The US dollar has been shrinking since 2003. The jobs were being outsourced to Asian countries. No one took care. The war on Iraq destroyed the morale of the US troops, allies deserted them, yet no one raised a finger. By the time 2007 began, the banks were worried if they would be able to get EMIs on time from homebuyers. The oil prices are rising. US companies are shutting shop worldwide. Is there still any doubt that the ‘super power’ is on the verge of a bigger crisis in 2008?

In 2007, economists, considered to be the benchmarks of various analyses, were divided on what ‘recession’ constitutes and what it does not. The figures are out there and to the laymen who have lost jobs and stopped to seek employment it is a worrisome picture. Instead of speculating why the stocks are falling at the Dow Jones, and why Euro and Yen have captured more power, some pessimists refuse to believe that the US economy is reeling under recession. It started with the housing slump. Real estate development and home buying was slow in 2005-06 practically all over US.

No one was buying second homes any more. The ones who had were selling them at lower rates. What ever profits US economy has was being diverted as funds to Middle East either to fund real estate development in UAE or in defending the troops in Iraq. The oil prices, consumption of natural gas and abuse of environment have also to be blamed for the crisis that is engulfing the US economy. No one believed that US economy could ever collapse. Despite the fact that two other major super powers Russia and Germany went through tough times and are still trying to balance their economies. US is not vulnerable and inevitable changes are taking place.

The stock markets are a daily indicator to the investors to make themselves stronger. Or take up some recession proof business till the storm passes. In 2007, home buyers in many states have been confronted with foreclosures. Credit bills and loans are unpaid. Financial institutions have now started to move with recovery agents and consultants to get back their interests before they go bankrupt themselves.

Consumers who have been addicted to material wealth have neglected the environment and basic needs to save the place where they live. Healthcare, insurance, skilled professionals now have to be satisfied with lesser pay packets. Brokers are finding it hard to get buyers for resale apartments and homes. Americans living abroad are also in constant fear of the depreciating dollar. The American dream is turning into a night mare for migrants who are returning home. As the cookie crumbles, will Uncle Sam accept the recession and work towards slowing down on its regressive economic policies?

 ~ By N. Nagpal, economist and category author. 2008.