US Credit Shrinks At Great Depression Rate Prompting Fears Of Double-Dip Recession

The Telegraph (UK) ^ | 9-14-2009 | Ambrose Evans-Prichard

[blam]

Both bank credit and the M3 money supply in the United States have been contracting at rates comparable to the onset of the Great Depression since early summer, raising fears of a double-dip recession in 2010 and a slide into debt-deflation.

[blam]

"There has been nothing like this in the USA since the 1930s," he said. "The rapid destruction of money balances is madness."

[blam]

Here's a link to the article. Don't know why the original didn't work...probably me, been a long time since I've posted an article.

[dalebert]

but bammer saved the day...

[FlingWingFlyer]

Everybody hold on to your wallets!

[STONEWALLS]

“..... a slide into debt-deflation.”

what exactly is debt-deflation?

[Lurker]

I said this on another thread: Clan Lurker is now free of unsecured debt and our assets are in cash or cash instruments.

I know we may very well miss out on some Market gains, but there's just too much uncertainty for us.

The only debt we're carrying is our mortgage and we're on the 'upside' of that meaning we owe far less than the value of our home.

Something very bad is coming.

[XenaLee]

Amazing that we have to read the truth coming from an already socialized UK, eh?

I hope each and every freakin beer-drinking, leftist, stupid slob that voted for the Obamanation enjoys his or her newfound “freedoms and freebie health care”.

Like for instance, when Big O determines that drinking beer is bad for your health... so taxing it out the wazoo and making it unaffordable for the average citizen (like they did with cigarettes) is the only thing to do. For your own good, and of course....for the cheeldren.

Like communism, only the elites (like Zero) will be able to afford alcohol & cigs.

[LikeLight]

Referring to the debt-purge policy of US Treasury Secretary Andrew Mellon in the early 1930s, he added: "The pressure on banks to de-risk and to de-leverage is the modern version of liquidationism: it is potentially just as dangerous."

Meanwhile, today, Obama scolds Wall Street for risk. He is clueless or intentionally destructive. I'm leaning toward the latter.

[all_mighty_dollar]

I get this at the link but google found a story probably the same?

Sorry
We cannot find the page you are looking for.

* The page may have been moved, updated or deleted.
* Or you may have typed the web address incorrectly.

Please check the address and spelling.

Please also try the following: * Use the A-Z index; * Use the navigation bar above or the list of options below. * If you still encounter problems, then please contact us

==============

the one I found

LINK :Telegraph

[AceMineral]

The Minerals have no debts: house/truck paid and no credit card balances or loans out.

[Rockingham]

The author, Ambrose Evans-Pritchard, is a conservative, and the UK Telegraph is a conservative paper. When Evans-Pritchard was the Telegraph correspondent in the US in the 1990’s, he wrote devastating anti-Clinton news stories and “The Secret Life of Bill Clinton,” one of the best early anti-Clinton books.

[NaughtiusMaximus]

But..But..But the Market is rising!

(Folks, I’m tired of harping on Holiday sales. Suffice to say the MSM will be happy talking the economy with all its might. The town’s on fire, get out the old fiddle.)

[PushinTin]

But, But, they pulled us back from the BRINK!!!

[BILL_C]

"He is clueless or intentionally destructive. I'm leaning toward the latter."

Rush Limbaugh agrees with you, he frequently says Obama is trying to destroy the US economy. It's OBVIOUS, isn't it?

[WashingtonSource]

bump

[rbg81]

what exactly is debt-deflation?

---

I think its when people are too in-debt to buy anything. As a result, prices come down. Frankly, I don’t believe it will happen. However, I do think the Stock Market will come down when economic growth goes nowhere. Too many people are un-employed, under-employed, or just plain tapped out.

[night reader]

The Minerals have no debts: house/truck paid and no credit card balances or loans out.

But what do the Minerals have to live on in the face of a total economic collapse? Any food stored if the Super Market closes? Clothing enough to make through the winter? Means of heating the house if there is no electricity or natural gas?

Just from your economic statement, one can tell you're better prepared to weather the storm than most... but are you REALLY prepared?

[hinckley buzzard]

Obama has no idea what he is doing economically. Like most goobermint trainees he has never taken an economics course and never wanted to know anything about it.

As a statist dictator-in-waiting he doesn't believe economics exists anyway--it is all simply a matter of the central gobbermint dictating what things will be produced, what they will cost, how much labor will be paid for making them, and who will buy them. Simple really. The USSR did kind of mess it up even after 70 years of practice, but hey look at how well the Chinese do--they've got it all figured out by golly.

Obama has seen the future--and it works.

[arkady_renko]

Lurker - or whoever else might want to chime in. If you have paid off unsecured debt with cash, isn’t there a possibility you may not have enough cash in an economic blowout?

My question: If you have $20,000 in unsecured cc debt and then get $20,000 cash through a payout from release from a job, should you payoff the debt with the cash all at once, or keep the cash and continue to make payments on the debt?

I’m assuming a situation where things get bad within the next year.

[GOPJ]

Amazing that we have to read the truth coming from an already socialized UK, eh?

Yeah, it's a little sad...