what is a global recession?

Are we entering America's first globalization recession?
If so what does that mean?

Just something i have been watching....
If we are not allowed to talk about this feel free to delete

Ah, you weren't around in the 1970's for that recession? Lots of fun.

People spending their money causes businesses to florish and grow. If people don't spend because they get scared/don't have the money, business doesn't florish and jobs go away. Because of gas prices going up and the house fiasco thing, people are getting scared and not spending as much money. So, banks don't lend as much money which means businesses can't borrow to expand or buy new stuff, etc. and they lay off people and/or don't hire new people, etc. and it all spirals downward.

Now that everything is computerized and worldwide, what happens in one major country can influence what happens in another. At the moment, the dollar is worth less in other countries (for example, 1 pound in England is worth $2+ so if English people come to visit us in the U.S., they get things for "half" what they are use to paying and if we go there we pay twice as much. In 2005 my husband and I went to Switzerland, for example, and dinner at regular little restaurants was still over $100 every night and renting a room at the Best Western was $250-$300 a night). So, if we get "saved" it will be because foreigners are buying the U.S. houses we can't afford, etc. But, now people have money in stock exchanges all over the world, investments, and if important ones do badly, other ones will be influenced. Most of my retirement money is in American investments but I have a European one too and, people in Europe and Asia have money in our stock market. Our stock market isn't doing real well at the moment because our economy is starting to go south so people in Europe and Asia, say, might be selling their American stocks which, again, doesn't help the economy and if the American stock market isn't doing well, that "trust" that we Americans are rich and know what we're doing :-) gets shaky and people start heading for the hills, like the dam has broken.

It will be a recession rather than an all-out depression like the 1930s because money and investing is different than it was back then and because it is all international so there's more "support" from the whole world whereas before countries were on their own. It use to be that the world depended on Gold and the Bank of England (Pound Sterling) http://www.bankofengland.co.uk/about/index.htm backed by the U.S. Dollar, etc. but there was too much pressure on one "country" and all that had to be let go so the economy itself could decide what was happening instead of being so controlled by governments. All the major governments signed a pact to quit trying to control things for their own purposes as that was causing more chaos with the other National banks trying to compensate, retaliate, etc.

So, to help stop recession. Go shopping, now! Spend money!

when it happens to someone else its a recession , when it happens to you its a depression

In a nutshell, as the USA appears to be struggling to stay out of recession, the fear that we will have one spans about the globe. This is because the USA imports so much product from so many countries. If we go into a recession, that means we won't be buying/importing all that product from other countries, and they will also feel the effects.

Since there isn't much any one person can do to immediately change this, it's best to learn what you can do for yourself to guard against any recession having a big impact upon you.

we are in one HUGE! financial mess, and the countries that we owe so much money to know it, so they have to keep our economy proped up in order to get any return on they're investments, but there'll be an end to that too! I think it's going to get "interesting"...

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heyjoe said:
when it happens to someone else its a recession , when it happens to you its a depression

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