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<blockquote data-quote="audioholic" data-source="post: 6754448" data-attributes="member: 549629"><p>I didnt read the whole thread, or even anything beyond the OP, but I&#039;ll answer. Basically, when the economy takes a nose dive, there is still the same amount of money in the world, but people are spending less, and hording more. You, me, and every other average Joe&#039;s spending habits dont affect it much (well, added together and given a very popular trend, they do) but large corporations affect is greatly. When the economy starts to recede, it drives companies and people to minimize spending, which creates a self-fulfilling prophecy. The big illusion about the stability of an economy is that its based on perception. If people think the economy is tanking, they spend less, save more, and the economy DOES tank. When its perceived that the economy is good, people (and companies) are more likely to spend money, which keeps employment rates high and drives the economy. Basically speaking, economic health is based on what people think will happen. What people think will happen affects their decision on spending, which directly affects the economy. To end this (global) economic down-turn, enough people (and companies) simply need to think the economy is stabilizing, which will increase their spending, and CREATE the economic up-turn. Its all quite silly when you look at it on this macro-scale. Like I said, self-fulfilling prophecy.</p></blockquote><p></p>

[QUOTE="audioholic, post: 6754448, member: 549629"] I didnt read the whole thread, or even anything beyond the OP, but I'll answer. Basically, when the economy takes a nose dive, there is still the same amount of money in the world, but people are spending less, and hording more. You, me, and every other average Joe's spending habits dont affect it much (well, added together and given a very popular trend, they do) but large corporations affect is greatly. When the economy starts to recede, it drives companies and people to minimize spending, which creates a self-fulfilling prophecy. The big illusion about the stability of an economy is that its based on perception. If people think the economy is tanking, they spend less, save more, and the economy DOES tank. When its perceived that the economy is good, people (and companies) are more likely to spend money, which keeps employment rates high and drives the economy. Basically speaking, economic health is based on what people think will happen. What people think will happen affects their decision on spending, which directly affects the economy. To end this (global) economic down-turn, enough people (and companies) simply need to think the economy is stabilizing, which will increase their spending, and CREATE the economic up-turn. Its all quite silly when you look at it on this macro-scale. Like I said, self-fulfilling prophecy. [/QUOTE]

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