T
techman
Guest
Just wondering what people think has Ireland and Western economies generally escaped recession. I for one thought that the high tech meltdown in 2001 would have resulted in a much deeper recession with unemployment rising sustantially to around 9%. Of course this did not happen and it also didn't happen in the US and other Western economies. We merely had a mild recession where the only industries that suffered were high technology. This seems amazing many individuals and corporations ammassed enormous debts during the late 1990s. Normal logic would suggest that the huge debts ammassed should have resulted in prolonged period of thrift in order to clear these debts with many big corporations going bust this is what happened in previous recessions.
But one man Alan Greenspan has changed the rules by reducing interest rates to historically low levels. This has meant that corporations which should have went bust didn't. Also private individuals kept borrowing and spending which has resulted in a worlwide property boom. The question is has this really worked, have we really avoided the recession or is there a huge world recession coming.
But one man Alan Greenspan has changed the rules by reducing interest rates to historically low levels. This has meant that corporations which should have went bust didn't. Also private individuals kept borrowing and spending which has resulted in a worlwide property boom. The question is has this really worked, have we really avoided the recession or is there a huge world recession coming.