Sunday, June 21, 2015

The American Economy: Another Crises on the Way?

By Sara Niles

The 2008 Recession is fading into the past as markets rebound, so is there a reason for concern?

Money is not the root of all evil, and it is not the key to happiness, but it is a necessary part of life all over the world. The need to secure resources needed for survival is what gives money its value, a fact that is most true in America. The stability or instability of a national economy gives the country power and advantage globally, or it places the country in a weakened position; therefore ‘what’s in your pocketbook’ nationally speaking, is vital to its global health in more ways than one. America is considered a global leader militarily, politically and economically, and as such, what affects the American economy affects the world economy.  

 The American economy  is currently recovering from the 2008 recession, with housing prices going up and interest rates stabilizing, so it may appear the coast is clear and there is nothing to worry about. America has suffered economic crises in the past, in fact every Ten Years or So   there is an economic upheaval  that is usually addressed in time, such as the 2008 financial crisis. There is also usually a warning that something is about to give, such as what happened in 2006 when the prices of housing began to fall at the same time mortgage defaults were on the rise- the result was the large insurance companies faced near collapse and had to be bailed out by the federal government .  The Warning was given  long before it happened, but was not heeded in time. 

The question now is there another financial crisis looming or is financial instability behind us now? In order to answer that question, a few facts are needed.

The rise of the economy since 2008 has led to an economic restructure with the gap between the superrich and super poor becoming a chasm, and the increase in jobs reflected in the jobs market a result of underemployment, or to put it simply: more people working jobs that pay less money than before. The signs of danger are embedded within the larger financial cogs, only visible to financially savvy experts in the field. 

Four American Billionaires are warning that something is about to give, there is creaking of the financial beams of the American economic structure and it is not what you may expect. Andy Redleaf who predicted the 2008 crisis, is worried again, along with   Sam ZellCarl Icahn, and  Crispin Odey  all of whom are saying similar things that amount to impending financial crisis looming.

It makes sense that a crisis coming on the heels of the 2008 unofficial ‘recession’ could be more intense and deep-rooted simply because the foundation of our economy has become weaker. Multimillionaire financial research analyst Porter Stansberry on the subject of the next big financial crisis  predicts the next financial earthquake with threaten ‘your way of life’ in a way that can’t be ignored.