The Second Great Depression?

[Whitey5150]

Do you believe that America is in the process of entering a second great depression?

I believe so. With the recession, high gas prices and poor real estate, it seems so.


But what do you think? your opinions are greatly appreciated.

[S.L.I.G]

Yes.

[bushbush]

nope. US is not in the problematic gold standard at the present. Its government is actively putting the lessons from The Great Depression into practice. It will be tough for awhile but it won't get that bad.

[NLegari]

Not exactly the second great depression, but we are in something very similar to the great depression.

[Hunter Makoy]

boys we're already starting to come out of this thing which was already not a 2nd Great Depression to begin with.

[S.L.I.G]

boys we're already starting to come out of this thing which was already not a 2nd Great Depression to begin with.

This assertion founded on what? Did one of the magical unicorns that spew candy whenever they **** tell you that?

Cause its getting worse...

[Hunter Makoy]

This assertion founded on what? Did one of the magical unicorns that spew candy whenever they **** tell you that?

Cause its getting worse...

And this assertion founded on what? The much higher confidence in the market? the Dow having 2 of the best weeks in a row? leading stock anaylists, the market, and the Fed convinced we're starting to come out of it? All areas that still have decline being much lower then in mid-March? Take your pick, or stick with baseless pessimism, its all gravy to me.

BTW love the question, nothing builds better credibility then that gem. :

EDIT: oh wait, and I just saw the OP said higher gas prices, another thing that actually didn't happen much during this "depression". This "depression" has lead to the lowest gas prices in years for the past 8 or so months. The gas price jump in last June was almost completely artificial and based mostly on bad numbers and bad speculation.

[S.L.I.G]

And this assertion founded on what? The much higher confidence in the market? the Dow having 2 of the best weeks in a row? leading stock anaylists and the Fed convinced we're starting to come out of it? All areas that still have decline being much lower then in mid-March? Take your pick, or stick with baseless pessimism, its all gravy to me.

BTW love question, nothing builds better credibility.

You cite the Stock market as a evidence that were out of the bust? We entered a bust because the Stock market was over inflated, how moronic is that? Stock analysts and the Fed have argued there was no problem until we were in the thick of it, and have since then argued that the problem is infinitesimally small, and only a hop and a skip away from fix the entire time- all the while increasing the dollar by over 200% in six months.

Every single chart shows continued decline, and every single person with half a brain realizes; 1) Economic problems aren't even starting to end until we see the adverse effects of Obama printing dollars like theres no tomorrow

2) We ACTUALLY purge the elements of the World economy that are unproductive, or should have never been there in the first place. Until the economy is re-adjusted for the rampant debt, over-speculation, and consumerism, then we are in the SAME position as when we started. Only worse, in fact. Obama say's one thing, and does the exact opposite> "We need to reduce debt and consumerism, and base our economy on strong fundamentals"

Pathetic that people actually buy into it.

[Hunter Makoy]

You cite the Stock market as a evidence that were out of the bust? We entered a bust because the Stock market was over inflated, how moronic is that?

quite frankly, no we didn't.

Stock analysts and the Fed have argued there was no problem until we were in the thick of it, and have since then argued that the problem is infinitesimally small, and only a hop and a skip away from fix the entire time- all the while increasing the dollar by over 200% in six months.

thats because real people, particularly people many have a lot of trust in, don't say there's a big problem until they know there's a big problem. At the beginning it was very isolated to certain sectors of the economy.

Every single chart shows continued decline, and every single person with half a brain realizes; 1) Economic problems aren't even starting to end until we see the adverse effects of Obama printing dollars like theres no tomorrow.


2) We ACTUALLY purge the elements of the World economy that are unproductive, or should have never been there in the first place. Until the economy is re-adjusted for the rampant debt, over-speculation, and consumerism, then we are in the SAME position as when we started. Only worse, in fact. Obama say's one thing, and does the exact opposite> "We need to reduce debt and consumerism, and base our economy on strong fundamentals"

I'm sorry I forgot the option "its all Obama's fault"

Pathetic that people actually buy into it.

Yeah, kinda like buying into single umbrellas like 'consumerism' being the reason for the down turn and not looking at specific facts that cause the actual problems, oh woops.

Anyway, you can keep looking at the growing economy and tell me its shrinking all you want, but the actual evidence at this time is not pointing that way. Go ahead and read up on this, its a pretty simple read on some of the reasons why so many believe we're starting to come out of it.

[Viking Prince]

A down turn in the 1980's emptied factories in the midwest. Doors were locked to never reopen. The term Rust Belt was a significant phrase of the times. We also had a down turn in the 1970's due to Arab anger over western support of Isreal. The effect was great enoungh for the President to appear in a sweater and suggest we turn down the heat and not put up Christmas ornaments. These down turns are all differant with differant causes and solutions. The current downturn is no differant. Like the others, there will be a solution.

[Panzerbear]

it is nowhere near the scope and scale of the great depression. this is merely a deep recession, and you guys are already acting like the world is gonna end tomorrow.

[Viking Prince]

@S.L.I.G.

So what is your basis for your position?

Unemployment? That is a lagging indicator.

Industrial output?

Services output?

I would agree that pricing is not a good indicator in the short run. Asset prices will be shaky for a while. The basics of the economy are quite sound. Housing and financial instruments are already adjusting to the new economic model after their asset bubbles have burst. Employment is having a shake-out and long-term wages will not be as high as in the past for many sectors. Other wage opportunities will be stronger. That is the nature of Schumpeter's Creative Destruction. It is not an indicator of depression.

[Admiral Piett]

I'm personally not convinced its getting better until I actually feel the results. The news and the Feds can shove stuff down our throats about good it is or how bad it is on charts and graphs, but its rather meaningless unless we see and experience what is really happening. They've pretty much already proved their credibility and their ignorance. If I can finally get a decent job opening somewhere, maybe I'll go ahead and give it to them that maybe it is getting better.

[Oldgamer]

No, absolutely. However, Obama's spending of $trillions will delay the correction, just as FDR managed to keep the Depression going until WWII saved the day.

[The spartan]

No, absolutely. However, Obama's spending of $trillions will delay the correction, just as FDR managed to keep the Depression going until WWII saved the day.

That is probably one of the most debated events in US history. It is in no way definitive. Still, FDR is ranked as one of our best presidents (3rd or something) by historians.

[Admiral Piett]

That is probably one of the most debated events in US history. It is in no way definitive. Still, FDR is ranked as one of our best presidents (3rd or something) by historians.

Because of his leadership in WWII chiefly. He's not near as known for his performance in the Great Depression, and the issue of the Supreme Court Justices.

[B5C]

That is probably one of the most debated events in US history. It is in no way definitive. Still, FDR is ranked as one of our best presidents (3rd or something) by historians.

He was ranked high for being a good War President and not an economy president. The only president who got top marks for economy was Kennedy, Reagan, and Clinton.

[The spartan]

He was ranked high for being a good War President and not an economy president. The only president who got top marks for economy was Kennedy, Reagan, and Clinton.

True true, I was just pointing out the fact that he wasn't a phail president. I also pointed out that many people still debate on whether FDRs actions helped or slowed down the economy's recovery.

[BNS]

The second great depression, nah. The government isn't messing up that bad this time, yet.

No, absolutely. However, Obama's spending of $trillions will delay the correction, just as FDR managed to keep the Depression going until WWII saved the day.

So are you suggesting he should be spending more?

[Oldgamer]

The second great depression, nah. The government isn't messing up that bad this time, yet.

So are you suggesting he should be spending more?

No. Spending should be brought down to a level equal to or lower than government income. It can be done. All you have to do is destroy several government departments and shrink the size of the federal government. Then, you don't need all that money.