EETimes.com – Meltdown unlikely, says Stanford economist — In case you were looking for good news.
I’ll be here all week! A general economic slowdown is the most likely result of the current woes on Wall Street, according to a leading economist.
The electronics industry should fare better than most in such a scenario, said A. Michael Spence, a 2001 Nobel laureate in economics. However, he cautioned a small risk still remains that the current crisis could lead to a broader meltdown.
“Bottom line is that no one will be untouched, [and] electronics should experience a slowdown but perhaps less so than the financial sector and perhaps the overall economy,” wrote Spence, former Dean of Stanford’s Graduate School of Business in an email exchange. “The IPO market could be difficult for an extended period and having financing and conserving cash by keeping cash burn down would be advisable,” he said.
I’m not worried. I may have to work for 2-3 years more than I expected – that’s life.
On the plus side, I found that YouTube has Mr Bumpy Goes Bump in the Night episodes. So on balance, the world is still sunny.
Its just another opinion. Apparently even the experts can’t tell whether there will be a freeze, a recession, or a slowdown.
Why do folks who refuse an increase in the minimum wage because of the free market, or prevent the offshoring of jobs because of the free market ((two things that directly affect “jobs”)) but fight so hard for a blank check?
They act like welfare bitches needing a fix.
This is looking more and more like global warming.
I think Congress needs to act immediately and support the President. Think of the catastrophe that would have occurred if we hadn’t invaded Iraq when our intelligence people told us that … oh wait…
About time that Wall Street and the banking industry feels the wrath of their greedy, bad decisions.
Let the major banks fail. Plenty of opportunity for smaller banks and new financial institutions to rise and take over providing credit, under guidelines where they…loan to people who can pay back. Lots of capital available to finance these new banks.
Time to make lemonade from these lemons.
#4 jim h
LOL
Good point.
#2 bobbo
It’s not that the minimum wage needs to rise but that taxes should be lowered. Works out the same except now businesses can hire more people and government will have more to waste.
http://www.youtube.com/watch?v=IU6PamCQ6zw
When you start generating profits from virtual financing algorithms, the result is that a certain point the system implodes. The formula of work is: work = weight x displacement, meaning that in order to generate revenue, profit, capital something has actually to be produced. Wall Str. had a wonderful videogame installed in their computers and greater the greed, the higher the score. It amazes me how all those people that made billions from these virtual finance schemes are still at free as they “robbed” from everyone and have inflicted the global economy severe damage. Politicians have closed both eyes while the game was going on, too many goodies to be pocketed to stop it when they could have done so, although warnings had come from many scientists that are part of the philosophical movement for a sustainable life in this world. Last but not the east, the only intelligent and nearest to the truth statement that has been made on the current financial meltdown, was made by Premier Wen Jiabao of China, that during an interview to CNN aired 2 days ago, clearly mentioned the words. “virtual economy”. A good title for a videogame.
“Meltdown likely.” – There, we’ve covered 100% of the possibilities.
Hey. But maybe if there is a meltdown, Wall Street will melt through the Earth’s crust, pass through the core and end up in China… since apparently they own it anyways.
Where’s Michael Douglas when you need him.
The empire of paper is drawing to a close. Woe to those that give paper in place of sweat and blood, and collect the debt of their fellow man! They will reap what they have sown.
Vote McBush/Evita ’08
Keep the String of Wins Coming in the USA!
Just look at our palmares:
Successful defense against 9/11
Successful capture of Bin Laden
Successful defense against Katrina
Successful invasion of Iraq forever
Successful support for nukes in both mortal enemies: Pakistan and India
Successful destruction of Non Proliferation Treaty by enabling nukes in non-NPT signatories India and Pakistan
Successful growth and stability of banking infrastructure
Successful defense of small government starting with $5T national debt which increased to $13T in just 8 years
Successful defense of core American values of citizen liberty and freedom from torture and freedom from warrantless wiretapping and freedom from habeas corpus
Successful stability of dollar to record lows
Successful stability of oil prices and food prices
KEEP UP THE GOOD WORK MCBUSH/EVITA 08 W00T!
WE WERE FOR THE REPUBLICAN PARTY BEFORE WE WERE AGAINST IT!
What difference does it make if the sky is falling? It’s made of air!
The sky is not falling. We are falling. And there is no bottom in sight.
Ironically, the tech sector took a hit today – Google -9%, Apple -17%, Cisco -8%, RIM -9%, Qualcomm -12%. Tough day for all.
That does it. I’m cracking open my own head and feasting on the goo within.
One guy says, things will be OK. Another guy says, It’s the end of the world as we know it.
Time will tell.
In my old age, I’ve found that going with the end of the world guy is always a mistake.
#7–contempt==I don’t think thats right, and since it is “math” we ought to be able to come to agreement?
People on minimum wage don’t pay income tax which is what “lower taxes” usually means. So lowering the (income) tax won’t give poor people more money. Only more money will give people more money.
The business argument is usually that if you raise minimum wages then fewer employees can be employed, but that has never happened before. Silly some still want to argue that.
#18 bobbo:
I know it’s not technically “income tax,” but the one tax that the poor do pay, without exception, is Social Security. That tax sucks 15% of potential wages from everyone.
A two-income family making $24k/yr would have $3600 more every year if they didn’t have to pay the Social Security tax.
$3600 equals…
* almost a year’s tuition at many state universities
* a few months of groceries
* 1000 gallons of gas
* a decent used car
* a low-end family, or high-end individual private health insurance plan from Aetna for one year (in AZ)
* almost 4 months of rent for a family-sized apartment
Now *that* would be a great tax cut for everyone (especially the poor.)