Bernanke says crisis ‘no comparison’ to Great Depression
Bernanke says crisis ‘no comparison’ to Great Depression. That was the headline on an article at yahoo.com. He stated that there was world wide depression that lasted 12 years was only ended by WWII. I am not an economist but, there seems to be a world wide depression happening now. Japan has been having problems for a while now. At one point the Japanese prime interest rate was 0(zero), zilch, nata, nothing. And yet that did not seem to help them out. The Fed is discussing lower the interest here in the states now. That rate is at 1%. How much lower can that go. Zero right. How about the fact the IMF is freaking out now too. Or the fact that several European countries have bailed out banks just like the U.S. is currently.
He also said that the stock market dropped 90% during the depression. Are we done yet. The stock market is down 40-50% now and seems to be creeping lower. Oil is down from a high of $147 a barrel to $49 a barrel as of today. Today alone the tumble in the market wiped out the gains that happened last week. So again is the market stabilized at around 8000 or not?
Bernake also allude to bank failures. Well how many financial institutes have failed? How many that would have failed were bought out by other banks? How many are on the verge of failure that we have not even heard about yet? How many will take for the administration to acknowledge a depression. Will it take a complete collapse of the economy.
All the lock step politicians are saying that we need bold action to avoid a depression. Do they really think that they can buy their way out of this? How much inflation can we expect if they do buy their way out? In my opinion if you need to make a big purchase do it now. That $500 item, certainly will not be $500 in a year or two. $700 billion dollars or more of currency debasement will catch up will all of us eventually. The more they print the worse it will get and could bring around the very depression(wait we are already there) and collapse which they are trying to avoid.
Again, I am not a economy expert but a truly free market system need to be the order of the day. No matter what. The Dems say the the deregulation of the banking industry got us in to this. Don’t buy in to that. The banking industry is still very heavily regulated. Just because a few regs were removed does not mean that an industry was deregulated. If there was a free market banking system then banks would fail when they made stupid business decisions. Which is the way it should be with any business.
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