[Semi Civil Servant]

Eventually, the GSE money pumps will run out of suckers. A Fannie Mae implosion would simultaneously compromise the bond, stock and real estate markets.

In the ultimate nightmare scenario, there is no safety. Gold was confiscated by FDR. The value of cash can be wiped out in weeks if hyperinflation kicks in. Bonds default. Stocks crash. Businesses go under. Housing prices (in general) dropped sharply during the Depression. Commercial real estate investors seem to pop in and out of bankruptcy every other year.

But, bottom line, if I picked something to own in the nightmare scenario, my first choice would be a fertile farm in a hidden valley. My second choice would be a mortgage free home.

We are in a dangerous time. I'm not sure if we could survive something like the Great Depression today. In the 1930's, most of the country was on the same page from a moral, religious, and cultural viewpoint. And we almost didn't survive then. I hope to never see a simultaneous collapse of stocks, bonds, real estate, and (I would guess) everything else. It wouldn't be pretty.

[Soren]

I read something recently which I haven't been able to confirm. In 1929, just 4% of households were in the market. Anybody know if that's true? (versus around 50% today). Also, 30% of the population was in agriculture verus 3% today. I saw someone complaining on a board that we are in a depression. An oldtimer responded that this is no depression (yet); a depression is when you go dig up dandelions in your front yard for food.