Do you think we will have another Great Depression?
By greatsasuke
@greatsasuke (472)
United States
October 24, 2009 12:28pm CST
As we celebrate (although it is not a celebration) the 1929 Stock Market Crash (Black Thursday)and have recently suffered the worst financial crisis since the crash and the Great Depression, I was wondering if my fellow myLotters have any opinion on the current situation as it compares to the 1929 crash. Do you think we are heading into another depression era? Some economists think so. I recently read that in this case we will see a similar contraction and depression, but this time it will be on a worldwide level. They were saying that if the supply side is left stagnant for too long then when the economy does allow demand to rise, there will be no chance to get back to the level of productivity and prosperity we once new.
As for the market, it doesn't seemed to be too depressed these days and many attribute it to investor experience and intelligence levels, which they say is much higher than in 1929. If there is any indication from the stock market, which usually begins to rise ahead of the economy 6 months in advance, it seems that we should be edging our way out of this crisis soon. Yet, many experts say this is a bear market rally that can not last.
What is your opinion?
1 person likes this
1 response
@tdemex (3540)
• United States
24 Oct 09
Good post! If you would've asked me this last year I would've said this was a good possibility. I really think, despite what others say, that the current Administration has saved us from this! Your right when you sat it's more global and that is also a good factor! As much as I hate to say it, China is all ready in a new growth cycle along with a few others! The doom and gloom experts are wrong, the only thing I'm concerned about is the strength of the dollar! I really believe because of the practices of the past Admin when we pull out of this we will not go back to a middle class like we had before, it has been destroyed along with the previous standard of living, it's a shame! But the rich will still be getting richer and the poor will grow more than ever!
tdemex
tdemex@greatsasuke (472)
• United States
26 Oct 09
I agree with you. China is going to be the new economic powerhouse of this century. The dollar will be weaker than it was, and we are all going to learn a bit of humility once again. Although, I am still a bit of an optimist. This country has been through a lot in its short history and it has always learned, at least for some time, it's mistakes and been able to adapt and overcome. The only difference now is that we will have to share our previous prosperity with other nations. This is not necessarily a bad thing and can really bring the world closer together.
1 person likes this
@tdemex (3540)
• United States
26 Oct 09
I've been installing assembly lines for the auto industry for over 10 years in a bunch of countries! I've seen this coming for the last 3 tears! the past policies of the USA have hurt us real bad they pretty much destroyed half of the middle class and they were our only hope of having a decent standard of living! If your rich you got nothing to worry about but if not you better get used to it! I moved to Mexico where my dollar still keeps me healthy but if I went back to the US I'd have to dial it down a few notches! Keep the faith! tdemex
tdemex