Posted on 03/17/2009 7:31:50 AM PDT by TigerLikesRooster
Surviving the Great Collapse
By Robert Kuttner | March 12, 2009
THIS ECONOMIC CRISIS doesn't have to be a second Great Depression - if government does nearly everything right, and soon. But if government doesn't do more, and fast, this could be worse than the 1930s. Why? Three big reasons:
Finance: A Doomsday Machine. The financial system is in far worse shape than it was when the stock market crashed in October 1929. In the 1920s, there was a stock market bubble, mainly because people could play the market "on margin," borrowing to invest in stocks. There were also scams like the original Mr. Ponzi's. Like in the present decade, the Federal Reserve helped to enable the game, with low interest rates and few rules.
But today, thanks to "securitization" of loans and the ability of insiders to create exotic and unfathomable financial instruments, the speculative system makes buying stocks on margin look like child's play. In the aftermath of the crash of 2008, the process of sorting it all out and getting banks functioning again is something that markets simply cannot do.
We are not even clear who owns what. The wise guys on Wall Street invented a doomsday machine from which there is no market escape.
In 1929 when the stock market crashed, the banking system was relatively healthy. Bank customers played these speculative games and took the losses, not banks. This time, the banks drank their own Kool-aid.
(Excerpt) Read more at boston.com ...
He is just scared sh*t.
Ping!
>The economy now bears all the hallmarks of a depression. <
president obama-hoover.
“In 1929 when the stock market crashed, the banking system was relatively healthy.”
Sure. That’s why so many of them failed that FDR ultimately declared a ‘bank holiday” (during which several thousand more failed).
This guy is full of it!
No matter how bad anyone says it’s gonna be, it will be a zillion times worse.
No.
No, we cannot.
Ever.
Purge or be Purged...
We’ve already nationalized the banks (frozen in slush ATTM). We can take the hit and the pain now, postpone for years or decades, or pump one last inflationary bubble. Japan’s attempt to avoid pain infected the whole world through the carry trade. The same thing is being setup again except on a worldwide basis.
So what do we do?
And what are the chance of that happening? I'll give give 1,000,000:1 odds.
There's nothing we can do.
Except die.
“THIS ECONOMIC CRISIS doesn’t have to be a second Great Depression - if government does nearly everything right, and soon..”
Is there are aware and honest person out there who even thinks this is a posibility anymore?
Does anyone except the 35% hard core BDS kool aid drinkers think “obama land” is being governed by wise people?
Every man/woman/family is on their own to protect themselves against this huge collapse of our government ...and against those of us who cannot or will not do so.
There is no word zillion.
However, if you had used the word quadrabagillion, you would be correct.
Hi Laz!! I'm down here. No. Here!! No wait!!! I'm over here!!!
yes, there is something you can do.
Rediscover the concept of self reliance and make plans acordingly.
In 1933.
Three and a half years later.
Too Big to Fail has led to Too Sick to Save. Unfortunately until all these giga/tera-failures have been allowed to fail, and this includes governments, no healing can take place.
We are all gonna die no matter what.
“if government does nearly everything right, and soon”
Therein lies the problem. At least FDR was not deliberately trying to destroy the country. [I’m no FDR fan, either.]
The key word was “relatively”. Without runs, they would have been fine. Modern banks need to be bailed out even without runs.
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