I was trying to make a point without getting marred in details. Yes this is a long recession. I agree. but its not that far off of a normal market cycle and perfectly normal as a correction to an artificially inflated economy.
Great Depression vs. 'Great Recession'
- Thread starter Chapdog
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I was trying to make a point without getting marred in details. Yes this is a long recession. I agree. but its not that far off of a normal market cycle and perfectly normal as a correction to an artificially inflated economy.
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The Almighty
Agreed, it looks like it was a bear raid. Start with bad rumors... followed by the shorts piling on. Creating a panic, a loss of capitalization and eventually the failure of Indy Bank, Lehman, Bear Stearns and maybe others.
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The Almighty
sorry, when someone posts statistics, I automatically assume they want to talk about the details.
your fault
sorry, when someone posts statistics, I automatically assume they want to talk about the details.
your fault
no stats or detail can justify the comparison of those numbers. I see your point but hopefully you see mine.
Even if you want to call this a severe recession its NOTHING like the Great depression but we are going to spend over 10x what they did then.
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The Almighty
I do indeed see your point. As I agreed that the flood of currency is astounding. However, when looking back at the Great Depression, one of the critical mistakes that they made was TIGHTENING the money supply going into the downturn. So the disparity is going to be exagerated to an extent by the fact that they did exactly the WRONG thing back in the early 30's vs. doing the right thing now.
This does not mean that they needed to go to the extent that they have, but the gap would be dramatically less had the politicians of the 30's done the right thing.
Moreover, in the 1930s interest rates weren't at zero so there were other tools at the government's disposal other than flooding the market with currency.
They had just begun with ideas like structured inflation. They started off with the idea to "let them fail", which hurt them.
Instead of "let them fail" we need to start breaking up the companies that are "too big to fail" and selling them along with the "bailout money" when they do fail. I'd rather pay people who have not failed to take over a failing behemoth than pay the people who originally failed to continue.
uscitizen
Villified User
Yes I think we will have to learn to be satisfied with less.
Most in the market seem to think it will come back just like it was.
uscitizen
Villified User
And what evidence is that based on?
SmarterthanYou
rebel
yeah, lord knows we couldn't have the people learning the hard way to stop making huge mistakes like letting government regulate shit in to failure.
Good Luck
New member
Comparisons to the great depression speculations are a bit premature, IMO. We have yet to see the results of all these spending bills being tossed around, as well as the federal reserve non-existent trillions being pumped into the system, what they are going to do to the value of the dollar, and what that in turn will do to investing practices, wages, etc.
Seems to me the great depressions started similarly with an expected post WWI downturn upon which the fed (over)reacted, and THEN the depression actually hit.
Seems to me the great depressions started similarly with an expected post WWI downturn upon which the fed (over)reacted, and THEN the depression actually hit.
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The Almighty
agreed
uscitizen
Villified User
What a revelation from a couple of right wingers!
Another year or two of this and they will be supporting welfare and such...
FUCK THE POLICE
911 EVERY DAY
There's been no recession with all of these indicators since the great depression. Maybe if they had reacted like we have in the great depression they wouldn't have wasted a whole decade?
uscitizen
Villified User
We have just generated a century of debt recently.....
FUCK THE POLICE
911 EVERY DAY
Rubbish. It's not like our debt as % of GDP hasn't been this high before - it's been higher. They dealt with that in the 50's and late 40's, which was a time of unparralled prosperity.