It's not just the American economy. Yes, our economy is falling, badly. The DOW (our stock market) has dropped 800+ points this week alone. It's creating a global effect, as well, as the stock markets in Asia and Europe have also begun to drop. Many say that the American economy is heading into a deep recession, possibly even a depression. Our economy is in the worst shape it's been in since the 1930's.

Our (America's) stock market just crashed and burned again today, losing another 678 points (about 7%) on Wall Street. We have lost 2,000 points (or 19%) in just the past 9 days. It's getting bad.

^ Actually, all world economies are being affected. Asia, North America, Europe. All the stock markets are in decline. It's a global effect. Refer to the bolded part of the article below. JOE BEL BRUNO The Associated Press NEW YORK - Wall Street suffered through another traumatic session Monday, with the Dow Jones industrials plunging as much as 800 points and setting a new record for a one-day point drop as investors despaired that the credit crisis would take a heavy toll around the world. The Dow also fell below 10,000 for the first time since 2004, and all the major indexes fell more than 7 percent. The catalyst for the selling was the growing realization that the Bush administration's $700 billion rescue plan and steps taken by other governments won't work quickly to unfreeze the credit markets. Global banks, hobbled by wrong-way bets on mortgage securities, remain starved for cash as credit has dried up. [u][b]That sent stocks spiraling downward in the U.S., Europe and Asia[/b][/u], and drove investors to sink money into the relative safety of U.S. government debt. Fears about a global recession also caused oil to drop below $90 a barrel; and the benchmark index that gauges fear in the market jumped to the highest level in its 18-year history. "The fact is people are scared and the only thing they're doing is selling," said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research. "Investors are cleaning out portfolios and getting rid of everything because nothing seems to be working." The selling was so extreme that only 67 stocks rose on the NYSE , and 3,155 dropped. That's a telling sign considering the stock market is considered a leading economic indicator, with investors tending to buy and sell based on where they believe the economy will be in six to nine months. Monday's steep decline on Wall Street indicates that investors are becoming more convinced that the country is leading a prolonged economic crisis that is spreading to other nations. Over the weekend, governments across Europe rushed to prop up failing banks, while the governments of Germany, Ireland and Greece also said they would guarantee bank deposits. As the U.S. tries to repair its battered banking system, the German government and financial industry agreed on a $68 billion bailout for commercial-property lender Hypo Real Estate Holding AG. And France's BNP Paribas agreed to acquire a 75 percent stake in Fortis's Belgium bank after a government rescue failed. The Fed also took fresh steps to help ease credit markets. The central bank said Monday it will begin paying interest on commercial banks' reserves and will expand its loan program to squeezed banks. Joseph V. Battipaglia, chief investment officer at Ryan Beck & Co., said government intervention certainly might help. However, he believes investors are sensing that what's happening in the economy is a shift in the extent to which consumers and businesses take on debt, a change that will take years to play out. "This is a global deleveraging of many economies," he said. "It might appear that you're going into the abyss where the economy grinds to a halt and the financial system goes into complete disarray. But, what the market is really reading here is that this is a global phenomenon, and when you delever like this, it is a process that takes a very long period of time measured in years, not quarters." That, he said, is being reflected in major stock indexes being repriced significantly lower. In late afternoon trading, the Dow Jones industrial average fell 800 points, then recovered slightly in erratic trading to a loss of 764.38, or 7.40 percent, to 9,561.00, dropping below 10,000 for the first time since Oct. 29, 2004. The Dow surpassed its previous record for a one-day point decline , 778, which the blue chips suffered a week ago when investors feared the bailout package might not pass Congress.

Last edited by Infamous J (2008-10-09 18:54:49)

this issue is in the news right now... but i'm getting confused with this issue what's the reason behind this falling economy? and philippines and other countries are getting affected in it [spoiler]please explain:D[/spoiler]

The title should be "World Economy Concerns" anyway, to stay in topic, I would just like to state that yes, America's stock market has definitely crashed A TON. But it doesn't necessarily mean its' just American. It is becoming more of a dominoe effect. Even China's stock market has gone down, as well as other countries. It really is a BIG concern, especially for the labors, and banks. I just hope SOMEONE/SOMETHING happens, so 'we' won't have another depression. And when I think of 'depression', I usually think of the Dust Bowl, which is not something I would like to experience soon .....

[quote=jmaex3]The title should be "World Economy Concerns" anyway, to stay in topic, I would just like to state that yes, America's stock market has definitely crashed A TON. But it doesn't necessarily mean its' just American. It is becoming more of a dominoe effect. Even China's stock market has gone down, as well as other countries. It really is a BIG concern, especially for the labors, and banks. I just hope SOMEONE/SOMETHING happens, so 'we' won't have another depression. And when I think of 'depression', I usually think of the Dust Bowl, which is not something I would like to experience soon .....[/quote] yes , agree with that, I don't want even to experienced the Dust Bowl, I would be really a disaster, but I think US governments is now fixing this problems right now

[quote=Infamous J]Also...no matter what the government tries to do, it's not something that will be fixed anytime soon. Most economists say that we (global economy) WILL continue to slip into a recession and it will take 2-3 years for us to get back to where we were just 30 days ago. Life, in America especially, is changing and it's not gonna be the same for quite a while.[/quote] Jesse has a good point. Life here will really change. As sad as it sounds, I am making sure that it won't affect my happiness. I am working more now and I am trying to not be as spoiled as I used to be. It is definitely affecting EVERYONE. I just hope people are ready for it...

[spoiler][img]http://www.meikathon.net/roflmao/facepalm.jpg[/img][/spoiler] thats what i saw on the news.

^ So, I just heard the local news. Is there really a NEWER bail-out plan???

[quote=Infamous J]Unfortunately, that picture is very fitting for this crisis. [/quote] I know. very bad.