Looking ahead to the next crisis...

  • Posted by a hidden member.
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    Sep 19, 2008 4:27 PM GMT
    During the hayday of the dotcom bubble, nobody asked what the inherent risks were? During this real estate bubble, nobody asked what the inherent risks were? So in both cases, things got way out of hand.

    So I have been wondering what is going on now that has the potential to be the next big crisis and that we should be paying attention to to avert a crisis.

    I am thinking that our national debt is probably an issue that should be being addressed. With the announcement today, that the US will be taking on billions of dollars of new financial responsibility, I am wondering how that is going to be paid for.

    Is the government going to borrow to get that money and grow our debt, or will there be taxes to pay for this?

    How dangerous is our current debt level to the financial well-being of the US?

    Is our debt going to put us in a compromise state, like foreign oil does now?

    Is this billions of dollars of new responsibility going to stay as billions, or is this just an estimate with a good chance of growing to a trillion?

    Is this a rosy estimate or like the cost of the Iraq war, an estimate that the Administration thinks the people will bear politically?
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    Sep 19, 2008 5:19 PM GMT
    Caslon, I don't have the answer to your questions but speculation is that the next big thing is going to be credit cards. The housing situation took most of us by surprise and just when we thought it was over, look what happened.

    Americans are using cc's more and more everyday and companies are issuing cards to students, foreign nationals and unemployed. I know this because when I was in grad school there were lots of international students with american issued credit cards, yet they were not working and most will be returning to their home country after they are done with their studies.

    If credit card companies were to collapse, I don't think the government should bail them out..they should be held accountable for their negligence.
  • Koaa2

    Posts: 1558

    Sep 19, 2008 5:37 PM GMT
    The Government and big business are more than ever in bed together, and unless the middle class begins some kind of revolt, we are going to continue to be screwed over and the wealthy will continue to make ungodly amounts of profits.
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    Sep 19, 2008 5:42 PM GMT
    I don't know why more politicians don't talk about this, but the US government's deficit and accumulating debt are putting the country's future well-being at grave risk.

    Regardless of whether you are a Republican, an Independent or a Democrat, I don't see the following pressures disappearing anytime soon.

    - an aging population that will cost more and more in entitlements (social security, medicare);

    - health care costs that are far outstripping inflation (this is a problem seen worldwide not just the US);

    - a very expensive military whose role is still contentious (world's policeman, guardian against terrorism, a politically sensitive generator of employment, all of the above);

    - tax for many Americans is a four letter word. Like many other citizens of the world, it is much easier to demand that the Government meet your needs than for the Government to demand that you pay for them (and the government includes the Military);

    - Like other rich countries, the US citizen's have become "me first" instead of viewing themselves as part of a greater community. Therefore, it is becoming increasingly difficult to reach a compromise on issues including what to do about the deficit and debt;

    - people generally have a mindset of "live for today, don't worry about tomorrow". Unfortunately tomorrow does come, and problems will eventually need to be tackled. The longer people wait to tackle a problem the more painful the solution will be (Canadians started feeling the pain in 1994 when the Liberal government started to tackle the federal deficit in a serious way).