Bhakta

We're in a Recession - and On the Way to $60 Oil

I agree the USA is in recession. I will not be surprised to see it become depression. The cause is not high oil prices. The cause is the indebtedness of the country, the communities, the states, and the individuals. The entire world has not over-spent like the US Govt and US Citizens. Formerly, when Asian governments were over expanding, and over-spending they'd get slapped by the IMF, their currencies were attacked and their economies would collapse as in 1997. It is high time the US GOVT lived within its means, entiltlement programs that cannot pay their own way be cut, and the common people learn to live within their means too, not by plastic cards! I am carrying about $500,000 in credit offered by bank credit cards and if I were stupid enough to use them, there is no way the banks would ever get paid! The sub-prime disaster is only the first step, and many will follow as people will not pay their credit cards, car loans, lines of credit etc. However, the US is only a small percent of the world population, and the big population nations of India and China are still booming, and I do not foresee them collapsing along with the USA. Some export industries will suffer, but these countries have such huge markets internally, that the USA is not going to cause them to collapse too.