Login/Sign Up




Are we heading towards a global recession?
Economics


World shares fall on credit fears
Stock indexes have fallen sharply again on Friday, a day after markets in the US and Europe suffered heavy losses amid fears of a global credit crunch....
vancam
Aug 10, 2007
9 votes
3 debaters
5


+ Add Argument

4
Yes


mrpayne88
Aug 10, 2007
5 convinced
Rebuttal
(1)Share prices across the world have continued to fall, with market indicators this week reaching record lows in the US, Europe and Japan. Many analysts believe that the US economy is heading for a recession. President Bush went public this week, urging investors not to panic. Political uncertainties in Japan are hitting shares there and many other financial epicentres.

(2)A stream of bad news has been pouring out of the world's corporate headquarters this week. Many companies are reporting their worst results since the recession of the early 1990s. And in some industries, firms have started a round of massive job cuts. These cuts and the continued fall in stocks are slowly destroying consumer confidence and will ultimately lead to recession.

(3) Sky-rocketing oil prices (I think that’s all that needs to be said)


 
jonjax71
Aug 11, 2007
0 convinced
Rebuttal
Recession? that's a dolled up term for depression. How many persons do you encounter that are recessed? Now ask yourself how many persons you encounter that are depressed? The runaway capitalistic-industrialized world that has been created by multi-national corporations with the aid of government and other powerful institutions like the vatican have set conditions around the world for a major collaspe in the next decade. There will be an even greater gap between the have and the have nots. The wealthy will get richer and live off of the toil and efforts of the proleterians receiving a few crumbs off the table..........

We need to go back to the 1960s and create a world wide revolution toppling those in power and begin a new society.

Jon Jax

 
+ Add Argument

5
No


Brett Stubbs
Aug 10, 2007
0 convinced
Rebuttal
Rebuttal to: mrpayne88 Show

We're fine...for now.

1.) The stock market went crazy last week, but bounced right back up. Keep in mind the dow is over 13,200! A year ago we hit 11,000, and that was a record, and three years ago we were at 9,500!! So the market is doing fine right now. The only thing taking a BIG hit is real estate, and related investments. Down 6% for existing homes and down 19% for new homes. If there will be any future problems (and there will be, it's been going too good for too long) it will be because of the record number of people having to declare bankrupcy. Interest rates are up and the Fed has no plans to drop them for now. But does it mean we're headed for global catastrophe? No.

Interest rates have historical been much higher than they are now, gas prices are expensive; but still cheaper compared to the late 70's to 1980 (per barrel), and that's not adjusting for inflation! More money is in the hands of more people than ever before.

Countries like China are emerging as consumer economies, acttracting amercian companies not to just make factories in China, but to sell products in china. An emerging economic superpower.

2.) A stream of good news has also been coming out. You might be new to economics but at the endof quarters, public companies report their books. Some lose compared to expectations, and some are better than their expectations...but it is all based on expectations made by their boards. So as many companies have bad results, other companies have reported their highest. Baidu.com comes to mind. Tripled expectations, stock went up $40 in a day. Just because companies report low earnings doesn't mean that the economy is failing, just their businesses. In this fast paced, high tech economy you will see staple names drop out and nobodies rise to the top...it's the name of the game. How long has google been traded, since 2005? And look at their cost per share. It is rediculous.

3.) Oil prices are actually falling. They have dropped SIGNIFICANTLY over the last week. Now just because that has not been reflected at the pump...very slowly...has everything to do with this: Oil prices rise like a rocket, and drop like a feather.

 


Use these tags to find similiar debates

Bailout business capitalism communism crisis Economics economy EU frankie free market jobs money Mortgages Obama oil Politics Poverty recession salary socialism States Stimulus uk United US vancam Wealth workers