Quote:
|
Originally Posted by Sphoolin
Like smokey said, the government is unable to dictate what companies do as they are privatized. They cannot have any say in what the company does/doesnt do therefore the only thing they can do is lessen the effect of economic downturn.
I remember someone saying recently that its all a load of shit. If this 'world recession' was not played on TV,radio and the internet, thus noone knew about it (or scared into it) and was told by the government to continue to spend, there would be no recession.
|
It's not that simple - the worlds money has dried up.
"toxic" Debts held by some banks have meant other banks dont trust each other and so no one will give out money. When there is no money there is no spending. I have clients who's businesses are having existing loans withdrawn sending them to the wall. Many people want loans but cant get them.
It is a cycle that repeats itself - you are right, money was too easy to obtain, but unfortunately, now it is too hard.
The downturn will continue until funds are freely available again.
Businesses mainly use debt to fund expansion - people spending wont provide enough funds, only debt.