Thread: Leading economist fears decade of weakness in US

From The Times
January 12, 2009

Leading economist fears decade of weakness in US



The collapse of the American property market helped to start the downturn
Suzy Jagger in New York

One of the world's leading economists has given warning that the United States is facing a decade of financial misery, with the number of unemployed Americans set to continue to rise for years.

Robert Shiller, Professor of Economics at Yale University, who predicted the end of the internet bubble seven years ago, said: “We could have many years of a very weak economy. Big recessions are followed by years of weakness and typically unemployment keeps rising.

“To say that this will last years is not a dramatic statement. What is happening now is much worse than 1990. We could be facing a decade of real weakness.

“This is no ordinary recession. There are signs that people see this as a different story. People are talking about a depression, something that we haven't seen previously.â€

You are worth only what people are willing to pay. Have a society of weavers and it becomes worthless when you need farmers. Have a society of farmers and it becomes less valuable when you need Dr's. Have a society of brain surgeons and it means nothing when you need brick layers. Can't have a society based on consumers when they have no means to make money. All are either worthless or priceless.....depending on what you need to survive.

crazybird, Your response to this article was profound!

Yes it was profound! How can we go on spending and buying stuff when all our jobs are sent away, all our production is moved elsewhere, and our credit is cut off (and why shouldn't it be, if we cannot produce and earn?). Yet the whole world was counting on us to go on buying, buying, buying (even as they criticised us for it). It's not just us that's going down.

Originally Posted by crazybird

You are worth only what people are willing to pay. Have a society of weavers and it becomes worthless when you need farmers. Have a society of farmers and it becomes less valuable when you need Dr's. Have a society of brain surgeons and it means nothing when you need brick layers. Can't have a society based on consumers when they have no means to make money. All are either worthless or priceless.....depending on what you need to survive.

Well said and SO TRUE!!!!!

Originally Posted by April

Originally Posted by crazybird

You are worth only what people are willing to pay. Have a society of weavers and it becomes worthless when you need farmers. Have a society of farmers and it becomes less valuable when you need Dr's. Have a society of brain surgeons and it means nothing when you need brick layers. Can't have a society based on consumers when they have no means to make money. All are either worthless or priceless.....depending on what you need to survive.

Well said and SO TRUE!!!!!

I must concur!

crazybird, you nailed it! And you brought up an important point which means that when all your doctors are now laying bricks just to feed themselves, what happens? Just import doctors from the four corners of the world to replace our doctors now laying bricks because their hospitals have closed due to non-payment by the uninsured illegals.