this is like 1873, not 1929

[Mav88]

Sorry BuyLo, I didn't see your previous posting of this article.

I am concerned about a depression that accompanies Public debt to GDP ratios greater than 1, that is new on this potential one.

I am also concerned about trying to employ uneducated people in what has become an increasingly information based economy with a premium on intelligence and education. It seems the only way out for them is trade protectionism, but that also seems like a dark alley.

Some economists said that US wages were artificially high, but try telling that to the guy just laid off from GM. Tell him that he needs to make India wages in order for the global economy to work.

 

[S2007S]

2008 is 2008 and cannot be compared to 1929 or 1873. What's going on now is something that has never been seen before. There is no comparing this to any economy we have had over the last 150 years.

 

[Mecro]

Quote from Mav88:

Perhaps that is what Paulson and Bernanke are reading and trying to prevent.

Stop being so gullible. This crisis was planned for years, it's an execution of a plan.

1873 was a result of the banks playing with money supply, more specifically, Jay Cooke. He was a force in pushing for nationalized bank, and hence, a central bank.

Same old game, print lot of debt money, then contract. It's thousands of years old. Yet people refuse to learn.

 

[drsteph]

Quote from Mecro:

Stop being so gullible. This crisis was planned for years, it's an execution of a plan.

1873 was a result of the banks playing with money supply, more specifically, Jay Cooke. He was a force in pushing for nationalized bank, and hence, a central bank.

Same old game, print lot of debt money, then contract. It's thousands of years old. Yet people refuse to learn.

OK. So any historical works that describe how people profited from the panic of '73? That would be a useful post.

 

[gnome]

Quote from drsteph:

OK. So any historical works that describe how people profited from the panic of '73? That would be a useful post.

You mean other than buying stocks after the '74 low?

 

[Mecro]

Quote from drsteph:

OK. So any historical works that describe how people profited from the panic of '73? That would be a useful post.

Those who used leverage dump real assets. Those who are in charge of the contracting money supply buy them up & consolidate.

 

[theboxer]

It's so insidious, that people still labor under the assumption that the government is supposed to be "helping" them, and then when the government or the Fed fail in that regard, they are "incompetent" or "bumbling". Wise up, world: you are being had.

Several hundred years ago, a new historical context emerged: the struggle of people vs. central banks. (But you can also see it as just a new variation of rich vs. poor, which is of course much older). People have forgotten about this fight; maybe the media made us forget. People should stop forgetting.

Take a look at Andrew Jackson's presidency, and at every president who attempted to keep or regain the constitutional right of the people (congress) to coin their own money. They all (with the exception of Jackson) got steamrolled by big money, if I'm not mistaken. Will anyone argue?

 

[drsteph]

Quote from Mecro:

Those who used leverage dump real assets. Those who are in charge of the contracting money supply buy them up & consolidate.

OK. So therefore the goal is to purchase:
1. Real estate at the lows that is income producing
2. Means of real production (industrial plants, farms, factories)

Neither is going to be easy to either recognize or execute due to lack of available borrowing and high value (even when reduced) of these real assets. Furthermore, good luck choosing the industry that's going to be around in 20 years as it is dependent upon not only favorable legislation but societal trends which won't be as easy to define. Furthermore, with such overproduction in housing, and no real population growth, how can purchasing real estate be a slam dunk? (unless you choose the right location with future job growth and people relocating into the area).

Not easy. I know people have written books about this. I just don't know where they are.

 

[Landis82]

Quote from blackjack007:

bernanke is preventing a repeat of the 30's depression. during that time, the fed tightened their monetary policy and increased interest rates, and bernanke believed it turned a recession into a depression.

that's why he's been pouring money into the economy and aggressively lowering rates.

Common knowledge.
Nothing new here.

Monetary policy was highly restrictive due to Federal Reserve Notes being partially backed by gold. When people converted these notes to gold in the panic - - - regulatory restrictions then kicked-in allowing for a reduction in money supply because it was tied to the FRN.

Stupid policy.

 

[Dannazione]

Quote from Mecro:

Stop being so gullible. This crisis was planned for years, it's an execution of a plan.

1873 was a result of the banks playing with money supply, more specifically, Jay Cooke. He was a force in pushing for nationalized bank, and hence, a central bank.

Same old game, print lot of debt money, then contract. It's thousands of years old. Yet people refuse to learn.

people disregard statements like yours as conspiracy theories

their parents didn't give a fuck about them, they're always looking for a father, oh who could it be, the big government, he cares about me, he wants my security, oh sure he does, now go along and play

if I were any government, I would shit all over the lives of the people that I rule over, I would screw them over, I would hand them the hell they deserve, now tell me why wouldn't any other government do the same, oh because they love you, they care about you, oh no you're right, it's because you are so smart you would realize it if they were screwing you over, wouldn't you?!