Hey guys I have been wondering more and more after reading about the events in the 30s around the world if by chance we could possibly be heading in teh same direction. Clearly there is at least a another recession at the least but do any of you guys think it could get as bad as the 30s? I would love to hear your thoughts about this subject.
2007-09-23 11:39:19 · 3 answers · asked by Anonymous in Social Science ➔ Economics
I don't think so... A major factor in the depression was public fear. People inudated banlks for their money and the banks closed because they didn't carry the full amount deposited in the bank. Also, huge portions of stock were being held on margin and when the market dropped and the margin calls weren't met, poof! The money disappeared.
While I do agree that there are similarities between what happened in the 20s-30s with the stock market and the current housing situation, the devaluation of property sucks (as a multiple property owner) but the property will still exist. Unlike the stocks which just disappeared.
2007-09-23 11:53:33 · answer #1 · answered by Robb 5 · 0⤊ 0⤋
I think it already encompasses "all horizons" being GLOBAL. The IT revolution is a new volatility that can conflagrate in virtually a "moment"
The big and known factor is the soaring dependence on and fast depletion of oil This wonderfully fluid, mobile and storable energy source has afforded grandiose planning ..
...pull the plug and the commuting "labor" will be loaded with unimaginable knoc -on disintegration... A rigshaw commute is unimaginable . Now the U.S., said to be the world powerhouse, is prey to the outsourcing of profitable chain of wealth from manufacturing. The tax revenues .. meaning social cohesioin supports is fast draining. AND so are vital water sources .. we havent heard much for a long time about the "Litani River"... just one name to identify a world-wide list of such touch points. Am I a Jonah? I so hope I am well the Atabaska sands might help greenhouse us out of existence. I'm going back to praying. .
2007-09-23 19:45:37 · answer #2 · answered by boofuswoolie 7 · 0⤊ 0⤋
Not likely. Back in 1930s, policymakers and their advisors did not understand the economy they were trying to manage. As a result, the U.S. implemented contractionary policies (both fiscal and monetary) in the aftermath of the 1929 recession, which greatly contributed to it becoming a depression. Nobody really knew how detrimental those policies were until J.M. Keynes published "The General Theory..." in 1937.
2007-09-23 20:08:31 · answer #3 · answered by NC 7 · 0⤊ 0⤋