nova

2009 Depression Will Be Nothing Like 1929

seldon wrote:

"> in 1929 the US was the biggest creditor in the world.
Today he US is the biggest debtor.

> in 1929, the depression was deflationary. However this depression will be inflationary, but will not keep up with inflation and the dollar will lose whatever is left of their purchasing power."

I agree with the above. However, we may expect to see differences between the "old" Great Depression and the coming one: the "new" will bring a civil unrest.

PS
It appears to me that the coming events will be somewhat similar to the events that took place in Russia 20 years ago:
- A very substantial decline in US overal standards of living
- Democratic institutions will be the primary victims
- Looting of America will be on a grand scale with runaway corruption

U.S. Rejects Nationalization of Citi and BAC

For all practical purposes all major US banks are nationalized: without government money and/or guaranties they will not last a week or two.

Pumping more money into failed banks with totally incompetent and corrupt management will result in more fraud and more looting of taxpayers money.

About Obama plan: it throws $3T+ of taxpayers money on welfare for no-good individuals and no-good state and local governments. This is a total waste.

Government must
- take its losses
- take over no-good/failed banks and dispose them into private hands capable of successfully running financial institutions
- invest in interprises capable of surviving and prosper
- big financial banks/institutions must be broken in to small ones unable to create future "systemic risks"