Is This a Replay of 1929?

SOB this is just like the 70s NO this isn't a depression but thanks to the government we get stagflation and prolonged recessions thanks alot Paulson, Bernanke, and Bush

And no, this is not a replay of'29: This time, instead of a general leveling, the attendant financial upheavals have been rigged to produce a permanent Baronial Class with massive fiscal advantages in a severe economic downturn.

The result? The long-awaited, much-slavered-over Peonage Society so favored by the conquistador Spanish in the (then) New World. What could be better than peasants tugging their forelocks whenever you stroll past?

The Bush Presidency, the Obama and McCain candidacies, the ongoing Iraq War swindle and "bail-out" scam -- all these and many other examples all illustrate The Final Failure of Social Promotion. In the Paul Newman film "Harper", he makes a comment about 'cream and bastards' rising to the top -- but under the prevailing social, educational, and political philosophies of the last quarter century, we've made sure that the cream don't rise no more ... only the bastards.

An underlying theme of the bailout is that now people can borrow money again and juice up the economy. It is not necessarily true that many will want to borrow money in such uncertain times. Japan, in recent years, reduced bank rates to zero per cent in an effort to stimulate the economy, and guess what. No one borrowed it.

..........................Lets just hope that our Economy makes a rebound and that the government wakes up to the fact that we can not let the Corporations do as they damn well please all the time and that we create some kind of equity with these CEO's and other Top Corporate Executives pay scale and the rest of America. The public can see what has been going on and that we need Real Change and better balance in what people are earning in
the lives of all Americans.

Immediately after the election, whomever wins, he must, without failure, begin a roundup of the miscreants that created this disaster of unfettered, deregulated and criminal capitalism. I am a super strong supporter of inventing in industry and technology, now retired and I cannot verbalize how I feel about this event. Never in mankinds history have we seen a catastrophe such as this (bigger than Crash of '29 due to dollar size) and we must make certain we assess blame, bring charges and justice to the marketplace. We should not omit the main street predators, bundlers, raters, politicians and justice department people who let this happen.

I concur, this is a bailout of the Fed.

The parallels here to the Great Depression are certainly intriguing, and you are right that the differences are noteworthy. However, I think its an oversimplification to say that Bernanke, as a student of the Depression, understands the problem. While I'm not a professional economist, I would argue that his thesis - which I understand was that the Great Depression could have been prevented by the Fed injecting more money into the economy- has just been shown to be incorrect. The Fed has tried extending huge loans to the banks, but it hit a limit. The market realized that the banks were being overleveraged with loans. The hedge funds paniced about the brokerages chances of survival, and then deposit bank investors began to panic.

Bernanke must now realize that more Fed loans to the banks only exacerbate the problem, something his thesis didnt account for. His new solution is to have the government remove some of the bank debts. Whether that will work is in doubt. I am sceptcial that any money will "trickle down" to the general economy from this bailout

I concur, this is a bailout of the Fed.

The parallels here to the Great Depression are certainly intriguing, and you are right that the differences are noteworthy. However, I think its an oversimplification to say that Bernanke, as a student of the Depression, understands the problem. While I'm not a professional economist, I would argue that his thesis - which I understand was that the Great Depression could have been prevented by the Fed injecting more money into the economy- has just been shown to be incorrect. The Fed has tried extending huge loans to the banks, but it hit a limit. The market realized that the banks were being overleveraged with loans. The hedge funds paniced about the brokerages chances of survival, and then deposit bank investors began to panic.

Bernanke must now realize that more Fed loans to the banks only exacerbate the problem, something his thesis didnt account for. His new solution is to have the government remove some of the bank debts. Whether that will work is in doubt. I am sceptcial that any money will "trickle down" to the general economy from this bailout

Hoover tried two bailouts but didn't solve the depression problem only slowing it down but it returned with a vengeance. What we do have is government insurance and immediate government action. What will happen is recession as it happened in Reagan's first term and big stock market "corrections"

What no one mentions is that President Hoover tried a similar bailout remedy 2x but managed a short term slow down.

johnqu@aol.com

Although it may be true that the economy will not be as bad as the "Great Depression," of 1929, I think it will end in a depression. Why? Because there seems to be no real leadership in getting jobs creation in the economy. There's no research and development, very little being spent on infrastructure, and too much money being spent on overseas war ventures, many of which take money out of the country rather than keeping it in the economy.

Where's John Dillinger when you really need him?

since they ( Financial Community ) broke every proven lending formula, that cause this mess, why not break the no no of them all. " Don't go against the market " when it wants to go up, it will, when it wants to go down it will, that trillion $ Emporia Bush threw into the daily raging river of money ( the stock market) is a drop in the bucket, that will be slowed up, disappears. stolen, crooked off.

You may be interested to see just how deeply Barney Frank is involved in this.
http://www.foxnews.com/printer_friendly_story/0,3566,432501,00.html

The big diffence beween now and 29 is that they were going from horse and plows to tractors finally into the age of technolgy which was changing peoples life more than the market place. before 29 bread was bought as an unsliced loaf and afterwards as sliced to give only one example. People lifestyle was being force apart by the market place because of change to a modern age of wheel and power in the home and business. they bet on wall street to finance the good times that were coming faster than most could handle. we are well into the computer age and people who would not admit that they signed loans they could pay for and wall street fell for the complete package and bet that they could make big bucks off the foolish on the bottom of the ladder

Rumour has it that almost all of the bailout money will go to foreign investors and fill the pockets of some big wall street execs. Nice to know we are putting a million a month in some of these guys pockets.

Enjoy Christmas