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XMFSinchiruna (26.56)

U.S. Economic Crisis in Context vs. the World... a scary picture!



June 17, 2008 – Comments (11)

Warning:  this image may contain graphics unsuitable for children or adults.  The American Institute for Psychological and Financial Well-Being recommends limiting exposure to this graphic, as it has been shown to result in depression and severe anxiety.  If this graphic makes contact with the eyes, flush with gold and silver and call a comedian for a quick pick-me-up.


11 Comments – Post Your Own

#1) On June 17, 2008 at 11:09 AM, FreundInvesting (28.77) wrote:

so, what should we do? invest globally! (cough China cough)

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#2) On June 17, 2008 at 12:35 PM, FourthAxis (< 20) wrote:

I see your diminishing US market cap and raise you a bubbled financial sector!

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#3) On June 17, 2008 at 12:44 PM, zygnoda (< 20) wrote:

I was having a panick attack until I realized it was upside down. ;)

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#4) On June 17, 2008 at 1:39 PM, angusthermopylae (37.86) wrote:

so, if i understand the graph right, we started out with about 12 x 10^13 USD in the world market, and now we're about 15 x 10^12...our economy has "grown", but we're basically falling behind everyone else.

I wonder how if you throw in per capita--productivity per individual?  (you might have to narrow it down to working individuals) 

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#5) On June 17, 2008 at 3:15 PM, XMFSinchiruna (26.56) wrote:

Angus... I think you're misreading the chart.  The blue line is world total market cap, not U.S.... and the red line refers only to the left x-axis, i.e. the percentage of world market cap attributable to the U.S.

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#6) On June 17, 2008 at 3:52 PM, BigFatBEAR (28.37) wrote:

Isn't this a good thing?

Standard of living continues to rise in the US, and rise dramatically in many other countries.

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#7) On June 17, 2008 at 5:06 PM, XMFSinchiruna (26.56) wrote:

BFB... which US are you referring to?  The University of Senegal?  Show me one shred of evidence that standard of living in the United States is on the rise.  I can save you some time... you'll find no such evidence from a credible, impartial source.

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#8) On June 18, 2008 at 1:07 AM, adventurerneil (< 20) wrote:

Sinch - au contraire! Both the CIA and OECD point to increasing GDP per capita every year for the last long while in the US of A:, and as you probably know, GDP/capita is widely regarded as the quickest and one of the most accurate ways to gauge standard of living, especially when factoring in Purchasing Power Parity (or relative costs).

If you want to argue that most of the gains in real wages are going to the top of society, there's plenty of evidence to support that: 

While I love free market capitalism as much as most, it does make me sad to see such large swaths of the country facing stagnant wages and rising cost of living. I guess that's the cost of having our incentive structure. But I would still argue that developments in technology, science, medicine, etc. have made the standard of living for almost all of the US significantly higher over the last generation.

Anyway, I digress - at the end of the day (hey! that's now!) I think that the USA's relative power and influence (not to mention credibility) with the world has diminshed under Bush Jr, as your chart shows. But that doesn't mean we're not growing! It just means the developing world has started to catch up with us, which creates its own unique opportunities and challenges... (China + environment = mushroom cloud?)

Fool on!

PS. BFB is my alternate portfolio, testing out RonChapmanJr's theory that it's a lot easier to bank CAPS score on shorting junk than it is picking outperformers.

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#9) On June 18, 2008 at 4:06 PM, angusthermopylae (37.86) wrote:

Not misreading the chart, just carrying out the calculations--45% of a 30x10^12 world economy is about 12-13 x 10^12 in dollars.

Now, it's about 30% of a 55 x 10^12 world economy--meaning that it's now about 15-16x 10^12 dollars.

So, my point is that the world economy has grown about 90%, but our economy in relation has only grown 25% in the same time frame.

It's not a matter of having actually shrunk, but rather having lost a lead. As a friend of mine once said, "It's a digital world---you're either in the lead or behind."

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#10) On June 19, 2008 at 11:51 PM, TheGarcipian (34.96) wrote:

Hi angus,

"It's a digital world---you're either in the lead or behind."
It depends upon whom I'm behind, as the view may not be too bad. Check out those Brazilian babes. Now that's a hot commodity!

Or how about these hearty lasses from Austria:
Now that's the way to support your country!

(Just trying to bring some levity, albeit sexist, to a sorry situation)... 

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#11) On June 20, 2008 at 2:05 AM, angusthermopylae (37.86) wrote:

lol...being "behind" is not always a bad thing...I'll give you that.

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