Comments on: What Causes a Depression?

By: JMR Alan Greenspan

JMR Alan Greenspan — Tue, 29 Sep 2009 15:51:57 +0000

Despite the danger of sounding too scholar and hermetic, i`ll quote a great philosopher of our times, whose finely crafted phrase captures in great subtlety the intrincacies of modern economics:

“We are freaking doomed!” …where the words freaking and doomed are to be highlighted and underlined for better appreciation of its phrasal importance.

And Harry is, no doubt, Mr. bonner teasing us. No one can actually be that narrowminded.

By: phelps who cant swim

phelps who cant swim — Tue, 29 Sep 2009 14:50:31 +0000

Too much reliance on finance, government and consumer related industries. Finance allows companies to take on too much debt and also puts too much pressure on publicly traded companies and those that are not to maximize profits, which causes damage to the local economy in a variety of ways. Government industries are totally unproductive, wasteful and corrupt taking large amounts of resources away from productive industries putting an enormous strain on local communites and economies that are forced to support them. Necessary and descretionary, of course is not all negative, but an economy that doesn’t produce enough of what is being consumed and the jobs producing this consumption are based in other locals cannot be sustained for long. I watched a World Economic Forum a few years back and a Chinese economist was trying to tell developing countries how to build a sound economy. His advice was to start from within your own country, then figure out what you can export to other economies. A John Hopkins economist abruptly cut him off and advised the reverse. China’s economy grows – ours shrinks. Whose advice would you take?

By: JMR bayou bobby

JMR bayou bobby — Tue, 29 Sep 2009 09:21:02 +0000

Bill, may I call you Bill?

Please stop drinking in the mornings when you are penning your opus.

By: Harry's brother John

Harry's brother John — Tue, 29 Sep 2009 08:47:15 +0000

CommonCents said
Harry, I don’t know what planet you are from. But here on earth all signs point to a long an unprecedented depression.

Must be nice to live in la-la land.
———————-

It is easy for my brother.

He sold all his topped out stocks and is taking the cash and non=perishables to the bunker tucked away in gubmint property in New Mexico.

By: Tracy Thomas

Tracy Thomas — Tue, 29 Sep 2009 03:42:17 +0000

I can imagine that the US will do everything they can do to stay a super power. Since the 1970′s OPEC agreed to price oil in dollars around the world. If the $ continues to lose value, more OPEC countries will follow Iraq’s suit (they switched over to the Euro). Venezuela may be next. Afterall who wants to trade something of value for something that will lose value? Oil is the lifeblood of industrialization and we get it for free. Afterall, we print the very dollars that buys oil. So check out Sept 22nd article from Bloomberg.com. The Fed now talking aout doing reverse repo’s to remove liquidity from banking system – why? To increase value of dollar. This will help stave off the imminent and growing sentiment to move away from the dollar as a world currency. But if they take liquidity out of the banking system, that’s like taking the patient off life support. And then we will see the end game. Great Reflation turns into Depression part 2.

By: Bernardo

Bernardo — Mon, 28 Sep 2009 23:50:17 +0000

It´s impossible that people stare how things come worse, US society will implode if fundamentals don´t turn. We can´t think that society moves like computer models predict, it can´t with economy, less with how people moves, think or act, Beware!!

By: CommonCents

CommonCents — Mon, 28 Sep 2009 23:39:24 +0000

Harry, I don’t know what planet you are from. But here on earth all signs point to a long an unprecedented depression.

Must be nice to live in la-la land.

By: Harry

Harry — Mon, 28 Sep 2009 22:42:40 +0000

Recession: Over. Depression: Only existed and still does for some unknown reason, in your mind and others out there on the fringe.

By: teresa

teresa — Mon, 28 Sep 2009 21:37:17 +0000

The truth is, banks are still hemorrhaging money. Most world’s big banks and financial institutions are broke. They can’t be saved and you are correct there is no way out from it for a long time.

By: Bors

Bors — Mon, 28 Sep 2009 20:52:54 +0000

“Still no sign of the Chinese coming to the rescue in the gold market.” Do you mean that the gold market is going to need rescuing now that it is overbought and its bubble could burst at any moment unless a commie country comes to its rescue? Hmm.