Japan had a huge foreign currency reserve when it plunged into recession in 1990. It kept throwing the reserves at the economy in the hope to revive it and yet did not succeed.
US on the other hand has a huge credit line with the rest of the world. It does not have much reserves to talk about but it can borrow from the entire world to revive its economy till? Till the world no longer believes its worth losing their hard earned money on someone who longer has the same credit worthiness as it once had and a bigger debt than it can service.
Give US another 4 years, by the time Obama completes his 4 years US will be in a worse mess than its today.
5 comments:
I sure hope not....everyone is pinning their hopes on him, but not everything is in his control.
I hope they come out of this ASAP. In the moment of crisis one thing though is very clear. US is still the leader and despite all the criticism, the world looks upon US to lead the way.
How is middle east?
It's still shaky....the government has been investing in the real estate sector and banks, since they own a substantial share in them anyways. A lot of real estate projects are delayed since their entire financing was from debt. Qatar and Bahrain are still doing well and are much less affected.
It will take time. How about Dubai? My cousin has since moved on to Europe, but he is now stuck with a real estate in Dubai he is trying to sell but there seem to be no buyers.
Ha ha tell me about it...we're in the same situation. Property that is fully constructed has started moving lately, so things are improving slowly, slowly!
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