posted on Jul, 13 2006 @ 11:23 PM
I've been with ATS for almost a year, and I believe this might be my 2nd post... however, with that being said.
My parents were survivors of the The Great Depression and so although we had a very good childhood, my parents always tried to emphasize the way
"life had been"... My parents made a decent living, my father in the trades, my mother stayed at home.... We were of middle class however, my
parents were quite frugal...giving us better than they had but making sure savings took precedence to extras.
Now most families have a huge mortgage, 2 cars in their garage, a great tv or 2 and a credit debt that would boggle the mind.... And no savings.
Their kids have cellphones, their own car, an ipod and at least 1, if not 2 $300 gaming systems.... And no savings.
The Great Depression was caused primarily over Credit... The stockbrokers and the Stockholders learned how to purchase stocks without actually having
any money. When the Stocks became worthless you still owed the full amount that you had borrowed... ie: you buy a house on loan valued at $240,000
only to find that the house is only worth 140,000 - not good, hmmm. The general population had done the same....buying, buying... no money in the
bank, just have a great time and spend (Sound familiar???)
Now, we are so very close to experiencing a depression that will far surpass that of our previous generations. Why? The stock market is showing
severe signs of weakness from both a home and global perspective. The value of the $1.00 is showing continued signs of weakness as other countries
are beginning to devalue the dollar. Our trade deficit is at a record high (meaning we owe big time) Our manufacturing jobs have primarily gone
elsewhere (meaning we have become a nation of consumers and not producers, as well as being dependent on other countries for a staggering percentage
of what we consume) by the way this raises our unemployment rates...
So I ask you, how will we survive the next Great Depression???
Farming was a big thing back in the 1930's - how many farms are left today (by the way, that was the only way people were able to eat back then..)
In the great depression, people ate whatever they picked from their garden, whatever they could trade with to the farmer and bought a luxuxy such as
coffee at the grocery store (what would our children do if you put a loaf of bread on the table and said that was dinner?)
People are in debt up to there eyebrows, The housing balloon provided people with houses they normally could not afford, now with interest rates
rising there have become a record number of foreclosures.
A nation who can produce nothing to sell can make no money.
A consumer nation needs to spend money.... but where will we get it???
So, how will we survive the next Great Depression?