One year after the near collapse of the global financial system, this much is clear: The financial world as we knew it is over, and something new is rising from its ashes. Historians will look to September 2008 as a watershed for the U.S. economy.
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One year later, the easy-money system that financed the boom era from the 1980s until a year ago is smashed. Once-ravenous U.S. consumers are saving money and paying down debt. Banks are building reserves and hoarding cash. And governments are fashioning a new global financial order.Congress and the Obama administration have lost faith in self-regulated markets. Together, they’re writing the most sweeping new regulations over finance since the Great Depression. And in this ever-more-connected global economy, Washington is working with its partners through the G-20 group of nations to develop worldwide rules to govern finance.
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For much of the past two decades, strong U.S. growth has come largely through expanding credit. The global economy fed off this trend.
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If U.S. consumers no longer drive the global economy, then consumers in big emerging economies such as China and Brazil will have to take up some of the slack. Trade among nations will take on greater importance.
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“The basis of revival of the system along the line of what previously existed doesn’t exist. The foundation that was supposed to be there for the revival (of the economy) . . . got washed away,” Galbraith said.
Funny how they blame Obama for literally everything and yet these people seem to have a blank memory of the eight years of complete stupidity done by the Bush Jr. Administration.
Ahhh the good old days when our biggest national security issue was presidential blow jobs in the Oval office.
We No Longer Have A Consumer Economy — Will It Ever Come Back?
a better title might be:
We No Longer Have A Middle Class – Will it Ever Come Back?
ALL economies are consumerist.
Its HOW FAR you wish to take it,
Its how far you wish to ABUSE IT..
Look at Detroit.
When the auto industry started it was a great place and the property values DECENT..
They made money and COSTS went up, BECAUSE THEY HAD MORE. THAT isnt FAIR. They could DO it cheaper, BUT THINGS HAPPENED, and prices went up. FOR no reason.
if THE gov. MAKES MORE MONEY, they think they can AFFORD to spend more. the SAME with companies. They STOP doing it the OLD way, and decide to spend money ANOTHER way that costs more.
ONCE it costs MORE, they raise prices to COVER, and we end up spending MORE..
Its a BAD trick, of those that WANT alittle more, get it from the consumer, SPEND more, insted of solving the PROBLEM, and then raising prices again.
ITS ALSO stupid to leave your MAIN office in a city charging you TONS of money, when you could MOVE and BUILD a new building in NEBRASKA for 1/2 as much. And keep costs down for YOUR EMPLOYEES, YOURSELF, and the customer.
AND guess what happens..THE other business will move with you. THEY will follow you. Including movies, theater, and so forth…AS you TOOK your money OUT and put it WHERE it can help.
Its the OLD way, when the STORES went to the customer, and were SPREAD OUT..insted of AT THE MALL 20+ miles away.
The statements like “near collapse of the world’s financial systems” is so misleading. Had they collapsed, the world wouldn’t have ended, just AIG’s world, and some others. Instead, the oldest tricks in the book were played, just as the election came near, and the rich played the game as they know it well, scare everyone with doomsday scenarios, they play cards, and win. And what’s the “the world we knew is over” crap? Helloo?
#40,
This is like a 6 year old being set back, spanked for something he did…and is BAWLING for no reason..
They have been PUSHING the market HARD since 2000, and the RUBBER BAND had to break.
If prices would DROP(many have) the goods would sell, and the whole thing would recover quickly.
LOWER those TOP wage earners..
#37 pedro,
And the Republicans hasn’t haired you as the Latino version of Clarence Thomas?