Is the United States heading for another Great Depression?

Answer 1

I'm fairly well versed in economics and my considered answer is: I dunno.

There are many ominous economic signs and a lot of the numbers look pretty bad. I think a large number of economic writers are underestimating our potential problems.

But, I don't think we're looking at another Great Depression. A recession? Almost certainly. A really bad recession? Probably.

I hope I'm wrong.

Answer 2

High potential for it. If you understand the mechanical details behind the original Great Depression (i.e., the actual science behind the stock market crash of '29), you can see how we are posturing for a similar event, only this time it would center around the prevalence of large mortgages rather than stock.

The stock market crash was the result of the prevalence of investors utilizing "24-hour-call loans". For years, the stock market had done nothing but go up, so people used no discretion in their investing. It became popular to borrow money to invest. They used easily-accessible loans called 24-hour-call loans that had a stipulation that at any time the loan could be called in and the borrower would have 24 hours to pay the balance in full. Well, on the same day in 1929, these calls were placed accross America, and all of the sudden, millions of investors were scrambling to liquidate the only asset that could get them the money quick enough- their stock. So on the same day, millions of investors are offloading their stock, so volume is through the roof. Demand fell through the floor because nobody wanted to buy- they were all trying to sell. Therefore, the value of the stocks plummeted, and people lost everything because they couldn't get the money to pay the 24-hour-call loan because they couldn't sell their stock because everyone was trying to sell, etc., etc., etc.

Answer 3

Honey, we are especially plenty each and every of how there. Pundits use the be conscious "recession" with the intention to no longer panic the customary public. via the tip of this year, until some miracle happens, issues must be terrible. persons are dropping their properties in checklist numbers (no longer that i think for them, they have been given their very own grasping, spoiled selves into this via getting rid of loans that have been impossible to pay lower back and that they might desire to have favourite that--) surprising now food fee is increasing daily, gas is only laughable, and no person is paying for anyplace using fact they can't pay their mortgages no longer to show subject approximately no count number if junior has a clean cranium shirt. or maybe the stupid extra tax rebate/refund won't even help one kinfolk using fact it rather is $six hundred no longer even a million/2 of people'S loan!! they are able to't even make a house charge with that pittance. All they may be able to do with it is make a credit card charge (lower back, their very own fault) in the event that they have been able to consolidate their costs. If no longer that, possibly they might desire to purchase food or gas and circulate out right into a low-lease condominium or living affiliation. businesses are nonetheless laying off people via the tens of thousands and thousands and no artwork sector is risk-free and take care of any extra. If we make it to 2009, possibly, possibly we are able to pull ourselves out of this.

Answer 4

America's ignorance and reluctance to solve problems overseas before they grow bigger then we can handle is going to lead to a two-front World War...

and a war, no matter how large, for some reason never hurts America's economy.

Answer 5

they thought the same thing in 1987. We have safe guards to ensure that our stock market cannot do what it did in 29.

Answer 6

No, but the housing market is really gonna take a hit.

Answer 7

according to liberals we've been in an economic depression since the day clinton left office and we will continue to be in one until the day a liberal takes office again.

Answer 8

no.