if not, what shd be done to restore? -bhaarathi bhaaskaran India
I guess there's no single answer to that. High profile guys like Alan Greenspan & Ben Bernanke have not been able to understand this conundrum. But what i feel is that its more to do with the dollar which is losing its sheen gradually. If dollar is not supported now (which infact is being done currently) america might as well slip from the numero uno position. Infact supporting the dollar is what is taking its toll on the amrerican economy. Whats ur viewpoint ? Do u think another currency will emerge as a substitute. If yes, then which one ? Restoring a giant economy isnt that easy. Look at the picture...Lending Institutions have failed, Big Companies are filing for bankruptcy every now & then etc. When credit offtake is jeopardised, can u expect investment..can u expect growth then....So the confidence will come back but it will take some time. Its like jaundice...u dont need medicine...It will cure by itself..America is a very resilient economy!