The Real Great Depression (loans, real estate, credit, debt)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
The Real Great Depression - ChronicleReview.com (http://chronicle.com/temp/reprint.php?id=477k3d8mh2wmtpc4b6h07p4hy9z83x18 - broken link)
There are strikingly similar events from the 'Long Depression' to what is going on today.
(Thanks gwynedd1 for bringing this up, it made me research it!).
Hi sheenie2000,
Thanks. I agree. What really concerns me is that real estate is the hardiest of assets that can coax loans into existence for rather long periods of time. Real estate absorbed the 2000 Internet bubble as if nothing happened. Money rotated into housing and despite the massive de-leveraging that occurred from the Internet bust housing supported money creation and even accelerated it to spark commodity inflation hedges which were also financed creating even more money. Hedge funds in 2006 were in a leverage frenzy. The more inflation the more money was created to leverage into commodities.
Now there is nothing to support money creation, the debt/money engine is as of now dead. Money is created when someone goes in to debt. What exactly will that be to offset equity, housing and commodity deflation? The only option is government debt/money however since few understand that debt must always grow privately or publicly they are likely to clamor for less of it as we have seen not knowing it just tightens the noose. The oligarchs will clean up.
Sigh, what a mess. Washington is talking about all this nonsense like freeing up credit and trying to get credit flowing, but no one of course wants to go into debt. But if we don't go into debt, then we'll just stagnate. And if at the same time people start paying down debt, we'll have even less money in the system.
Do people at Washington like Obama and Geithner really have a clue? Or do they really get it but are made to give us a spiel to confuse us?
You can compare financial crisis and find similarities. Just as you can compare wars. they also have similarities but have alot that are very different including the causes and the methods of fighting them.My mother in Law lived thru the great depression. When i mention what is said by many she says right now this is nothing compared top the great depression;whether it will get that bad i don't know. She also says that the 70's and 80's recessions were just slowdowns in comparison.I lived thru both and what i see this so far is nothing compared to either so far.The inflation in the 70's recession meant that people working or not had to really cut back and not by choice.So i say apples to oranges when i read these things ;they are all more different than similar.But in the age that everything is a conspiracy or government plot;what do you expect.
You can compare financial crisis and find similarities. Just as you can compare wars. they also have similarities but have alot that are very different including the causes and the methods of fighting them.My mother in Law lived thru the great depression. When i mention what is said by many she says right now this is nothing compared top the great depression;whether it will get that bad i don't know. She also says that the 70's and 80's recessions were just slowdowns in comparison.I lived thru both and what i see this so far is nothing compared to either so far.The inflation in the 70's recession meant that people working or not had to really cut back and not by choice.So i say apples to oranges when i read these things ;they are all more different than similar.But in the age that everything is a conspiracy or government plot;what do you expect.
Hi texdav,
With respect to war their are many different causes and changes in technology. However as I have expressed the money supply is expanded and contracted by financial interests in a position to profit from them. This has been done since Roman times. Money changers in the 2nd Jewish temple corned the market on faceless silver coins because those with a Roman image on them were unacceptable. This has been going on for thousands of years. The money supply is expanded and then its contracted. The current fractional reserve system does this by design. Before this, financiers had to go through the trouble to monopolize it. This is nothing new.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
