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Is The Usa Economy Slidding Into Recession?

Is the United State Of America, slipping into recession, with the tight credit crunch, increase in unemployment and cutting down on consumption. Then what will be the faith of economies tied directly to the US economies, because when the US economy sneezes[b][/b], about 80% of the global economies catches cold.

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@ Depilot.

I have followed all your comment on this thread. I want you say you're on point. I am fully in support with the points you've raised. Very Spot on

If everything shares the same views as you, then Africa will surely be a better place.

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I think the idea that the rest of the world is largely immune to the fallouts of the US slowdown is gradually being put to rest.For those who think escaping from the US will shield them,a prolonged US slowdown will hit the developing world terribly.

Which country is Nigeria's largest trading partner and source of foreign revenue? The United States .

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hi kobojunkies: may be this is the perfect time to tell you that i was born in america (definitely not a big deal) and i've spent a good part of my life in america, but still it takes more than just glamorous and fantasy life style in columbus, oh of all places to move me. i'm just not impressed by any of these beautiful stuff that got you stuck in america . it is all in our state of mind, there is nothing that is possible for me in america that is not twice feasible for me to accomplish in africa. i'm not only focusing on heavily successful people like you kobojunkies. the message is for the ones that continue to work very hard for 23 hrs out of 24 hrs available daily, all for the sake of holy bills and still think one can not make it anywhere else but america. this isn't true. africans can achieve more in africa if you're serious. with serious minded people in place as leaders, very soon africans wouldn't need to escape from africa anymore and i see many more returning back home one by one. i find it difficult to understand why africans are running out of africa, but white people from everywhere are running into africa, try to make africa thier newly discovered home and teaching us half of the things we already know. something is not right with this picture. hon dimaji bankole is the beginning and i see more to come.

again, good luck to you kobojunkies

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hon dimaji bankole is one of my favorite nigerians today. he is a great symbol of hope.

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sigh!!!!

Assuming that just cause you hear the word "RECESSION" up in the air means everyone is suffering is ignorance. For those trying to use the bible for their backup, I suggest you also cling to the portion that tells you not to make things up in your bid to claim you are right and others are wrong. If you do not live n america currently, I do not expect you to understand but maybe this would be a good time for you to actually take a trip into the country itself and you might understand why those who live in america are not all screaming and running at all. Wisdom comes in handy when all you hear spells doom but those who live it tell you it is not necessarily the case.

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In Africa we are in the process of creating our own economy. The U.S. economy is not ours, thus neither is the recession it is in, and has nothing to do with us Africans in Africa and in the diaspora. Africans were used to build the U.S. economy, but it is not ours. It is the property of the caucasians. Give it back to them and move on, let us create our own strong African economy by way of our homeland Africa.

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hi kobojunkies,

again, i'm not comparing america to nigeria. this is not my point and i do not understand why you continue to mix things up. my point is simple and clear, if you think it is not feasible to survive in america during this difficult period, why not come back home and see what you can do, you just don't know the scope of your capability in africa till you actually taste the market. recession in america could even indirectly favour many african countries. america is not what it used to be. america is beautiful, but no matter how much you try you will mostly be seen as under-dog and you will always have an invisible limitation. the younger generation all over africa are being encouraged to participate and contribute to the best of their abilities. praise god things are changing and will continue to change for better. if every african run or should i say escape like many of my brothers and sisters, it means the future of africa is in limbo. it is time to start looking at africa as a land of honey. just give it a try and apply for jobs in africa, you will not believe how many opportunities are out there. your american education can take you far in africa.

do not get carried away with your 80,000 dollars salary, 600,000 dollars 30 year mortgage, 50,000 dollars 5 year car note and 10 different credit card. this is called play station fantasy land. checkout africa and fight hard for what is yours. it bothers me to see how many white people from america and europe that continue to relocate to africa while my brothers and sisters continue to think life is good in america. praise god, i've seen it all from very successful (very rich) to very poor, life is not what you think. america is in deep hot soup, and for how long, nobody knows.

again, kobojunkies, good luck.

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@debosky

I see you're as scared of the 'R' word as George Bush. Considering what leading financial institutions (morgan stanley etc) have been saying for months about the US economy, you would have to be on a different planent to have missed it. My humble advice is to take a radio with you on your next odyssey to space.

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[[font=Lucida Sans Unicode]font=Lucida Sans Unicode]What this credit collapse has done, so tragically, is trigger one of the biggest stock declines in market history… increase borrowing costs… shrink profit margins… panic investors… and raise fear of global economic collapse.[/font][/font]

In an economy where easy money and low interest rates have been the driving force behind the wealth boom of the past five years, the repercussions are going to be quite dramatic. Not just here in the U.S., but in all four corners of the Earth.

The reality is beginnig to dawn on the US economy, and those tied to it directly.

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Well,  glad you live in the Twilight zone. By the way, if you have no idea what I mean when I say I do not need luck cause I have God, at least ask. Not go off running your mouth off like an slowpoke.

The same dude who has been claiming it is right for Nigerians to flee america to Nigeria is the same dude who goes to another thread to post this. Now tell me if you can not see what is wrong with his analysis in the one case since it seems, in his bias, he could not apply same to the other case.

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Goodluck to you and those who you advise to run away, I don't need luck. I am not quiting my job to run anywhere and I am not afraid of what is to come. I have God on my side so no matter what happens, I am fine right where God has me.

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@Kobojunkie

Sorry to break the news to you but the entire F@cking planent knows America is deep in recession.

Your proclivity is obvious to any one who reads your post. Your penchant for everything American is rivaled only by messrs davidylan, I-man and Tayo-D.

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So your fantasy that Nigeria will get better in two minutes for those who run off to Nigeria in fear of recession in america completely alludes you? Things are not jolly in America does not mean it is best to run back to Nigeria. Infact, running in fear, one should run to canada or even europe but not Nigeria cause like I said the last thing that country needs is a bunch of people who are so easily swayed by fear cause if this recession hits Nigeria, they will run and run fast too. This "assumed" exodus you claim I have not heard of. You mean America should abandon it's need to do something about the immigration problems cause all the mexicans are running back?? Where do you live?? I don't believe the whole world shares the same idea of deep hot soup as you do. I happen to have friends who live around the world who are right now looking for ways to get at the cheap stuff available to them in America and you believe the whole world is afraid of america?? I think this fear of yours is not based on actual situation but on what some idea of how things work in your world. If America does not recover in a year from a recession, Nigeria is still not the best place for anyone to go to, infact it is better for the person to move to Canada than to run to Nigeria out of fear. Please look at things with your eyes open. Your delusion that Nigeria is going to change in 2 minutes has been shown over and over to be based on nothing but fantasy. Nigeria is not looking for people to continue to mouth off over and over about how great it could be if other people do this and that. That has been one of the main problems. Everyone else wants everyone else to do it but not many actually do there part realising that it does not take the world but just a few who are already there to make things happen.

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ok, let us hope things will get better everywhere. may be you're right, but i see fantasy world in your post. just because everything seems to be jolly for you doesn't mean it is the same way for everybody else. i happen to have the opportunity to visit many cities all over the world weekly and i know what people are saying and what they are going through on a daily basis. even the mexicans are returning back to their country, indians and africans are starting to do the same. so, i have problem understanding this play station fantasy world of yours, but who knows, may be you're right. it is clear to the whole world that america is in deep hot soup and it will be smart to be very careful because we do not know what tomorrow will bring.

good luck.

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You are not a Nigeria but you are speaking boldy for Nigeria?? Ok.

 

Uuuummm,  The people in Nigeria are enough to change the country. Nigeria DOES NOT NEED the people outside of Nigeria now to run back home in fear of recession to change Nigeria. Infact, chances are those who run in fear will run again if they run into walls in Nigeria, so again, the logic that it is ok to get up and run cause of fears of a recession is still not logical. Please learn to know the difference between progress and fear. If you ship home more people who move out of fear, you will more than likely sink Nigeria and not build it.

 

I ask you to please not follow sensationalists in the way they view issues and actually do research on own to find out what is actually going on around you. Read up on recent news from iraq. Do not focus on the numbers of those who have been killed but actual lives of iraqis and how far the war has come there.

About the housing bubble that burst, get the numbers right please. While there are many loosing their houses, there are still people purchasing new properties even though those numbers are not being in the media reports. This is not the first time and will likely not be the last time. I have two friends who are already signing papers for their new place this year and I am already working on mine in september. Crime Rate in America has not really surged as you may think, yes it is high, and has remained so for decades and it has yet to be a problem to this day to the economy. Gas price?? I think when you consider that the average american can still afford a gallon of

  gas speaks volumes. Fearmongers forecasted that once the price reached 3 dollars, people would have serious problems, that has not even stopped people at all. It is people living in places like Nigeria that suffer the cost at the end of the day cause many more are not able to afford the hike than those here. I think you pay too much attention to the media and their sensationalism and not to what is actually happening on the ground.

I happen to live here in America and things seem to be going really well in my industry. New job opportunities and we are looking for more and more people in the field to handle new jobs that seem to be popping up here and there. Fearmongering is one thing the media is good at but if you really want to learn of what is really going on, look at the lives of the average americans to understand what the problem may be and what the future really may be.

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i'm a young man sir, and i'm not even a nigerian. my discussion on this issue is based on what is going on in my own country today. as you've stated "If you ask many in here who were alive 20 years ago, they will give you the same line that Nigeria had a better and clearer future back then if the leaders were serious and look at Nigeria 20 years later" don't you think that it takes 2 or 4 people to change things around for better? don't you think that when you run to another country for a better life means your country will forever remain at the same point? if many were willing to stay strong and hang in there for things to get better jjust like you've recommended regarding america and recession, nigeria would have been a better country today. what you're saying here is "it is ok to stay cool in america for things to get better, but it is not cool to contribute towards reforming nigeria.

the choice belongs to everybody, like have said before different situation for everybody. but i will rather assist in reforming my country than hanging in there in america while they finish the 2 wars and start another one.

unemployment rate, iraq war, afghanistan war, *iran war, mortgage crisis, foreclosure, gas price, heating oil price, organizations moving to china/ Vietnamese, organization outsourcing in india, crime rate, everlasting terrorist problem, constant racial discrimination, food price and more

these problems sound like nothing, but americans are known not to deal with problems like these very well.

with serious minded leaders in place and a better solution to corruption, i think nigeria has a brighter future.what is going on in liberia today was supposed to take place in 30 years. it is true that things are far from being perfect, but many liberians (talents)have returned back home and very determined to assist in reforming the country. i'm very glad and proud to tell you that so far so good. why waste your time and knowledge in another country (as invisible under-dog) when you could be doing something positive in your own father's land?

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nigeria having a brighter future doesn't mean nigeria will be better than america. that is not the case here. a man that drives an old nissan could simply have a brighter future and life than a man that drives a brand new mercedes benz. america of today is in a position where the future is not easy to forecast. they have too many major problems colliding at the same time. the out come of the 2 wars are still not predictable and it might take them another 30 years to clearly figure things out and get back on track. again, sorry for my ignorance, but i think nigeria has a better and a clearer future if the leaders are serious enough.

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We can keep chasing dreams or we can focus on the now and what is. Nigeria is not anywhere close to were america is right now and even during a recession, Nigeria will not even be close so again, running away cause of a temp slump in economy will not do those who already have a life in America any good. I mean sure illegal aliens can run back to Nigeria but that does not mean that in the next 20 years Nigeria will have move 25% closer to where america is right now and does not mean they will have a better life in Nigeria either. Fact is weathering the hardtimes is a part of growing. Quitting one's job out of fear of recession will likely be a bad and in some cases disastrous move.

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sorry in advance for my ignorance.

at this point in time, i believe that with a serious minded leaders in place, nigeria as an african country has a brighter future than america. think about it! therefore returning back to nigeria might not be a bad idea for those who left the country, seeking for a better life.

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A Recession is not in any way to be seen as something that will be permanent. Infact, the economy might recover in less than a year so running back to Nigeria cause of the recession will not make sense at all. I think instead people should learn to ride the hard times so they learn how to avoid it happening again. It should be expected but not seen as the end of the world. Infact, it does not mean the whole economy shuts down during a recession so deciding to quit one's job to run will not really be a good idea.

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who is comparing america to nigeria?

i think the idea here is that africans left their various african countries to live a better life in america, so if this dream is starting to become unclear and unattainable it is then sensible for people to return back to their homes. i will rather suffer at home than suffering away from home. as everybody's situation is different from one another, i do not think that it is fair to discourage people from returning to africa from america by posting statistic. i think people should be allowed to make their moves.

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Citigroup Posts Record Loss on $18 Billion Writedown (Update6)

Jan. 15 (Bloomberg) -- Citigroup Inc. posted the biggest loss in the bank's 196-year history as surging defaults on home loans forced it to write down the value of subprime-mortgage investments by $18 billion.

The fourth-quarter net loss of $9.83 billion, or $1.99 a share, compared with a profit of $5.1 billion, or $1.03, a year earlier, the New York-based bank said in statement. Citigroup reduced its dividend by 41 percent and is selling $14.5 billion of preferred stock to investors including the government of Singapore to shore up depleted capital. Chief Executive Officer Vikram Pandit eliminated 4,200 jobs and plans more cuts.

With this disclosure,m I think we are in trouble in USA. the mortgage industry is laying off workers unconventionally. this is mind bugling

http://www.bloomberg.com/apps/news?pid=20601087&sid=akMD0kv6P.HQ&refer=home

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In a worst case scenario-where the US enters into a sustained period of sluggish growth-the impact will be eventually felt in Africa,indeed globally.

So running back to Nigeria because of a possible recession would be foolhardy.There was a recession between the last 2 quarters of 2000 and the first 3 quarters of 2001 in the US,one between 1990 and 1991-so its no big deal.

Recessions are an inevitable part of the business cycle.They are actually necessary to get rid of waste accumulated in buoyant years.

The fundamentals in the US are still sound and the US continues to look a better long term prospect than the EU region.

If you adjust for the different population growth rates of the US and Nigeria,you will find that real GDP per capita growth in Nigeria over the past few years has been about the same as that of the US.At that rate,it would probably take us 150-200 years to get to the level the US are in today

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There was an interesting article in the Economist noting that previous studies have underestimated the scale at which domestic demand has been driving economic growth in China.China can still probably 8% annual GDP growth even if the US falls into a recession.

I saw this funny comment by a Nigerian in the Telegraph:

One good point to the coming downturn it will promote some reverse migration. It's already happened to me I sold up and have moved back to Africa. No sub prime here just good weatehr and fresh food. Enjoy the downturn UK see you in a couple of years time!

Posted by Osa on January 11, 2008 11:20 AM

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@post

simple answer- yes. USA is in debt, economy is collapsing, little by little, from all the money USA is borrowing from other countries, such as canada, for the iraq war.

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Recent economic outlooks do not favor the 'US economy sneeze = worldwide cold' theory as much as before

there might be some effects, but not as drastic as before. India, China and Brazil's growth prospects are viewed as strong enough to prevent large scale effects on the world economy, if the US situation is properly managed.

China especially is not as vulnerable as before, with only 20% of its exports ending up in the US.

Frankly I think this is a little bit of doomsday predicting, yes the economy may go into recession, but not for long. Even the last set of job data released was in my view not an accurate measure, given the extreme freezing weather on the day it was taken. Half the country was iced over then, so the data was bound to be poor. With the FRB dropping rates shortly, the recession should be short lived.

Housing prices should drop anyways, there has been far too much speculation in there, especially in 'red hot' areas like Phoenix and the like.

There is some truth to the 'consumerist' theory, more due to increased debt to GDP ratios - US savings have dropped, and from being a net lender to the world, the US economy is a net borrower, debt cannot continue to increase relative to GDP indefinitely. . .especially when economically detrimental actions such as the war in Iraq persist.

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This reminds me of the cliche-correlation is not the same thing as causation.That Bush was President at the time of an ailing economy doesn't mean he "destroyed" the economy.

People don't actually remember that the last 2 quarters of 2000 saw sluggish economic growth.The economy started ailing before Bush came into office and was already in a mild recession when he assumed office.

That being said,US GDP growth has outstripped that of the OECD average. 2007 was the first time since 2001 that growth rate stalled

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I think the economy is in recession and economic pundits are beginning to talk about it. But, come, the economy has been ailing since Bush took over. The housing market is cooling off like cucumber, the credit crunch is affecting departmental stores and delinquences on credit card bills is rising. So,the economy is in bad shape as of now. Bush has played a role in almost destroying the US's economy. On the other hand, Africa's economy is growing exponentially. Trowe price as of last year has started investing in Africa. And the yield for the past year has been quite impressive.

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Definition of recession is negative growth in 2 successive quarters. i.e if there were negative economic growth in 6 months together.

However, the way all the indicators are going it will take a minor miracle for their not be the 'R' word. The whole western world is superstititous about it that they don't like to pronounce it.

My view is that America has been very reckless but it hasn't just started today and because of the opportunities in emerging markets like China, India, Brazil and some African countries people are no longer dumping their capital in America.

Amazingly part of the reason is GW Bush, he singlehandedly did what most president before don't do, to say the rest of the world does not matter and that 'they can all go to hell'- Iraq war is that clear example.

Unfortunately there is no country that is an isalnd. America uses third world country and other countries money to grow her economy and there was no short supply of it until recently because of the bad shape of the economy no one is buying the dollar anymore, even OPEC discuss cutting their tieing of oil price with the dollar. Dollar is so weak that it will fall on mere speculation.

America foreign and domestic debt is growing at an alarming rate. they have spend Billions of dollars in figthing unwinnable phoney war in IRAQ.

If country like Nigeria has leadership I assure you that we have use the opportunity to esatblish ourselves with SA and other countries in North Africa to send a powerful message to the world for them to come and invest in our country.

Unfortunately, two major thing that OBJ could have done to send powerful signal to the world is Electricity and Infrastructures lke Road (lagos -Ibadan Express Road was built 30 years ago, no new built or good maintance of that road, no new road linking lagos with the East.

Thosc are complete failure of monumental proportions.

I hate to predict that YAR A'DULL on the account of his 7months and his cabinet compositionis unlikely to do better. The sole reason for my view is that how sunday will look like you will know on saturday. If he has AGF who is hell bent on letting ex-governors use rule of law and due process to launder monies then no confidence in the ordinary people.

THE WORD WE NEED IN NGERIA IS 'R' and that is REVOLUTION.

The Economy is grwowing because of some mercy from God and if we don't take advantage of it now to position ourselves once the 'R' of America and western nation is gone it may be our turn because capital has wings and he does fly to find greener pasture.

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Not only in America.

I think this is the time for us ( africans) to have revolutionary leaders. This is our time .

In UK have you noticed that immigrants are taking over the service sector of their economy. I guess they have over pampered their present generation that they will be a dissapointment in the nex 2 or 3 decades.

The Education that is helping them is what million of africans have aquired , but our main problem now in AFRICA especially nigeria is Leadership and followership.

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to be honest, its only a matter of time for the US economy to crash. from all indications doesnt look as though theres an nd in sight.  cross over to the other side of the pond, The asian economy is growing is like theres no tomorrow. African economy is also growing at an increasingly impressive stage.

only yesterday, i read diamond bank has been listed in the london stock exchange.

kenya is one of the few countries in the world and the only country in africa to transfer money via phone. , enough about africa

india have made there first car, guess how much, less than £2000. mind u india's economy is the fastest growing ecomony in the world.

china, japan and a hoost of other asian countires are now investing in nigeria, a very good time to consider going home if u live out side nigeria.

this only spells dooom for the american economy.   

by the way, houses prices are dropping in england but its the opposite in america.

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