Risk of Recession Highest Since Any Point After 911

Risk of Recession Highest Since Any Point After 911

news.yahoo.com

WASHINGTON (Reuters) - Former Treasury Secretary Lawrence Summers said on Sunday the risks of a recession are greater now than at anytime since the September 11 attacks due to real estate and mortgage market troubles.

(visit the link for the full news article)

Because of all of the posts on ATS lately regarding this very "interesting" economy we have going on right now, I thought this might be pertinent. This may have something to do with the "Put Options" post currently up right now as well.

Any input on how there might be a correlation? Is this more doom and gloom, or is this just an over estimation of the volitility of the economy?

Thank god I am poor...

news.yahoo.com
(visit the link for the full news article)

Bad Credit Tops Terrorism as biggest threat to the Economy

[edit on 27-8-2007 by TruthWithin]

Given the current solidity in the "basics" of the world economy, that is increased company profits, reasonable P/E ratios on company shares, I'm not entirely sure a recession in the US or any other major economy will occur in the medium term.

Now...

After this period of time (18-24 mths plus) there MIGHT be individual circumstances in either the US or Europe (mainly) or possibly Asia (unlikely), but I believe any serious economic downturn will have its roots in geopolitical troubles, not economic troubles.

War with Iran and potentially its allies and so forth.

The US would be foolish to act against Iran, because it would only have Israel, possibly the UK. and definitely not Australia after our elections in a few months onside...

To go after Iran would only serve to isolate the US AND its economy from the rest of the world...Investors hate nothing more than political and financial instability in the countries they wish to invest in.

The US would be smart to heed this well in the coming 6 mths or so...

Peace

This is indeed interesting, because it goes to show how linked the western worlds economies are between the different countries.

In Denmark housing has been on the upwards for far too long now and the first signs of recessions is starting to show here. People can't get rid off the houses and so many people jumped on aboard the "no down payment loans" wagon back around 2000.
If the American economy crashes European exports to America will drop, industry will have less capital to invest, the intrest goes up and there sits little mr. and mrs. middleclass with their new flatscreen tv in a house they can never pay off :S

But hey... everything fluxes. It was just a matter of time wasn't it?

Existing discussion here:

www.abovetopsecret.com...

Please contribute to the existing discussion.

Thread closed.