“The Feds cannot print enough money to save the day. We’re going into the worst depression that any living person has ever seen. It’s going to be worse than the Great Depression of 1929.”
Do you realize that Barack Obama recently said that he would not rescind the Bush tax cuts. He said this on ABC, September 7, 2008, IF the economy were in a recession. IF the economy is in RECESSION?! This is worse than a recession! We’re going into the greatest depression and people better beware.
I’ll tell you what I know other people are doing. They are taking their money out of the banks. People with a lot of money are moving it overseas into what they think are safer banks. There’s going to be a day here in the United States that the authorities are going to call a Bank Holiday. AIG is calling for more than $40 billion today. The Feds just bailed out Freddie Mac and Fannie Mac to the tune that could cost taxpayers up to $300 billion or more. Our national debt has been increased to at least $12 TRILLION! The Feds cannot print enough money to save the day.
So, we believe what the government is going to do is call a ‘bank holiday.’ You’re going to hear all those fat mouths out there that were saying that everything was OK, the FDIC was going to insure your money. But, Linda, no one is going to be able to get it out all at once. Just like they did in Argentina and they did it in Brazil when their economies collapsed and their currencies collapsed and their economies were sinking. You’re not going to be able to get all your money out at one time. Our government is going to say, ‘It’s insured. Don’t worry about it, but we need to pause. Take a deep breath.’ Oh, boy, do they love that phrase! ‘Take a deep breath.’
Take a look at this last Saturday’s (September 13, 2008) New York Times. The headlines story on the business page is to just pause and reflect. Don’t panic. Everything is OK. The ship is sinking and the best they can say is, ‘Doesn’t the band sound great!’
All the article is here very interesting:
http://www.earthfiles.com/news.php?ID=1473&category=Environment
http://investment-blog.net/us-1929-great-depression-vs-2008-financial-housing-credit-crisis/
The pathetic part of this situation it is largely self induced and there are definitely strong similarities to the 1920’s which is we are fearing today.
I believe I remember my late father warning about leverage, not only in stocks but purchses of goods. Cars were paid for and driven for years, not leased. Most average houses were modest and functional, no great rooms, theater halls, exercise rooms etc. More odd is the fact that most of this was accomplished with only one family member working.
Many millioaires of the twenties at least manufactured a tangable product, be it cars, steel, coal, railroads. Today the likes of Dick Fuld produce nothing tanagible, create value only for their own companies through share price and have a total lack of disregard for the aftermarket product.
Investors bought packages of products by sharp young market people who had little regard of what might happen later. Traders swaped these products on the trading desks. Yes, buyer beware always, but when the seller has no risk or personal money in the product prior to sale, how objective can he or she be. By and large, this was the twenty something MBA whiz that wrecked the train, Fuld only profited from these young engineers.
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