Thursday, September 29, 2011

Is the Great Depression Coming Again?

About 95% of the financial crisis faced by anyone in this world can be attributed to poor money management. It seems that the U.S. underwent a financial health for years, some may even say, for decades. A financial crisis can occur in most of the drawbacks, and we were surprised by the problems this can bring. The U.S. national debt was insatiable, at least since the 1980s. Since the 1980 U.S. was deeply in debt - an increase of more than 14 times since 1980. Some bankers in some of the world's largest banks have had a basic idea - the idea that money can be created on paper – they pushed this idea too far.

The global financial crisis had a negative effect on everyone - whether private or corporate. A key challenge for everyone in the financial crisis was the housing development. Those with variable rate mortgages found that owe more than what they paid for their homes, and many were unable to come up with the additional tens of thousands of dollars each year. Nobody wants to be a part of the financial crisis of depression. The bad news about the next Great Depression is that nothing can be done to prevent it. The financial crisis has raised the dynamics of depression for months now, and is about to embark on full speed ahead. So rather than deny or wishing it away, we can also accept it as it is going to happen without our permission.

There are many reports on the precise figures and even government agencies seem contradictory on the calculated figures. It is also clear that until and unless the United States drastically raise taxes, doubles the income (GDP) each year for decades, creates currency, or find another river in significant revenue - it seems that the majority of Americans’ unfunded liabilities remain unfunded. The next global financial crisis will be 3 months to 2 years in a row, and when the crisis comes, you know it's very easy to make 50% to 200% returns on your capital. With the U.S. budget deficit expected to reach 1.48 trillion dollars, a record is possible that Barack Obama must now face. The financial difficulties of the federal budget is huge, and there is much work to do before the country is back on a stable financial base.

1 comment:

  1. Extensive economic reform must really be prioritized to prevent another depression.


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