What trick will the US Government pull out of the hat this week Are we in for this again ? http://tinyurl.com/ywlo5s Maybe not but we are sure in for a load trouble, this has not bottomed out by a long way yet Talk in the news of one more bank in deep trouble Maybe Lehman Bros or other Comments :-
not yet but it's starting to look like it. I hope most problems will stay in the usa but fear it'll have a global effect..
Its not going to be local, stocks are down today around the world and the dollar is losing value against many currencies This is not a one day event
Absolutely. Everything is proceeding according to the historically defined schedule We're in a total panic mode and this panic hits the heart of our economic system, the financial institutions. All it takes at this point is a rumor to start a chain-reaction, and the rumors are currently killing Lehman Brothers
It may not be that bad, but it may be the fear of fear itself that will turn the current suspected recession into a full blown depression. While we should try to live within our means in preparation for an expected slowdown, we should not be overtly pessimistic about the future. We may be at the bottom now but what goes down must come up. Most importantly is to live as usual, eat as usual but spend more cautiously. It may just be another recession, but if we worry too much and tighten up our belts, stop the necessary investments and so on, it may jolly well turn out to be a depression.
BG, I guess you couldn't have used this thread? http://forums.digitalpoint.com/showthread.php?t=622067 Tell us about the recessionary or depression-like effects in Britain.
I think to answer your question that the situation is so fluid that is why I asked whether we are in a 1932 type position? I would like to know the answer to that from the analysts Thanks Re the UK as I am based in Asia year round, we get a big impact from what happens both in USA and to a lesser level what happens in UK We earn alll our revenue in US Dollars so this is a big issue for us
When unemployment hits 15%, then we're in trouble. 15% by the old measure, not the new one where people roll off the unemployment count after a period of time.
I think you mean unemployment, Great Depression is going to pale in comparison with this one, but it's not gonna get THAT bad
Fixed, and I don't understand the rest of your statement. During the G.D., unemployment was over 20%.
After reading about the great depression it doesn't seem as if the scope of the problems is as severe. The GD hit the US and Europe dramatically hard. World productivity is far more widepread. Some of the problems that hit in the US aren't hitting; for instance many many rural and small banks were wiped out and there was no insurance, thereby utterly ruining depositors in those institutions. Still, the factors hitting today in the US are larger and more widespread than during recent recessions. And the volume of bad US debt spread around the world due to its size and the easy marketability of debt instruments. US govt, private citizens, and businesses have lots of debt. Eurpean nations and businesses carry tons of debt. Debt is always a problem in slowdowns. It tends to ratchet up the seriousness of problems. Doesn't look good, but it doesn't look like the GD.
The biggest issues are, and will remain 1) we have dismantled our productive infrastructure, removing our means of liquidating debt by working it off (trade deficit) 2) the dollar is in a free fall. The currency could not be debased as it is today under the gold standard of the GD era.
Maybe people should stop worrying about a depression and make plans and look to take advantage of a depression like true opportunists. How would an opportunist go about taking advantage of a depression ? Or is there no way to survive and even prosper in a depression situation , utilising some ingenuous thinking ?
A coworker pointed out that there won't be a "run for the bank" of people trying to take out their savings, like there was during the Depression. Thus being a big factor in banks failing. The reason? Because most people don't have much in the bank these days. The banks of today are our creditors.
Bah, they won't go under because of that. PayPal is notorious for denying people access to their money for almost any reason.
Make sure you have diversified your wealth, do not hold only stocks, or only cash. Be debt free. Put yourself in a position to buy low and wait out an opportunity (possibly years) to sell high. Electronic money and shopping electronically. We are barely a cash society anymore. That's a big psychological difference.
That's sound advice. There are solutions to and opportunities in every problem, even if that problem is a depression.