Recession Ahead? from Forbes.com
Personally, I think they're going into one. If they do, I don't know how Philippines will be affected, how the world will be affected. Their problems
may possibly leak over to our market (the housing crisis).
Good call from Forbes.
Of course with OFW remittances being a huge chunk of the country's income, we'll be affected for sure. Just how much, I'm still waiting to feel.
Right now, more than ever, is the right time to be thrifty.
I think it's still too early to tell, and Forbes could have used some tact considering its reputation in the private business sector. It could potentially make the situation even worse, but then that's probably overestimating Forbes' influence.
The chart below shows the current status of the US subprime crisis:
http://en.wikipedia.org/wiki/Image:Subprime_diagram.png
If we look carefully at all the proposed responses, they are technically adequate but need to be played out thoroughly for any conclusion to be made. At the moment, the economic situation is bad but not terrible. A downturn is different from a recession, which is usually characterized by six straight months of decline, continued by an extremely slow period of growth. Also, the Philippines might not be affected as much as you guys might think, since there are Filipinos all over the world and it is only the US (and Japan because of its export orientation to the US) that is going to potentially suffer from a downturn in the US home economy, and I'm getting redundant. Despite the stock markets crashing, the economies in individual continents like Europe and Asia are actually in good shape.
If more than three people here are interested, I can write a long substantiation of my views with technical details. I am sorry to disappoint you but AppleHead is a nerd.
It's beautiful how GMA is taking credit for improving our economy, with the "strengthened peso" as her evidence, when the peso's increased value is actually more closely linked to the currently weak and unstable US economy. She's putting so much emphasis on the peso's rapid climb, while forgetting the fact that a stable currency is what we actually need. It's not like the prices of goods are decreasing, even with the current exchange rate. But then after all this BS I've been typing, I now realize that what I'm posting is probably more appropriate for the another thread. -_-
Anyway, to get back on to the actual topic: Whichever way it goes for the US, the Philippines will definitely be affected, as a very large chunk of our goods and services are also exported to the US. US goes up, we won't necessarily go up. -_- But if US goes down, we'll definitely feel the pain.
NiX Wrote:Anyway, to get back on to the actual topic: Whichever way it goes for the US, the Philippines will definitely be affected, as a very large chunk of our goods and services are also exported to the US. US goes up, we won't necessarily go up. -_- But if US goes down, we'll definitely feel the pain.
Don't be so pessimistic! All the Philippines has to do is diversify export markets, or make itself more attractive to foreign investors who would otherwise have invested in the US or other developed countries. It could also raise the manufacturing standards of staple exports. The Philippines has always had potential, unlike its politicians. It could also do the usual tactic, but export its people to be domestic helpers in countries other than the US.
What can I say? The Philippines has been America's bitch since the end of World War II. I don't foresee a change anytime soon unless World War III hits. It doesn't help either that our current President is such a prostitute.