# Global financial crisis really bad **URL:** \ **Category:** In My Humble Opinion\ **Created:** [February 21, 2016, 1:32am UTC](https://boards.straightdope.com/t/global-financial-crisis-really-bad/746658 "2016-02-21T01:32:06Z")\ **Posts on this page:** 18\ **Page:** 1
**Author:** ![sweat209](https://avatars.discourse-cdn.com/v4/letter/s/9fc348/32.png) [@sweat209](https://boards.straightdope.com/u/sweat209)\ **Post date:** [February 21, 2016, 1:32am UTC](https://boards.straightdope.com/t/global-financial-crisis-really-bad/746658/1 "2016-02-21T01:32:06Z")
What is going on in the world that so many countries the economy is doing very bad and so many places in the world are in a state of emergency!!! \*\* Most people now expect a global financial crisis this year 51% of British people say a global financial crisis in the next 12 months is likely – up from 40% in August > **[Most people now expect a global financial crisis this year | YouGov](https://yougov.co.uk/politics/articles/14342-most-british-people-expect-global-financial-crisis)** > > 51% of British people say a global financial crisis in the next 12 months is likely – up from 40% in August ========== Economic emergency declared in France # French President Francois Hollande has announced what he called “a state of economic and social emergency” involving a €2 billion plan to revive hiring and catch up with the world’s economy. [https://www.rt.com/business/329320-france-emergency-employment-hollande/](https://www.rt.com/business/329320-france-emergency-employment-hollande/) The world economic order is collapsing and this time there seems no way out The refugee crisis is paralleled by the savage fallout from a global financial system running out of control. > **[The world economic order is collapsing and this time there seems no way out |...](https://www.theguardian.com/commentisfree/2015/oct/11/world-order-collapse-refugees-emerging-economies-china-slowdown-recession)** > > The refugee crisis is paralleled by the savage fallout from a global financial system running out of control ========== 18 Numbers That Scream That A Crippling Global Recession Has Arrived The stock market has been soaring, but all of the hard economic numbers are telling us that a major global recession is here. This is so reminiscent of what happened back in 2008. Back then, all of the fundamentals were screaming “recession” by the middle of that year, but the equity markets didn’t respond until later. It appears that a similar pattern is playing out right now. The trade numbers, the manufacturing numbers, the inventory numbers and even the GDP numbers are all saying that a very significant economic slowdown is happening, but stock traders haven’t gotten the memo yet. In fact, stocks had an absolutely great month in October. Of course just like in 2008, stocks will eventually catch up with reality. It is just a matter of time. The following are 18 numbers that scream that a crippling global recession has arrived… > **[Washington's Blog » Interesting Stories From D.C. & Worldwide](https://washingtonsblog.com/)** > > Interesting Stories from D.C. & Worldwide \*\* ---
**Author:** ![sweat209](https://avatars.discourse-cdn.com/v4/letter/s/9fc348/32.png) [@sweat209](https://boards.straightdope.com/u/sweat209)\ **Post date:** [February 21, 2016, 1:33am UTC](https://boards.straightdope.com/t/global-financial-crisis-really-bad/746658/2 "2016-02-21T01:33:56Z")
why are so many countries in world are going into a major recession? And does this have any thing to do with why food prices are really high now for some strange reason. ---
**Author:** ![Chronos](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/chronos/32/134_2.png) [@Chronos](https://boards.straightdope.com/u/Chronos)\ **Post date:** [February 21, 2016, 1:47am UTC](https://boards.straightdope.com/t/global-financial-crisis-really-bad/746658/3 "2016-02-21T01:47:30Z")
Do you have any evidence that this is actually happening? ---
**Author:** ![sweat209](https://avatars.discourse-cdn.com/v4/letter/s/9fc348/32.png) [@sweat209](https://boards.straightdope.com/u/sweat209)\ **Post date:** [February 21, 2016, 1:56am UTC](https://boards.straightdope.com/t/global-financial-crisis-really-bad/746658/4 "2016-02-21T01:56:48Z")
> [@Chronos](#): > > Do you have any evidence that this is actually happening? Global financial crisis or economic slowdown many news sites point too. ---
**Author:** ![Chronos](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/chronos/32/134_2.png) [@Chronos](https://boards.straightdope.com/u/Chronos)\ **Post date:** [February 21, 2016, 2:22am UTC](https://boards.straightdope.com/t/global-financial-crisis-really-bad/746658/5 "2016-02-21T02:22:23Z")
OK, so why not show us some of these news sites that are saying so, instead of the ones saying pointless trivialities? ---
**Author:** ![samclem](https://avatars.discourse-cdn.com/v4/letter/s/a9a28c/32.png) [@samclem](https://boards.straightdope.com/u/samclem)\ **Post date:** [February 21, 2016, 2:44am UTC](https://boards.straightdope.com/t/global-financial-crisis-really-bad/746658/6 "2016-02-21T02:44:25Z")
The OP is better suited to a forum such as IMHO rather than General Questions. Moved. **samclem** , moderator. ---
**Author:** ![dolphinboy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dolphinboy/32/330_2.png) [@dolphinboy](https://boards.straightdope.com/u/dolphinboy)\ **Post date:** [February 21, 2016, 2:50am UTC](https://boards.straightdope.com/t/global-financial-crisis-really-bad/746658/7 "2016-02-21T02:50:05Z")
I don’t agree with your premise. Why should I believe what 51% of the British public say about anything? Where I live food costs are lower in many cases than they were a year ago, presumably due to the decreasing cost to ship food from one place to another due to a drop in oil prices. Opinions are not facts. Don’t believe everything you read on the Internet or see on TV. ---
**Author:** ![Simplicio](https://avatars.discourse-cdn.com/v4/letter/s/c37758/32.png) [@Simplicio](https://boards.straightdope.com/u/Simplicio)\ **Post date:** [February 21, 2016, 4:31am UTC](https://boards.straightdope.com/t/global-financial-crisis-really-bad/746658/8 "2016-02-21T04:31:12Z")
Crazy rants on the internet have predicted 49,438 of the last 3 recessions. ---
**Author:** ![Voyager](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/voyager/32/133_2.png) [@Voyager](https://boards.straightdope.com/u/Voyager)\ **Post date:** [February 21, 2016, 7:11am UTC](https://boards.straightdope.com/t/global-financial-crisis-really-bad/746658/9 "2016-02-21T07:11:21Z")
> [@sweat209](#): > > 18 Numbers That Scream That A Crippling Global Recession Has Arrived > The stock market has been soaring, but all of the hard economic numbers are telling us that a major global recession is here. This is so reminiscent of what happened back in 2008. Back then, all of the fundamentals were screaming “recession” by the middle of that year, but the equity markets didn’t respond until later. It appears that a similar pattern is playing out right now. The trade numbers, the manufacturing numbers, the inventory numbers and even the GDP numbers are all saying that a very significant economic slowdown is happening, but stock traders haven’t gotten the memo yet. In fact, stocks had an absolutely great month in October. Of course just like in 2008, stocks will eventually catch up with reality. It is just a matter of time. The following are 18 numbers that scream that a crippling global recession has arrived… > > [http://www.washingtonsblog.com/2015/11/18-numbers-that-scream-that-a-crippling-global-recession-has-arrived.html](http://www.washingtonsblog.com/2015/11/18-numbers-that-scream-that-a-crippling-global-recession-has-arrived.html) > > \*\* Just looked at your last cite. It appears the guy has a blog called “The End of the American Dream” so he is a professional doomsayer. And maybe not the most unbiased source. Also it is from last November. Doomsday seems to have been delayed slightly. China’s situation is a bit iffy, and growth is slowing. Commodity suppliers to China have slower sales. But thanks to China’s protectionist policies, the US and Europe are not likely to be affected much. I think it is good for the global economy in the long run if China does bad now, They’ve already had to spend down 25% of their foreign currency reserves, which is going to make it harder for them to interfere with projects in third world countries. Maybe they will finally publish some economic numbers that are believable. And you might do better reading a range of respectable economists and financial writers, and not believe some schmuck with a keyboard and an agenda. ---
**Author:** ![Exapno\_Mapcase](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/exapno_mapcase/32/1051_2.png) [@Exapno\_Mapcase](https://boards.straightdope.com/u/Exapno_Mapcase)\ **Post date:** [February 21, 2016, 3:19pm UTC](https://boards.straightdope.com/t/global-financial-crisis-really-bad/746658/10 "2016-02-21T15:19:25Z")
“The only function of economic forecasting is to make astrology look respectable.” - John Kenneth Galbraith. Here’s the article from [The Economist](http://www.economist.com/node/21685480) to go with it. ---
**Author:** ![sweat209](https://avatars.discourse-cdn.com/v4/letter/s/9fc348/32.png) [@sweat209](https://boards.straightdope.com/u/sweat209)\ **Post date:** [February 25, 2016, 10:46pm UTC](https://boards.straightdope.com/t/global-financial-crisis-really-bad/746658/11 "2016-02-25T22:46:34Z")
> [@dolphinboy](#): > > I don’t agree with your premise. Why should I believe what 51% of the British public say about anything? > > Where I live food costs are lower in many cases than they were a year ago, presumably due to the decreasing cost to ship food from one place to another due to a drop in oil prices. Opinions are not facts. Don’t believe everything you read on the Internet or see on TV. So you are saying source I used are not from reliable websites? Okay that rephrase the question does main mainstream media and economics believe the the economy is getting worse or staying the same? Or is the economy and jobs in the US, UK and Europe are improving just not has fast has they hope? ---
**Author:** ![sweat209](https://avatars.discourse-cdn.com/v4/letter/s/9fc348/32.png) [@sweat209](https://boards.straightdope.com/u/sweat209)\ **Post date:** [February 25, 2016, 10:53pm UTC](https://boards.straightdope.com/t/global-financial-crisis-really-bad/746658/12 "2016-02-25T22:53:24Z")
> [@Voyager](#): > > Just looked at your last cite. It appears the guy has a blog called “The End of the American Dream” so he is a professional doomsayer. And maybe not the most unbiased source. Also it is from last November. Doomsday seems to have been delayed slightly. > > China’s situation is a bit iffy, and growth is slowing. Commodity suppliers to China have slower sales. But thanks to China’s protectionist policies, the US and Europe are not likely to be affected much. > I think it is good for the global economy in the long run if China does bad now, They’ve already had to spend down 25% of their foreign currency reserves, which is going to make it harder for them to interfere with projects in third world countries. Maybe they will finally publish some economic numbers that are believable. > > And you might do better reading a range of respectable economists and financial writers, and not believe some schmuck with a keyboard and an agenda. Some people say that the price of oil being so cheap and every year it is getting cheaper and cheaper that this could be really bad for the economy. That there is a huge glut of oil on the market. Shale production has opened up a lot of opportunities for producing oil. When countries like the US can produce their own oil, they are less dependent on OPEC nations for their energy. Saudi Arabia can produce their oil for just $8 a barrel whereas shale production can be done as cheaply as $30 a barrel. SA has decided to flood the market to drive the price lower so they can price shale out of the market. ---
**Author:** ![sweat209](https://avatars.discourse-cdn.com/v4/letter/s/9fc348/32.png) [@sweat209](https://boards.straightdope.com/u/sweat209)\ **Post date:** [February 25, 2016, 11:05pm UTC](https://boards.straightdope.com/t/global-financial-crisis-really-bad/746658/13 "2016-02-25T23:05:28Z")
> [@Simplicio](#): > > Crazy rants on the internet have predicted 49,438 of the last 3 recessions. Because some people think that we have not recovered from the last recession and CNN and government and economic advisers that work for the government are not telling the truth!! \*\*Or we have NOT recovered from the recession or recovered very little from the last recession. \*\* And Obama did not fixed the problem but used FDR model that made government jobs like being roads, highways, pipe lines, power lines,bridges and dams!! And in 5 to 10 years when this is built than these people will be out of work. What will these people do? They will have to get job in the private sector!! And if there is no job they will be out of work. Saying all Obama did was not fixed the problem but made government work jobs. That the real problem is not fixed. ---
**Author:** ![sweat209](https://avatars.discourse-cdn.com/v4/letter/s/9fc348/32.png) [@sweat209](https://boards.straightdope.com/u/sweat209)\ **Post date:** [February 25, 2016, 11:12pm UTC](https://boards.straightdope.com/t/global-financial-crisis-really-bad/746658/14 "2016-02-25T23:12:16Z")
> [@](#): > > any evidence that this is actually happening? I think the first thing is does most mainstream news and economics believe the economy is getting better or staying the same? If the economy is getting better than a recession is highly unlikely any time soon. If the economy is really struggle to improve than their may be some really deep problems with the economy. ---
**Author:** ![sleestak](https://avatars.discourse-cdn.com/v4/letter/s/919ad9/32.png) [@sleestak](https://boards.straightdope.com/u/sleestak)\ **Post date:** [February 25, 2016, 11:33pm UTC](https://boards.straightdope.com/t/global-financial-crisis-really-bad/746658/15 "2016-02-25T23:33:56Z")
> [@Chronos](#): > > OK, so why not show us some of these news sites that are saying so, instead of the ones saying pointless trivialities? Citi is [raising the risk of](http://www.cnbc.com/2016/02/25/citi-risk-of-global-recession-rising.html)a global recession. > [@](#): > > We are currently in a highly precarious environment for global growth and asset markets after two to three years of relative calm. The OECD is [predicting](http://www.oecd.org/economy/elusive-global-growth-outlook-requires-urgent-policy-response.htm)bad things. > [@](#): > > Global growth prospects have practically flat-lined, recent data have disappointed and indicators point to slower growth in major economies, despite the boost from low oil prices and low interest rates,” said OECD Chief Economist Catherine L. Mann. “Given the significant downside risks posed by financial sector volatility and emerging market debt, a stronger collective policy approach is urgently needed, focusing on a greater use of fiscal and pro-growth structural policies, to strengthen growth and reduce financial risks. The IMF is looking at cutting its 2016 forecast for G-20 countries and thinks the economy is highly [vunerable](http://www.ibnlive.com/news/business/imf-warns-g20-that-world-economy-highly-vulnerable-1207603.html). > [@](#): > > The global recovery has weakened further amid increasing financial turbulence and falling asset prices," the IMF said. "Strong policy responses both at national and multilateral levels are needed to contain risks and propel the global economy to a more prosperous path. Note, no one says crisis. But when these folks start using phrases like ‘urgently needed’ and ‘highly precarious’, blowing it off is probably not the best idea. Of course, they could be absolutely wrong. The sentiment expressed in the OP may be a little overstated but some of the experts do see a big problem. Slee ---
**Author:** ![Caldazar](https://avatars.discourse-cdn.com/v4/letter/c/8e8cbc/32.png) [@Caldazar](https://boards.straightdope.com/u/Caldazar)\ **Post date:** [February 25, 2016, 11:49pm UTC](https://boards.straightdope.com/t/global-financial-crisis-really-bad/746658/16 "2016-02-25T23:49:28Z")
Major economies are improving following the events on 2007-2008, but they are generally recovering at a slower rate compared to previous recessions. This is being studied, and theories are being put forth as to why this might be the case. For example, the Federal Reserve published a preliminary analysis in 2011 for the US economy: [The Financial Crisis and Recovery: Why so Slow? - Federal Reserve Bank of Atlanta](https://www.frbatlanta.org/cenfis/publications/notesfromthevault/1110.aspx), but did not reach any solid conclusions as to why the recovery was slower than typical recoveries in recent past. It was postulated back in 2009-2010 that the recovery would be sluggish, with various experts citing economic studies and pieces of historical data. And the current recovery does appear to be in line with a more sluggish recovery, versus a typical recession-rebound. It does not appear that we are currently in recession. But due in part to the sluggish growth, there are potentially greater risks for various shocks to cause economic hardship and downturns, when compared to some theoretical, “normal” recession recovery. China’s situation is a bit unique in that the central government is trying to convert the model of Chinese economy to a more consumer-driven economy. So in additional to whatever global economic factors that are in play, you have local policy factors causing some additional economic pain in China. ---
**Author:** ![sweat209](https://avatars.discourse-cdn.com/v4/letter/s/9fc348/32.png) [@sweat209](https://boards.straightdope.com/u/sweat209)\ **Post date:** [February 28, 2016, 10:37pm UTC](https://boards.straightdope.com/t/global-financial-crisis-really-bad/746658/17 "2016-02-28T22:37:29Z")
Does anyone know why Europe is doing much worse than the US? Much more debt and much more unemployment. ---
**Author:** ![Caldazar](https://avatars.discourse-cdn.com/v4/letter/c/8e8cbc/32.png) [@Caldazar](https://boards.straightdope.com/u/Caldazar)\ **Post date:** [February 29, 2016, 4:00am UTC](https://boards.straightdope.com/t/global-financial-crisis-really-bad/746658/18 "2016-02-29T04:00:12Z")
> [@sweat209](#): > > Does anyone know why Europe is doing much worse than the US? > > Much more debt and much more unemployment. Not true at all. Just looking at the top 10 EU nations, Germany, UK, Netherlands, Sweden, Poland, Belgium, and Austria seem to be doing okay, unemployment and debt-wise. France, Italy, and Spain do have significant financial issues. Of course, France, Italy, and Spain are the 3rd, 4th, and 5th largest EU economies, so it is a genuine problem. But it’s not true that Europe is doing worse economically than the US in all cases. One economic theory put forth for France, Italy, and Spain’s financial issues was that the EU imposed austerity measures on France, Italy, and Spain (raise taxes, cut government spending) in an attempt to get these countries to shore up their weak finances following of the financial crisis. The theory is that this had a negative effect of raising unemployment and making the financial problems worse.