A Great 2008-2009 Depression
By Daniel at 11 October, 2008, 12:03 am
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“The Feds cannot print enough money to save the day. We’re going into the worst depression that any living person has ever seen. It’s going to be worse than the Great Depression of 1929.”
Do you realize that Barack Obama recently said that he would not rescind the Bush tax cuts. He said this on ABC, September 7, 2008, IF the economy were in a recession. IF the economy is in RECESSION?! This is worse than a recession! We’re going into the greatest depression and people better beware.
I’ll tell you what I know other people are doing. They are taking their money out of the banks. People with a lot of money are moving it overseas into what they think are safer banks. There’s going to be a day here in the United States that the authorities are going to call a Bank Holiday. AIG is calling for more than $40 billion today. The Feds just bailed out Freddie Mac and Fannie Mac to the tune that could cost taxpayers up to $300 billion or more. Our national debt has been increased to at least $12 TRILLION! The Feds cannot print enough money to save the day.
So, we believe what the government is going to do is call a ‘bank holiday.’ You’re going to hear all those fat mouths out there that were saying that everything was OK, the FDIC was going to insure your money. But, Linda, no one is going to be able to get it out all at once. Just like they did in Argentina and they did it in Brazil when their economies collapsed and their currencies collapsed and their economies were sinking. You’re not going to be able to get all your money out at one time. Our government is going to say, ‘It’s insured. Don’t worry about it, but we need to pause. Take a deep breath.’ Oh, boy, do they love that phrase! ‘Take a deep breath.’
Take a look at this last Saturday’s (September 13, 2008) New York Times. The headlines story on the business page is to just pause and reflect. Don’t panic. Everything is OK. The ship is sinking and the best they can say is, ‘Doesn’t the band sound great!’
All the article is here very interesting:
http://www.earthfiles.com/news.php?ID=1473&category=Environment
http://investment-blog.net/us-1929-great-depression-vs-2008-financial-housing-credit-crisis/
The pathetic part of this situation it is largely self induced and there are definitely strong similarities to the 1920’s which is we are fearing today.
I believe I remember my late father warning about leverage, not only in stocks but purchses of goods. Cars were paid for and driven for years, not leased. Most average houses were modest and functional, no great rooms, theater halls, exercise rooms etc. More odd is the fact that most of this was accomplished with only one family member working.
Many millioaires of the twenties at least manufactured a tangable product, be it cars, steel, coal, railroads. Today the likes of Dick Fuld produce nothing tanagible, create value only for their own companies through share price and have a total lack of disregard for the aftermarket product.
Investors bought packages of products by sharp young market people who had little regard of what might happen later. Traders swaped these products on the trading desks. Yes, buyer beware always, but when the seller has no risk or personal money in the product prior to sale, how objective can he or she be. By and large, this was the twenty something MBA whiz that wrecked the train, Fuld only profited from these young engineers.
Similar post:
U.S great 2009-2010 depression is more likely now
Here’s what you can do to help your families prepare for 2009-2010
U.S 1929 Great Depression vs. 2008 financial, housing, credit crisis
Roubini Says `Panic’ May Force Market Shutdown
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Another big problem is most everything consumers buy now is all based on credit and not cash. Eventually this catches up to folks during hard times.
No offense, but this blog is a rather lame argument. It lacks substance, and it seems that you are just a pessimist, looking to amplify the anxiety that already has the world in panick.
There is no doubt that we are currently experiencing dire and unprecented economic times, but America will weather this storm. It will take time, but we will overcome this mess. Now is the time to invest in the market (assuming you have a healthy cash reserve), if you have a job. Now is a time for optimism!
Yours Truly,
Anonymous
Interesting article thanks, but you have some typos.
you kind of didnt answer my question i asked what is the soulution for this issue of the great depression i really wish i would of gotten my answer. please be able to answer the question’s that people have instead of saying you did because you didnt
thank you and have a blessed day
The solution to the global financial crisis
Bernanke believes inflation is the solution. But, if everything is costing more with high unemployment, won’t it take people longer to save and pay down debt when more money is going out for food and fuel? How can wages go up when there are more workers than jobs?
To me, what Bernanke says is a solution has more problems buried in it than help for workers and consumers.
Saving is the solution! However, to get to that point, requires a depression first. People have to save and have enough in savings to spend during down periods instead of have government spend for them. Savings acts as a damper and minimizes booms and busts. The savings during the up time, reduces the potential for “irrational exuberance,” and the ability to spend from savings and pay bills and buy food and clothes and other things during down periods keeps the recession from getting too bad.
Strongly recommend you to read: Here’s what you can do to help your families prepare for 2009-2010
Preparation ideas for the deeper economic crisis
Does anyone here think maybe this ecconomic depression was made just so Congress could pass certain legislation? Keep us slaves to the government? To me this is the scarriest thing to have to live through and feel Washington is either not listening or don’t care as long as their agenda goes smoothly. If Paulson and Bernanke are so hot and on top of things why did they wait till they needed so much money? Just so the government could own banks and businesses? I trust not this government anymore. Something in all this stinks to high heaven and we all need to wake up.
Why is it everyone one wants to place blame? Wake up we are in this now. Doing some thing instead of nothing is better for all.
Most of what was needed to be done has been done in the way of stop the bleeding in the now. Sure this still needs more regulating to complete the overhaul of the system, I would like to think congress would start working together for the common good one of these days.
Everyone has an opinion on what would fix this situation, I stay very simple with mine. Instead of the government giving more unemployment to those that have no jobs, or there is just none to be found. The government should once again step forward and create jobs, this builds hopes and dreams of a better time. Is that not what we are all after?