Why the Present Depression Will Be Deeper than the Great Crash of 1929

Galbraith's conclusions about the causes of the Great Depression point to why the current Depression will be deeper.

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Galbraith concludes: "Had the economy been fundamentally sound in 1929 the effect of the great stock market crash might have been small. But business in 1929 was not sound; on the contrary it was exceedingly fragile. It was vulnerable to the kind of blow it received from Wall Street."

You mean like the evaporation of $12 trillion wealth we've just experienced in the U.S.?

But the present is far more fragile and vulnerable than the U.S. economy of 1929, for the following reasons. In 1955 Galbraith could not possibly have foreseen or anticipated these current conditions:

More signs of what's to come.

I truly believe that the government is stalling for time. Time for what?

They know everything is crumbling and will stop at nothing to lie and keep the sheep in a trance.




[edit on 9-6-2009 by warrenb]

GREAT FIND...

One thing that makes me mad at this present time is that they are calling this the GREAT RECESSION .... ... sometimes i wonder how stupid they think we are... or are we just evloving to see past this word games...

well great find again

PEACE LOVE & ENLIGHTENMENT
InterConnected

We, who have never lived through the Great Depression have no idea how bad things can get. They rationed butter, sugar, gasoline and God only knows what they will be rationing this time around. People used to re-sole there shoes with the rubber from used tires.

If you have any spare funds you might use them to buy a few basics other than food and water. (Sturdy clothes, shoes, soap, toliet paper, etc.)

If your microwave breaks down will you be able to get a replacement?

Can you stock up on firewood? You won't want to be burning that table your Grandmother left you to keep warm. Having extra blankets might be a good idea, too.

Just a few random ideas for facing the nightmare we might well start living shortly..

reply to post by sad_eyed_lady


Our government is making the same mistakes now that started with Hoover and FDR. They started by trying to micromanage the economy from the power industry to the farmers to job creation and it only made our economic problems worse. If you want to read a perfect history of that time read 'The Forgotten Man' by Amity Shlaes. It will open you eyes to exactly what this present administration is doing!

Zindo

reply to post by sad_eyed_lady


About 15 years ago my late grandfather decided to resole his shoes using used tyres as he did not want to buy a new pair as he said they would see him out. However I would not recommend it unless you are desperate, it made such a mess on the lino and left black marks everywhere.

I do agree though that it may be wise to stock up on more than just the basic necessities ie needles and thread, useful tools and things you may think need replacing in the next few years. I think the bad times are just starting and we have a long way to go yet before many people start feeling the effects.

Great find! I agree for many reasons. One of my concerns is how they raised interest rates, and doesnt go well with the cost of living inflation.

I suspect we will see Hyperinfaltion soon. Some may disagree but we are not imune, as Germany was not. It's coming not if but when.