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Will the war push the world into a recession?
Former Member
Posts: 1,876,323 The Mix Honorary Guru
I read occupancy at luxury hotels in Paris is at 25%...it's usually at 60% this time of year. I know after 9/11 one of the things that hurt the American economy was that people were home watching CNN instead of going out to movies etc. and spending money.
So what's your take on the world's economy vis a vie the war?
Always wanted to say vis a vie!:D
So what's your take on the world's economy vis a vie the war?
Always wanted to say vis a vie!:D
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Destabilisation like this tends to affect confidence but the financial markets are fickle and if it is over quickly they are likely to restore confidence, especially if there is a new supply of oil on tap.....
The more important effects will be any changes in the trade flow and probably most significantly the govt budgets of the nations at war.
The UK govt budget is in 2 weeks time and it isn't likely to be good.
The US have had to borrow a huge amount of money (Bush is asking for $75 billion) that could have serious implications.......
But I think, having never studies economics or finance before...:D
I think we'd be booming now without the war. Just based on all these stats last year of lower inventories, sales and growth of 4%.
They say, all the Wall Street guys react to events within the war. That's why it's going up and down. When they said it was going to be a short war....stocks went up more in a single day than they have the entire time I've been alive. Then they showed the POW's...stocks fell.
Maybe increased spending on the military will crowd-out more productive investment. The growing hostility to the US may make foreign investment more risky as well.
There are so many things that could happen, we won't know properly for years what the cause and effects are..........
Meantime, British Airways laid off 13,000 more employees because of the slow down with the war. And the American airlines are laying off people too.
A US rockband (Tenacious D) cancelled some gigs they were going to do in Scandanvaia because there families didn't want them going any nearer the warzone.
So i'm not sure what the causes are..........
Liberality of laws does not mean that the ability of the security service to stop attacks is diminished in anyway..........