How Bad Is The Economic Crisis And When Will It End?
In 2008 the world's financial markets experienced their worst crisis since the Great Depression of the 1930's !!
So the burning questions for many people are, "Is the worst behind us or still ahead of us?", and "What lies ahead in 2009?".
Clearly, the United States will experience a deep and protracted contraction lasting around two years at least, and certainly beyond the end of 2009.
And to make matters even worse, there will also be recessions in the Euro Zone, the United Kingdom, Continental Europe, Canada, Japan, and all the other supposedly advanced economies.
Although the present crisis was triggered by the collapse of the U.S. housing bubble it was by no means what caused it because America's credit excesses in residential mortgages, commercial mortgages, credit cards, auto loans, and student loans also played a big part in it and as a consequence overall credit losses are likely to be around a staggering $2 trillion !!!
In the next few months, the macro-economic news and the various earnings/profits reports from all around the world will be far worse than were expected thus putting further downward pressure on the prices of risky assets, and this can be largely blamed on equity analysts that are still refusing to admit to themselves and to the world just how grave the situation really is!
So, somewhat sadly the worst is still ahead of us and only if aggressive and coordinated actions are both orchestrated and taken by the advanced and emerging-market countries is there even the slightest possibility that that the global economy will start to recover before 2010.
