Who saves us from the Recession?

James | Jun 16, 2009 | Comments 7

With the concerns swelling around the health of the global economy who is going to be the leader to take us out of these dire times? Many people believe China can be the world’s savior and lead us to better economic times. Frankly, this is nearly impossible due to the basis that China’s economy is focused around exporting. In 2000, 32% of China’s GDP came from Exports, now its up to 48%. Its not logical to believe that an export based economy can take us out of the recession when global demand continues to fall. So I revert back to the United States being the only logical country to take the reign. The problem we have is how to stimulate the U.S. in a way to help the world. We are starting to see signs of progression as American consumers start to spend more and more yet still many are scared due to the huge hits there assets took in the past year. What is the main asset in American’s portfolios? There houses, some of which are down up to 30%. If the United States government can use remaining stimulus money to lead a resurgence in the Housing Market it could help speed up the whole process of the economy’s revival. I haven’t thought of a solid plan on how to stimulate the Housing Market though when I do I will make sure to post solution.

China Life Insurance (LFC)

Tags: China's Emergence • Future Monetary Policy • Recession • Who Saves Us from Recessions

http://stocksonwallstreet.net James

6% is a big sum of money, especially when you factor in the fact that will now have another 6.7 million Americans unemployed. Some families will be cutting down to just the very basic soon spending no extra income on personal family expenditures. Problem is a fully expect gas prices to go back to $4+ so I guess we will start to see larger effects on our pocketbooks.
http://voicedup.com thevoice@voicedup.com

Since December prices at the pump have climbed sharply. While prices are still far below the levels of a year ago, the current levels are high enough to start hurting, especially those who have seen their incomes drop due to the recession. It was calculated that the current prices would be consistent with energy taking up over 6% of total personal consumption expenditures, up from 4.85% back in December.
http://stocksonwallstreet.net James

Understand where your coming from, spending close to $100 to fill up a car is getting ridiculous. The only thing worse is due to the rising unemployment some people don’t even have an income so the option of filling up the car doesn’t exist.
Simon David

Oil is a big harm to every person’s pocket book. Just kills me everytime I have to pay $4 for a gallon of gas.
http://stocksonwallstreet.net James

Post here but also continue this discussion at:

http://www.randomchatter.org/stocksonwallstreet-net/939-what-going-bring-us-out-recession.html
http://stocksonwallstreet.net James

No I don’t think Oil Prices will prevent recovery as if you look at it some of America’s largest corporations are the Oil and Natural gas companies who benefit us all. Oil prices going higher is something we are just going to have to get used to in this new-age society of ours. The more important issue is the need for a resurgence in both the jobs market and the housing market. Those are the two critical factors holding us back. Once more and more Americans go back to work, consumer spending will pick up, ones housing prices come back to even people will start investing. It all goes together.
http://voicedup.com thevoice@voicedup.com

A better question is….will oil prices prevent a recovery?

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