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What is scary is that it seems to be a global thing. Just as in 1929, what happened on Wall Street resonated around the world. I don't really know enough about the history of the causes of the Great Depression to have any real idea of which way the cause-effect link points - i.e., whether the crash was a trigger for worldwide events or a reflection of a global trend. From what I've kept track of with the current situation, the trigger effect seems more likely, but I wouldn't place any bets on it right now. One thing I am pretty sure of is that given the size and impact of the US economy, what happens in the pits in NYC has effects on lives and fortunes around the world. I don't believe we have seen anything yet! Since even those that are waking up to the severity, still refuse to see reality, we are in deep crap. Subprime mortgages didn't cause this, our good paying jobs being gifted to third world countries and foreigners is the true underlying cause. We WERE the world's best customers and once we traded good paying jobs for cheap socks, it started to end. Credit kept the illusion up for half a decade. Now, the tricks are gone. Want to save the world? DEMAND that government shrink, taxes drop and regulations are eased to bring back industry to our shores. Or keep forcing our employers to close their doors and send the jobs to people who cannot afford to buy the products they now produce. Th... I definitely agree with you about good paying jobs being lost Gemfem. But I see the problem as this: Banks encouraged us all to live above our means. College students were definitely recruited for credit cards, and easy credit was available. When people couldn't pay their credit cards off, they were encouraged to do a home equity line of credit. What I'm getting at is that it's a huge pyramid scheme that always topples, and I'm not absolving people of their personal responsibility, but it starts out people use credit for wants and then it turns into using it for needs. I think one of the best way to get the economy going again is to use government bond money for good loan terms in the real estate market. You are absolutely right Debby. But, what most Americans don't realize is that as every American factory closed its doors (and you didn't even here about the majority as individually they were too small to make the news), MILLIONS were plunged from middle class to poverty. In order to keep up with their already committed to obligations (house payment, car, etc), many took the cheap cash the credit companies offered, believing that a comparable job had to be around the corner. After all, we are still be told that "high tech" will replace factory. Guess what? Those jobs are gone too and now many have more debt from college and are still making 25% of their former wages. |
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