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Brave Stranger....I didn't even see your typo until you pointed it out. I'm just sayin that you can believe whatever you choose to believe, regardless of what anyone writes in their post.
Brave Stranger....I didn't even see your typo until you pointed it out. I'm just sayin that you can believe whatever you choose to believe, regardless of what anyone writes in their post.
Thanks No hard feelings. We all are guilty of sometimes reading things the wrong way. Lol, I know I am.
I have very little faith in this so called economic recovery. There is very little real growth being made by companies posting profits. The only reason profits are being made at all is because 6.5 million workers are no longer on their former employers payroll, combined with the medical coverage which was also cut do to unemployed workers. More unemployed person’s means less buying power for the U.S. worker. Seems the only way Wall Street's profits can be maintained is to continue to fire their work force. What we are seeing is a economy constantly contracting.
I have very little faith in this so called economic recovery. There is very little real growth being made by companies posting profits. The only reason profits are being made at all is because 6.5 million workers are no longer on their former employers payroll, combined with the medical coverage which was also cut do to unemployed workers. More unemployed person’s means less buying power for the U.S. worker. Seems the only way Wall Street's profits can be maintained is to continue to fire their work force. What we are seeing is a economy constantly contracting.
The recovery will happen because they always do. The real question is not if but when and what form the recovery will take. The recovery from the recession at the end of the 1980s was based on a real increase in worker productivity plus the introduction of new technologies mainly in the form of the internet and related business opportunities.
I just wish I was smart enough to see what will drive this recovery and invest in the businesses which will lead it.
The recovery will happen because they always do. The real question is not if but when and what form the recovery will take. The recovery from the recession at the end of the 1980s was based on a real increase in worker productivity plus the introduction of new technologies mainly in the form of the internet and related business opportunities.
I just wish I was smart enough to see what will drive this recovery and invest in the businesses which will lead it.
There are many factors which are present now which did not exist in the 1970's. No two economic crises are the same. What has not changed is the government foresight in predicting economic problems.
There are many factors which are present now which did not exist in the 1970's. No two economic crises are the same. What has not changed is the government foresight in predicting economic problems.
That is correct. But there is no such thing as a perpetual downturn. The economy will recover. The when and how are the key unknowns.
The question is what kind of recovery. Will there be a permanent 10%-12% unemployment level?
Possible but unlikely. Generally, there is enough innovation so that new businesses develop as part of the recovery. That has certainly been the case in all other recessions.
I've been looking back farther then the 70's recessions. I took a look at 1929-1932 and we seem to be floating along that trend. 1929 was "a" crash but it took a few years of dragging and bouncing, up to 1934 before the depression was fully realized.
So if you look back then 2007 is when the wheels started falling off this train and we've been dragging since..up and then down and then up. Now the up's are being compared to last month or last year (and last year was nothing to write home about) and saying things are "less worse".
It is interesting to read about right before, during and right after the Crash.
Some interesting snippets which apply today:
"The crash of 1929 caused 'fear mixed with a vertiginous disorientation', but 'shock was quickly cauterized with denial, both official and mass-delusional'."
The main question is: Did the "'29 Crash spark The Depression?",or did it merely coincide with the bursting of a credit-inspired economic bubble?
"Most academic experts agree on one aspect of the crash: It wiped out billions of dollars of wealth in one day, and this immediately depressed consumer buying."
But instead what plunged the country into a deep depression, was the collapse of the banking system during three waves of panics over the 1930-33 period.
"Most academic experts agree on one aspect of the crash: It wiped out billions of dollars of wealth in one day, and this immediately depressed consumer buying."
But instead what plunged the country into a deep depression, was the collapse of the banking system during three waves of panics over the 1930-33 period.
Also, government reaction in the Great Depression was very different. Rather than pump liquidity into the economy, they took it out and hiked interest rates as well. In the UK they compounded this error by going back onto the gold standard.
I would not overstate consumer spending. It is only really after WW2 that most people began to have disposable income.
While government have a lot of blame for allowing the credit bubble to get completely out of hand, their reaction to the near-failure of the banking system was probably right. There will, of course, be more bank failures, but the system is not going to fail.
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