Welcome to the second great depression.

http://depression2.tv/d2/node/42

   

Personally, I think it's a good thing for society in general for our paper-tiger economies to collapse.

People will focus less on buying crap for personal gratification and will focus more on building the relationships they'll need in order to weather the storms of a downturned economy.

The fall of the dollar will bring about the fall of the Chinese economy and, with it, the fall of the authoritarian state.

The sum of this will be nations that are actually strong and not just building on money ginned up by the international bankers.

   

People will focus less on buying crap for personal gratification and will focus more on building the relationships they'll need in order to weather the storms of a downturned economy.

Traditionally during the depressions there is a massive shift to either the extreme right or left. Family units may be a little more strengthened but there is a corresponding social cost that negatively outweighs the benefits.




I believe China's economy is a little less dependent on the US then you might believe. However, if the Chinese economy went through a depression I believe it would strengthen an authoritative state rather weaken or bring about its decline, especially in a country like China that already has the institutions and laws in place and don't require a revolution to get to that point.



Nobody knows exactly what causes a depression but we certainly know what exasperates one. In the last depression a lot of the indicators were good in that the stock market had essentially recovered by 1930, government spending and more then doubled and there was plenty of money in the banking system. But the Smoot Hawley Tariff Act of 1930 made it a lot harder for countries to trade with the US and when that happened, their economies nose dived and exasperated the situation by not being able to buy US goods.

Currently Democrats, traditionally very protectionist, are pontificating extremes like the future of NAFTA. It was Democrat government that helped to magnify the last depression globally and hopefully that does not happen again.

On another note, I have no idea why any Canadian would want to see a Democrat government in the US since it will have a corresponding negative impact to the economy when they start insisting that jobs in Ontario and Quebec belong in Ohio and begin changing the laws to ensure that reality.

   

Why the israeli flag?

   

'cuz they kick ass. You have one cheek lower than the other that needs adjusting?

$2.00 a share.....they were bought for next to nothing. We need to start producing for domestic consumption, rather than rely on foreign imports. That will help soften the blow.........IF it falls.

   

What does it mean for a Canadian working in Taiwan?

   

The economy will not "collapse." We are entering a recession, and we will recover from it, though it is likely to last longer than most expect.

   

In a recession, the states have to redistribute welfare money widely, right now only Wall Street is on welfare.

   

I doubt the fall of the dollar will do that, since China saw this coming ten miles away and has been dumping the dollar for Euros for a while now.



I also doubt this. This is the exact same problem the western world faced at the end of the 1920's, except that now our currency isn't backed by something that exists anymore, but rather by something that is purposely absent, and economists seem pretty bent on the idea that the current model is correct and will not fail.

It really bothers me that every time I see economists talking theory, they throw in one little clause that contradicts everything else they've said but somehow manage to lie to themself about it enough to say it with a straight face.

   

So far nothing.....markets have always been volatile here and the problem currently facing the banks in the West is almost cyclical here. The banks are all rife with bad debt.

   

Come back in Canada then.

   

bears stearns just posted almost 3 dollar dividend lol i wonder if the guy who payed 2 dollars a share gets the 3 dollar dividend. A free company and money to boot

   

http://www.reuters.com/article/ousiv/id ... 0520080320

"For instance, they -- and Washington lawmakers -- want answers on how the deal was arranged, and gained government approval and financing, all in a few hours, and seemingly without alternative bidders being canvassed.

They also have a host of questions about the role of the Federal Reserve and the Treasury Department in engineering the emergency deal.

So far, some crucial details remain murky."

   

i watched it unfold on the weekend seems they felt only jp morgan could afford to take over bear stearns and a few other companies opted out. Also the markets were about to open and the feds felt if some thing wasnt done right away the whole world economy would collapse. Bear stearns had a run on the bank and coulnt cover the short fall. ( every see the old movie Its a wonderful life). well jp morgons jamie diamond made a deal of the century because everyone was panicing and the clock was ticking with 3 seconds left in the game. ( this is what was posted at the time, Maybe true maybe not just what i read)

   

More than ever we live in an economic world where market players, whatever their behaviors, are seen by public authority as "too big to fail".