The Great Depression vs. Today's Economic Crisis [View article]
Great article.
However, I do not agree with point (5). How can America payoff all those foreign held treasuries (approx. 50%)? A devalued US dollar reduces the cost of pay back and increases exports (jobs). What can foreign entities due? Sell back all the bonds at a deep discount? OK
I also do not agree with Accountant. On his first point, what does the FDIC matter this time around? The population has a negative savings rate. As for the dust bowl argument. I am not convinced that was a bigger factor than government policy. We also have to give the current environment a couple of years to develop any additional issues before an equitable comparison can be made.
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Great article.
Jan 01 01:31 am
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All Comments by Hmm?! »The Great Depression vs. Today's Economic Crisis [View article]
However, I do not agree with point (5). How can America payoff all those foreign held treasuries (approx. 50%)? A devalued US dollar reduces the cost of pay back and increases exports (jobs). What can foreign entities due? Sell back all the bonds at a deep discount? OK
I also do not agree with Accountant. On his first point, what does the FDIC matter this time around? The population has a negative savings rate. As for the dust bowl argument. I am not convinced that was a bigger factor than government policy. We also have to give the current environment a couple of years to develop any additional issues before an equitable comparison can be made.