Anybody have a parent or grandparent who loved through the Great Depression?
They bought only what they needed and kept it until it wore out. They treated debt like cholera.
Well folks, this is our great depression. The Fed’s can lower rates and deploy stimulus all they want. People will be fiscally cautious from a personal perspective for at least a generation to come.
That’s not to say the economy won’t recovery but it will make the recovery a very gradual, long drawn-out affair.
Remember that the next time a politician on either side of the aisle says he has a plan to revive the economy on a dime. Ain’t gonna happen.
Written by Jamie Coleman