Watch the first five minutes of this video clip from BNN (Canada’s all-business channel). Peter Gibson is Vice-Chair of Desjardins Securities, and he uses the D-word. In fact he says he still believes there’s a 30% chance we can fall into a Depression if measures aren’t put in place to avoid a “second-wave” collapse in the U.S. real estate market. But there’s more to his comments than that.
I like this guy; he’s doing his research and thinking original thoughts about what’s going on – the big picture. I appreciate his original perspective on it. Considering the fact that 70% of the American economy for the last decade has been consumer spending, it makes good sense now for Obama to try to appease the consumer in order to restore consumer confidence, since that’s what’s really the problem now in today’s U.S. economy (it’s at the root of the problems going into the future).
Basically, if consumers are afraid to spend, invest, or whatever, and if consumers make up 70% of the economy… then… there’s no economy, no matter how much you “stimulate” it. You need to restore confidence. If CEO pay cuts do that, then let’s do that. Etc.
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{ 2 comments… read them below or add one }
I think that it is a fundamental problem – the US needs to change it’s consumer-based economy in order to get out of this one. How to do it? I don’t have a clue :)
I completely agree. It’s all about the consumer. Thanks for sharing this video. Very interesting.