Federal Reserve Bank
Both sides of the North Atlantic is that the prices of properties are reduced, credit shrinks and upward of oil affects all products. In Britain, even though inflation is a 2.5% and the unemployment rate is 5.5%, the sum of the personal debts of its inhabitants is soon coming to the 3 trillion dollars (more than USD 110,000 for each family). The latter is a time bomb which will generate more bankruptcies and that may slow the appetites of consumers and therefore sales. While for Alan Greespan, former head of the U.S. Federal Reserve Bank, his country does not have a recession (the same that, according to him, occurs in jumps and not gradually), most of the major financial observers believe the mega-power is entering into this. The US recession may drag the rest of the world.
If this is small its effects will not be as catastrophic, but Hillary Clinton warns that this should be long and deep, which would lead to strong changes in world economy and politics and to trigger new conflicts and wars. Twists in the economy in the U.S. than usual is that everytime there is a drop in the economy also falls the governing party. In 1932 Roosevelt opened 32 years of democratic rule after the collapse of Wall Street. In 1980 Reagan initiated the great Republican transformation. For more information see this site: gary cohn. Bill Clinton first came to the White House questioning Bush father by the crisis (it’s the economy stupid was the phrase that rocked to display the Achilles heel of the Republicans) and now his wife wants to repeat the dish appear as the most qualified to give an economic turnaround to the Government party. Democrats believe that this is due to that the Republicans have much deregulated the economy and they propose protectionist measures or that they encourage spending. Part of their program consists of investing more in health and raise the income of the most disadvantaged sectors to encourage consumption.