reply to post by Dbriefed
The thing is, there may not be any "right things" that they can do to avoid a Depression. This correction was supposed
to come back in 2001,
with the dot-com bubble-burst. Alan Greenspan had spent 40 years preparing for it, based on the Kondratieff-Wave hypothesis (Greenspan was a student
of Joseph Schumpeter, who regarded the Kondratieff Wave as the most important thing to understand in economics). Greenspan had hoped to be Federal
Reserve Chairman when Kondratieff-Winter (K-Winter = Depression) hit, because he had the hypothesis that he could avoid K-Winter (Depression) by
increasing the money supply and reducing interest rates to near zero, but he also knew that if he was wrong, it would inevitably come back to
K-Winter, only much worse -- it would make the Great Depression look like a "Sunday-school picnic."
This brings us up to Today -- and it's worth noting that Greenspan was replaced by Ben Bernanke, one of the leading experts on the Great Depression
-- and our current Depression, caused by the multi-Trillion dollar credit bubble that is now bursting, in it's various forms. In September,
Paulson/Bernanke told Bush that it there "could be a Depression worse than the Great Depression." Greenspan, who thought he had avoided K-Winter,
stated that he was in "shocked disbelief."
So, Obama wins the election and the next day they tell him what the deal is. Now the Administration is doing everything
in their power to try
to miraculously re-inflate the bubble for a second time around -- at least until they can all get out of office and they can let the next chump take
the fall when K-Winter comes back around, bigger and badder, refusing to be denied. When K-Winter hits, the best thing that a President can do is just
not be the sitting President at the time.
At least, that's the Kondratieff/Schumpeter view of things, and if this is accurate, then there's probably nothing that we can do to avoid it -- and
if we do, it's only going to be worse the next time around. So let's hope it's wrong (even though it looks pretty right, and Schumpeter looks
pretty accurate) because otherwise, we're going into a horrible economic contraction that's going to suck very bad for a couple of decades, and the
only thing that can save us is a major technological breakthrough on par with the discovery of fire or the invention of the wheel.
Too bad for us.
[edit on 19-4-2009 by theWCH]