6 Worries That May Hurt Our Economic Recovery

Economics professor at NYU, Nouriel Roubini, who called the financial crash in 2007, has these 6 things to caution us about in our financial recuperation (from a June question on CNN):

1. Economy of China is slowing and will astonish investors to the drawback. This will create issues in Asia.

2. Developing markets will suffer as the US raises interest rates, worldwide interest for crude materials winds down and China slows.

3. Ukraine-Russia clash turns into a war and includes Europe and the US; Russia slices off gas supplies to Europe and sends it into a depression...

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Deleveraging and Deflation: Something Scary This Way Comes

I as of late finished reading Gary Shilling's book, The Age of Deleveraging, and Harry Dent's, The Demographic Cliff. Both authors are respected indicators of the economic meltdown in 2008. Both of them express that we have started an era of deflation and and banks can't shroud the issue for any longer.

Deflation: Why Spending Less Can Be Bad 

Generally the issue of deleveraging can be a problem because, what is beneficial for you as an individual might be awful for us as an economy. For example, it may be good for individual families to spare each penny they can spare and pay off all of their Visa obligation to become debt free.

Yet, in the event that we all did that, utilization of cell phones, lodging, apparel, furniture, motion pictures, restaurants and autos would drastically ease off. This means less profits for organizations, who, in turn begin to fire workers. Those laborers, being unemployed, will save more and spend less, taking us into an economic downturn...

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