The Great Depression… The Sequel?
September 29th, 2008 . by ErinAll mud slinging and political debating aside… Is anyone else extremely worried that ‘The Great Depression’ the sequel is rapidly approaching?
‘The Great Depression 2’ Starring Keanu Reeves, Parker Posey, and directed by Ed Wood.
As most of you know, the great House of Representatives rejected the $700 billion idea resulting in an almost 780 point drop in the stock market. We have Wachovia being swallowed up by Citi group and Wamu being devoured by JP Morgan Chase… which makes me wonder if the $700 billion dollar idea was as good of an idea as the New Deal?
Before I have hundreds of complaint comments let me explain my statement. For any one who has ever taken an American History course of any kind, you will have no doubt heard of Franklin D. Roosevelt’s ‘The New Deal’. The New Deal was supposed to get the American Economy out of the Great Depression by upping deficit spending by leaking money into the economy and providing jobs for Millions of unemployed Americans. Although it raised spirits a little and gave worth to the work force it wasn’t the New Deal that got us out of the Great Depression, it was World War II. With out the money we received for WWII we would probably still be in economic ruin… So where does that leave our economy now?
We’re already at ‘War’ which is sinking our economy lower and lower every day. The stimulus payment that was supposed to generate deficit spending didn’t really work out the way it was intended… So where does that leave our economy now?
We are in the middle of one of the nastiest Presidential elections since Grover Cleveland/ James Blaine. Don’t even get me started on the McCain/Obama issue… yikes.
Anyone want to move to Canada where they have free health care and moose?
Yeah, whatever happened to war being good for the economy! I guess I will just sit here, waiting for bankruptcy.
War is still pretty good for the economy, so long as we are selling arms to our allies (and we are). The war has cost a lot, but it’s not like we’re not getting anything back.
Also, we’re in a huge financial crisis obviously, but the economy has still managed to grow overall over the previous quarter and our GDP went up like 3.3% which is awesome. I don’t know if it will stay like that, but we’re not technically in a recession until we have 3 consecutive quarters without growth.
Also, the DOW crashed hard today, but it’s not the end of the world. Look at a 5 year chart - we’re still doing pretty awesome and after the crash we’re still above where we were in 2006. This is just the market correcting itself after a lot of bad speculation and lending. The stupid banks will go and the strong ones will get stronger.
Everything will suck for another year or so, then we’ll be kicking ass again, as usual. The most damaging thing is the media’s hellfire and brimstone doomsday sensationalist reporting that is making people lose confidence. Now is a great time to pick up a lot of stocks!
It is getting bad, but I think the media is making it so much worse and is going to cause a panic! we will self fulfill it!
I want to move to Canada with you, or Mexico, I want to open a gallery on the beach! By the way, I can not change my name on your reply, but this is actually Wendy - house of art. I’ve clicked change like 20 times and it won’t let me…
I think I’ll just stick it out in England:)
at risk of causing disent among the readers, I would have to disagree with Sam (though I recognize that he is a brilliant, philopolemic, political guru). The economic problems in this country are a bit more problematic than he states. we have to wait till we get our data from 3Q08 (in the next couple weeks) to determine if we are in a recession (this will make 3rd consecutive) and I would guess it is going to look sad. Unemployment is up, everywhere- especially Europe. and teh failing of the ’stupid banks’ will actually pull the ’strong’ banks down with them. I do agree that this is a market correction, but now is crappy time to pick up the stocks. in 3 months to a year… that will be a good time to buy cheap stocks. hoping that the economy will correct by istelf in a short time… that leads to the stagnation and rampant inflation that we saw after the 73′-74′ crash. that one lasted till 82′ pretty sure most people reading this blog never lived through that.
Jeff, I agree with you. Sam is a brilliant individual but you’re right about the economy. Most economic slumps happen because we hope that the economy will correct itself.
I would like to point out that even though it’s not as bad as it could be yet… and I stress yet… The economy’s Debt to Income ratio is the highest it has EVER been… something else to ponder.
this all makes my head hurt =/
OK, I am not smart enough to change my internet settings, I tried too, then last night I was placing a online order, and it came back saying I had removed my cookies, and so I had to go back in and try to figure out what I did!! Yeah I shouldn’t be allowed in the configuration area!! I’ll have to have my neighbor help me out!!
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