United States Heading towards a Depression?

If this mess compares to anything it compares best to 1873.

 

What will make it worse, or at the very least a repeat of past history is democrats throwing more gas on the fire. In other words, this spendulous bill.

Its quite apparent that the markets do not like the current administration. Its even more apparent that most of the country does not as well.

 

I know there was a major depression during that time, but did we even have a central bank during that time? I don't think we could compare to that far back, I think thats going a little too far back to look for an anology? I mean were much more global and bureaucratic to name just a few major differences, than we were in 1873. I don't know though maybe you could tell us why you think that.

 

1873 is a terrible comparison!

America did fine during the "long depression." By the end of the period, America had the world's highest standard of living, industrial output, and per-capita GDP.

Sure, there was some deflation, but our banking system wasn't leveraged to the sky so the major result was that people experienced rising purchasing power.

(It sucked in Europe, there were massive crop failures and big banking problems over the pond)

 

I thought Britain had the highest standard of living and industrial output until the 1940's? I know it was a superpower until then anyways.

 

Maybe if you're counting everything in her colonies, as well.

I checked out the Wikipedia page to make sure I wasn't going crazy, and there seems to be a whole boatload of revisionism going on there. Wiki says "America did worse" and blames Republicans, but at the time Europeans were calling it "the great American Commercial Invasion" because our industrialized agriculture was bringing food and hydro-carbon fuel to Europe at rock-bottom prices. This was a benefit to England who quickly grabbed up our exports, but it was disasterous for Russia and Central European nations that weren't industrialized to the point they could compete. There were some major crop failures in Europe as well, while a flu pandemic did a number on Americans.

I guess if you imagine the USA was the China of the late-19th century... and modern America is more or less in the position of uhhh... the Habsberg empire

OK Maybe its not such a bad comparison I just have to look past the surface a bit and realize America isn't in the same relative position this time around.

 

I count everything under britain control. You really can't exclude all the territoties they controled because that is what made them so powerful. The U.S sort of became a superpower in some similiar ways. It first started when we stoled and exploited from the native americans and blacks with slavery and bought/stoled the u.s land piece by piece from other countries.

 

The United States' subprime crisis has turned out to be bigger than previously thought and has the potential to drag the world's largest economy into a recession.

http://www.rediff.com/money/2008/feb/06sub.htm

 

see the date.....

 

The Crash of 2009 Is COMING To YOU!!
http://www.youtube.com/watch?v=YDEe0Ai6lTM

The situation leading up to the current crisis is very similiar to the situation of the Great Depression where the FED helped prop up the stock bubble in 1927. Kind of similiar to the actions regarding the housing bubble.

But I don't beleive that we could have another great depression. For one, the kind of deflation that we had in the 30's is not possible considering that we are no longer on a gold standard.

One factor that killed the economy in the 1873 depression was horse flu. Horses were too weak to pull wagons and even the US calvary had to fight the Indians on foot.

The 1873 depression was also caused by deflation in that silver coins were pulled form the money supply.

 

yes one year ago started that Subprime problem

this thread is also 416 days old now

 

Japan's GDP fell -12.7% in he 4th Qtr. of 2008

Houses aren't liqiud assets. It takes awhile for prices to correct.

 

look 3,000 cars abandoned in Dubai

Police have found more than 3,000 cars outside Dubai's international airport in recent months.

When the market collapsed and the emirate's once-booming economy started to slow down, many expatriates were left owning several homes and unable to pay the mortgages without credit.

http://www.dubaisharetalk.com/viewtopic.php?t=9458

 

China's export down 17.5% in January

http://www.chinadaily.com.cn/china/2009-02/11/content_7467126.htm

BEIJING -- China's export volume decreased 17.5 percent year-on-year to US$90.45 billion in January, the General Administration of Customs said on Wednesday.

 

Actually that "Subprime" thin has its origins in the Carter days. See also, CRA, and Clinton.

 

Roubini's 2009 outlook is for the S&P 500 to fall to 625. S&P futures are - 17 and the S&P 500 is currently at 802.

The State of California is planning to cut 20,000 jobs.

GM and Chrslyer are out of money and need $9 billion more.

The US is doing better than Japan in any case. Japn GDP was -12.7 in 4th Qtr 2008 vs the US GDP of -3.8%

 

Meanwhile revenues for retailers are up. Wal-Mart's sales are up. My sales are up. Tens of thousands of small businesses sales are UP. Fuel costs are DOWN.

California? Good move. Get rid of state jobs. They cost us money.
GM, Chrystler? Fuck em. They cost us money. Er, let me rephrase that. Fuck the labor unions that control them. Then GM and Chrystler can survive, without government aid. Problem is, the labor unions and the government are in each others pockets atm.

The US is doing pretty well right now. There are several sectors that are booming, and several areas that are rebounding. This "spendulous" bill however is going to kill any positive gains. What we need is for Odumba and Pelosi to leave things alone for a change. Personally I'd rather fund these stupid trips that retard takes on AF1, then pay for this crazy spending bill.

Setting up task forces, think tanks, focus groups. What a moron. I thought this guy was a lot of things prior to getting elected. Now that he's president I'm finding out he's just a run of the mill idiot.

We in the small business sector need relief. If my taxes were cut, I could hire two full time employees TODAY!!!!

If interest on lines of credit were lowered, I could hire yet another. Job creation occurs our sector, not in government spending.

Of course Obama has no way of knowing this given he's spent most of his life on welfare or with his hand out or in the pot. All we are going to do with this continued spending is breed more Obama's and more handout cases like this scumbag

 

Don't hold back, Mia. Tell us how you really feel.

All joking aside, I agree with you 100%. I thought some people would wake up by now and realize they were sweet talked into electing Obama, but people still thinks he's God and going to fix everything.

Sad...

 

I think at this point about 50% or more of that "54%" has come to that realization. Another 25% or just dumbfounded. The rest are waiting for their handouts!

 

Pshh you optimist. At least 90% are still sleeping (and waiting for handouts), HOPEnosis is a tough spell to break.