Economic experts are correct in calling it a "correction." We can mostly agree that the global meltdown was pre-planned but even if it wasn't, it will occur on its own sooner or later, anyway. The true wealth of the world is now showing. It has been CORRECTED! Bottomline, many people in the world have no choice but to either work harder, think harder, save more, or return to the Stone Age.

There are benefits to this also. Some of them are:

Return to old values

More attractive people as fatasses will have to move more and eat less crap

Some immigrants will be going home (being mixed race myself, I'm not averse to immigration. But when a foreign culture threatens to outnumber that of the host's, then I'm glad this meltdown happened.)

Stronger local community (see return to old values)

Decrease in pollution

Fewer TV shows and movies (I don't have time to watch them all, anyway)

Spoiled kids and their arrogant parents will be humbled (oh yeah!)

Minimizes the never-ending releasing of new models of cellphones and electronics

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Add your own global meltdown benefits (or disadvantages)

I think these words will come back to haunt you fairly soon.

This is a lot of things, but it is far more than a correction.

Planned ? That I can't answer one way or the other, but we will see a Depression before this is done. I wish I was wrong, in that during the first depression people were more self reliant. They had gardens, knew how to fix their own belongings if they broke, etc.

Another problem is the USA is no longer an industrial economy, it is now a service sector economy. When people quit spending money, or don't have money to spend, things can't be fixed. We will have to go back to back breaking work in order to get our house in order. That will be good for the USA but how long will it take? I don't know.

The one part of your post I did agree with is the spoiled kids and cell phone updates. Now that will be refreshing, but the price we will pay for that I am afraid will be far greater than we were willing to spend.

For one thing I don't live in the US. I live in a third world country. We eat hardship for breakfast.

Ever since the Iraq War, the greed of the American pharmaceutical industry, the stupidity in the US all in the name of "political correctness", and the blind nationalism (mainly by the hicks), I've longed for something like this to happen.

I am a patriotic American veteran, and the things that you see that are screwed are all true and will be eating hardship for breakfast and living in a third world country. You would be shocked to see how 3rd world some parts of the U.S. have been for decades, and how many others live like Monarchs in royal splendor.....Brother, can you spare a dime?

You won't believe how some parts of this sh!ithole (Philippines) are first world complete with Mercedez Benzes and BMWs at every turn along with white hispanic families shopping at Louis Vuitton stores in 1 km. long malls.

In my business we say there are two types of "corrections".

1) A haircut

2) A large bowel movement.

is 40% a crash? or is that the 80%, or for it to be a 'crash' does it have to be in one day?

I have a better word for our current situation, but not one I could post

40% is considered I suppose as a "Economic slow down" or the beginning of prolonged stagnation or deflation of the economy.

Since it took 1 yr to reach -40% no, it is not a crash.

40% in one day would be considered a "black what ever day it happens to be" .. however there are tools in place that prevent that from happening.

1929 the markets collapsed 80-90%, but it was not in one day, it took several weeks, and even after Black Tuesday it took a few months to reach the bottom..

As you see, every situation is different, which is why Bernake refuses to call this a Recession, because for all intent and purposes, we are in a Recession whether we are "technically" or not.. it is regardless at this point in time.

Originally posted by Rockpuck
1929 the markets collapsed 80-90%, but it was not in one day, it took several weeks, and even after Black Tuesday it took a few months to reach the bottom..

The first collapse happened in 1929. In 1930 the market regained some of what it had lost. 1931 was a collapse, 1932 was a collapse. And it took until the first part of 1933 to reach the bottom.

I would say that a 40% decline is a good start to a 1933 total collapse and a complete correction.

[edit on 23-10-2008 by In nothing we trust]

Originally posted by Rockpuck
1929 the markets collapsed 80-90%, but it was not in one day, it took several weeks, and even after Black Tuesday it took a few months to reach the bottom.i

Weeks/Months?

Sorry pal, it took 3 YEARS before it bottomed.

You need a history lesson here.

JK

[edit on 24-10-2008 by leo123]

It will be a long time before we see beyond the clouds. Why? Because if the world becomes confident again, then oil and commodities will rise again. Then most people will have a hard time paying again. Then there will be another crisis again. Then the markets drop again...

Only something drastic will change all this...Pray it ain't real bad...