Posted on 04/18/2008 11:53:31 AM PDT by OESY
...The suggestion behind such talk... is that the slowdown is like the Great Depression of the 1930s. You almost expect Senators Obama and Clinton to repeat the lines from President Roosevelt’s inaugural address of 75 years ago: “The only thing we have to fear is fear itself.”
The analogy is absurd.... So far, the Dow has declined about 12% from its record high of last fall. In the Depression, it dropped more than 80%. Unemployment is about 5%. In the Depression it was 25%.
Maybe 2% of mortgages are in trouble, and abandoned homes line some parts of Cleveland Heights.... Today, one big bank has collapsed. In 1931, 1,400 banks collapsed....
The most important reason for the current mood is demography.... Anyone who graduated college after that early 1980s’ snap hasn’t seen the Dow do much but go up....
In this election year, both parties are using the slump as an argument to gain votes — the Democrats are offering a New New Deal, and Republican President Bush is offering New Deal Lite in his stimulus package.
By writing stimulus programs now, the federal government is wasting firepower it would need in a real bust — such as when, say, unemployment hits the levels of the early 1980s. By expanding Fannie Mae or Freddie Mac now, a move politicians seem unable to resist, we are inviting institutionally caused stagnation like Japan’s.
Talk enough about people losing their homes, and Washington will pass a law that “encourages”— or forces— banks to forgive principal on some mortgages. Banks will take the lesson and restrict credit later.
In other words, the Depression image is one America simply can’t afford to luxuriate in. Doing so takes away time from devising policies that would really make the economy more competitive....
(Excerpt) Read more at nysun.com ...
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
Oil $115
Gas $3.44 East Coast
I swear it would ALMOST be worth having one of the dims elected just so I don’t have to hear about how doomed we all are every time I turn on the tv.
But I’d rather have bad news with McCain than fake “good” news with Osama or Hitlery.
Here’s a suggestion for you, don’t turn on your TV!
Next time the lying duo of Clinton and Obama say this is the worst economy since the Great Depression, someone needs to remind them of Jimmah Carter’s disastrous 20% inflation and 7.5% unemployment rate...the famous “misery index” that he invented rose from 13% when he became President to 27% during his presidency. The GOP definitely needs a Truth Squad to follow the Dem candidate around the country as they lie their way through the coming campaign for President.
What cost $3.55 in 2007 would cost $1.43 in 1981.
Paid 1.439 in 1981.
It's not like we haven't been here before.
http://www.westegg.com/inflation/
We suffer fromm Hypochondria Economicus, a disease in which all changes in the economy are regarded as life threatening.
Much like Global Warming. Actually, exactly like Global Warming.
Doesn’t it require a measurable drop in the gross domestic product (GDP) over TWO quarters to even qualify for a RECESSION?!?
Depression?
A$@ politicritters!!!!
What is not being taught is that this is still the Great Depression.
I did that once to a dem supporter...and he turned around and claimed that happened because of people who opposed Carter. He even went on to say Carter was a great president, even better than Ronald Reagan (who he said only won because of a Hollywood smear campaign).
Dems...what can you do with them?
Obama probably will, given his penchant for pilfering previously delivered lines.
Gad, talk about an empty suit! There's nothing original about him.
just got back from Disney World. The resort as well as each of the 4 parks were wall-to-wall with families dropping $500 a day minimum on a vacation. Probably closer to $750 a day when you include the airfare. Recession my a$$.
Why do you say that? If that is true, then could we still be in the aftermath of the Tulip Mania of of 1637?
FedGov intruded on the Great Depression with this and that program and all that is still in place in one form or another, including spending what we don't have at the Federal level. It's all still there and more every year. What would happen if FedGov went back to what was in '29? Golden Age of Hoover?
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