a big uptick in "oil borse" chatter.

    Wish we still had that data to check.
    Would "LOVE" to see how much money came crawling home after that.

    I bet we are damn near vertical now ...

    ... no inflation here.
    :rolleyes:
    (at least, none that we will publish for you see)
    If I was to smile and I held out my hand
    If I opened it now would you not understand?
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