HappySqurriel on 10 July 2009
| Avinash_Tyagi said: I am fully aware of the stress tests, but I have yet to see any evidence that the large banks are suffering any greater with unemployment nearing 10%. Yes it could be that when unemployment hits a higher level we could see greater fallout, but for the moment the evidence supports that the larger banks are stabilized. Did I say there was no debt NJ5, no, I just said that consumers aren't feeling it as badly as your OP source believes it to be, sure they have pulled back, but if it was really that bad, we'd have seen much greater pullbacks on everything but the bare essentials, instead we see people being smarter shoppers. The reason I believe that the economy will be in recovery by next year is the economic indicators, seem to indicate that while we are in a recession still, we are nearing the bottom. |
In what way do the economic indicators demonstrate that we are near the bottom?
When you're dealing with a very bad recession or a depression the economy seems to stabilize for weeks or months (and in this period there can be strong rallies in the markets) until something happens; at which point a new wave of economic trouble begins, market sentiment changes, and everyone realizes that the economy will not be rosie in a couple of months.
The only way you can tell the difference between the bottoming of the economy and a plateau before a fall is by looking at whether they underlying problems have been resolved ... The whole point made by the OP in this thread was that the underlying issues have been ignored.
