The Next Great Economic Depression
I am no economist so I cannot speak with authority regarding our current economic situation. Instead I speak as a common man on the street, looking and observing, and what I have seen going on since 911 has caused me concern and has alarmed me increasingly as each day and each new event unfolds.
What I am doing here is merely pointing people to the sources that they can utilize to get a more correct picture of what is going on and make their own preparations.
At the outset I say don’t count on the government to provide you with the correct information. They have a monetary stake in this and will only provide you with fudged figures.
The downward spiral is already in motion and has been since 911 and probably before that.
As I said I give forth these observations as a common man of the street using history as a guide.
Below are a series of links to articles from authoritative economist who can better explain what is coming. And don’t think that this is only a national matter, it is one of global significance that all should be concerned with.
Just to sort of clear things up a bit I hunted around for some clear definition of the words recession and depression. I found it at The Wandering Economist . As he points out not everyone agrees with the definition but it is a good start. Check out his website here.
Hunterseeker.
The Wandering Economist :
The technical definition of a Recession is quite simple, “Negative growth of the Gross Domestic Product of a country for a period of 2 quarters (6 months)”. While not everyone agrees with this definition (for very good reasons) it is a generally acceptable baseline. A Depression is simple an extended Recession that enters a second full year.
As I said at the beginning, I am no economist just a plain man on the street, observing and providing links to more informed sources. I would strongly suggest that anyone reading these links should contact their financial adviser before making any financial moves and bare in mind that banks insure up to $100,000 and no more. Those who are above this limit should think seriously about splitting their money in 2 or more banks. Additionally, these links are provided for INFORMATIONAL PURPOSES ONLY and are NOT MEANT to provide investment advice to anyone. For investment advice, please consult with your professional financial planner.
For those who understand French you might want to go here: http://www.leap2020.eu/
What other Blogs are saying:
The Coming Economic Depression
Green Health. Org UK
The Big End of the American Economy?
Salon.com
How Would We Behave in a Great Depression?
The Current Economic Depression
Articles:
Economic depression in America: Evidence of a withering economy is everywhere
The imperfectparent.com
Economic Depression
Great Depression
Update: July 24, 2008
Federal Minimum wage went up today July 24, 2008 to $6.55 = $262.00 per 40 hour week , $13,624.00 per year (52 weeks ). Great! That means that for a family of 2 they are still $376.00 BELOW the poverty line. You can go here for details.
Unemployment jobless claims jumped to 400,000
Update: July 22, 2008
Beware the Unions and HMO’s
I recently got an email from a relative living in New York who informed me that the union at her job has now changed the eligibility after retirement, no doubt to save themselves money while restricting where an individual can live. According to the information I received the particular union will no longer cover medical benefits for those members who choose to live outside of the tri-state area. It use to be you could live in the tri-state area and receive coverage from them but now you must live in the 5 boroughs in order to have them cover most of the benefits.
This means that if you move out of New York’s five boroughs to try and save money on various bills and you are a member of this union you are screwed because they will no longer cover certain benefits. You would have to get additional insurance ( spend more money ). So if you work in New York I would strongly advise that you check with your union and HMO prior to moving out of state to save on grocery, gas, rent, etc., etc.
I have no doubt that these tactics are taking place in many other states as the unions and HMO’s conduct their back room tactics to squeeze as much money from their members while cutting back on benefits.
I don’t have a name for the union involved in this case, I can only say the relative works for a hospital in Manhattan. I guess there is some sort of irony in that!
I would strongly recommend that individuals cut back or eliminate those credit cards that have become a curse in these times. They tend to create an erosion of your future money before you even see it. I heard on the news ( CNN ) of an individual who owns a gas station and offer’s discounts on his gas sales if you pay cash. He saves by not having to pay the credit card fee’s and the drivers save with cheaper gas.
As for insurance I say “ Buyer Beware ”. I recall the horror stories I heard when I was young of how there were people who spent years making insurance payments only to find out that the insurance companies found a way to screw policy holders of benefits when the time to pay out arrived. No doubt there are many Katrina survivors who will attest to this in our current times.
I would also beware of the alarming trend that is taking place where the lure of free gas is being used by advertisers to get you to sign on the dotted line. Doing so in these times can be the start of an economic catastrophe. The last thing anyone needs at this right now is to sign away 3 to 5 years or more of future income!
Somehow the old concepts of our forefathers for thrift, economy and restraint seemed to have been chucked out the window in favor of spending money we don’t yet have and thereby making us slaves for years to jobs we hate to begin with! The excuse is always the same, “ If I don’t do it this way I will never have it!”. It seems to me that desire is the demon that needs to be conquered. We have become a society desirous of all things beyond our economic capacities and we pay the price! Our forefathers would be ashamed of us for our lack of economic restraint.
As for the unions, Beware! These are perilous economic times quickly approaching verbatim comparison with the period after 1929, the Last Great Economic Depression.
Hunterseeker
Update: July 16, 2008
Update July 15, 2008
If you are looking for the FDIC list 90 banks at risk forget it! They are keeping the list secret. The list I was able to obtain is from Research Associates of America. Obviously the FDIC does not want a rush on the banks that are on their Risk List.
No doubt someone is going to leak that list. In the mean time you have the customers of those 90 banks who are currently in a state of limbo as to what is going on. Think of it 90 banks! How many customers are at risk? How many have savings over $100,000.00, the amount insured by the FDIC? Which communities will be affected should these banks fail?
Right now wall street is in a state of nerves wondering about those 90 banks as is Washington. Here is the link to the ABC News article and below is one of the lists mentioned.
Who’s Next? List of Troubled Banks Worries Wall Street, DC
ABC News Has Obtained Privately-Prepared Lists of Most Troubled Banks
By BRIAN ROSS, RHONDA SCHWARTZ, and JUSTIN ROOD
Update July 14, 2008
I have been posting on the economic situation in the states and around the world since last October and there has been nothing but a downward spiral since then. At the rate things are going we will soon see the barrel of crude at the unheard of price of $200 a barrel and as for the bank failures they have already begun and those who did not heed the warning are now at a loss.
Some IndyMac customers are already getting the bad news:
There are, however, an estimated 10,000 IndyMac depositors who had a collective $1 billion over federal insurance limits. In an unusual move, the FDIC said it would give those customers access to 50% of their uninsured deposits. Any additional payments would be made only if the sale of IndyMac assets proved sufficient.
Don’t take my word for it, check around on the net and see what others are saying. People are already starting to become suspicious of banks in this shaky economy.
Now the Treasury has to step in to save Fannie Mae and Freddy Mac!
Treasury Acts to Shore Up Fannie Mae and Freddie Mac
Update July 13, 2008
Diesel hits record, gas ticks higher
Update July 12, 2008
Well it just keeps getting worse as each day goes by and there is no promise of an end in the near future. Now it is IndyMac that has collapsed. Who will fall next as this credit crunch continues?
Here is the report by Catherine Clifford and Chris Isidore,
The fall of IndyMac
Feds seize bank - once a leading mortgage lender. It may turn out to be most expensive collapse ever. One thing is sure: The credit crisis is still with us.
By Catherine Clifford and Chris Isidore, CNNMoney.com
writers Last Updated: July 12, 2008: 10:58 AM EDT
Click here for CNN Special Report Mortgage Meltdown
Update: July 7, 2008
List of failed banks. This list includes banks which have failed since October 1, 2000.
Failed Bank List FDIC
Bank Failures: Should You Be Worried?
Update: June 29, 2008
Here are today’s links. From what I have been able to see things seem to be getting grim in many parts of the world.
You can click on Worldwide Energy Shortages below for articles from different countries ( regarding energy ).
Recession Diet Just One Way to Tighten Belt
Across Globe, Empty Bellies Bring Rising Anger
High food prices could reverse agricultural growth in transition countries
As Food Crisis Looms, Key Research Remains Underfunded
Global Food Crisis: Hunger Plagues Haiti and the World
Update June 27, 2008
Oil above $142
It seems that there is no end to the escalating oil prices and subsequent gas price hikes that follow.
Today June 27, 2008, oil hit $142.00 per barrel and at this rate we will probably see $200 per barrel long before my original prediction of March 2009. No doubt this will have the continuing domino effect on all other things in all sectors.
Already I begin to wonder how many people are going to suffer come this winter when heating costs will skyrocket.
At the rate that oil keeps going up I suspect we might reach $172.00 by December 2008 if not more!
Well, you can read about the current oil situation below:
Oil touches record above $142
Crude prices rise as the dollar hovers near record lows and supply concerns persist.
NEW YORK (CNNMoney.com) — Oil prices surged to record high above $142 on a weak dollar and supply concerns, but later erased most of the gains. More…
Update June 12, 2008
If you think you can bear it here is THE link that will show you where the worldwide energy shortages are being felt and some of the news from those areas. Be warned, its looking grim worldwide. If you go near the bottom of the page you will find a complete list of the affected countries. Click on the link below to see the report. I would strongly suggest that you bookmark this site as you will probably have to return to it quite frequently.
Energy Shortage Worldwide Energy Shortages
Update June 5, 2008
Global Food Crisis
This is a MUST SEE series over at Geographic regarding the on-going global food crisis.
Global Food Crisis
From Kenya’s slums to India’s rice paddies to Brazil’s cafes, the skyrocketing cost of food has left no corner of the globe untouched. A special series by National Geographic News explores the myriad local faces of the world’s worst food crisis in decades.
CLICK HERE FOR SERIES
Update June 2, 2008
Well, if you came here looking for good news about the economy you landed on the wrong website. As you will see below gas, oil and food prices continue to go up causing worries in countries across the globe.
Right now I would say we are beyond the political rhetoric as to whether or not we are in a recession or the beginnings of a depression, or whatever other name you want to give it. The fact of the matter is that the whole country is hurting right now and they need solutions not more rhetoric or denials. It does not matter what part of the country you live in the fact of the matter is that the economic condition is staring you right in the face from the minute you get up until the minute you lay down to sleep. Pick up any paper anywhere in the U.S. and the economic condition is the top dog article be it in gas prices, food prices or prices on other things.
Already we are starting to see articles reminiscent of the 1929 Great Depression. People losing their homes as well as their jobs left and right. People sleeping in their cars or homeless shelters, or the street because they lost their homes. People having to decide between a gallon of gas or
a gallon of milk ( which in many parts is as or more expensive than gas ). In some places the gas pumps wont work because they were not designed to deal with the current prices. Whole companies are going under on a daily basis. There are some communities that have lost their local airports ( at last count about 30 ) and now have to travel even further for a flight out.
As has always been the case it is the nations poor that will feel and bear the brunt of this. One might ask what is the government doing to prepare for the disaster that is coming besides preparing troops for riot duty?
Well, here are the latest links. The first is to the CNN Specials index Fueling America where you will find a map showing the current prices of gas across the states. You can also click here: Map of Average Gas Prices throughout the U.S.
Click on image for Fueling America
UNITED NATIONS (AP) — World leaders at a U.N. summit have the opportunity to devise a strategy to stop skyrocketing food prices from adding millions more to the multitudes of those across the globe who already lack enough to eat.
More…
EU food prices on the rise
BRUSSELS, Belgium (AP) — Food prices in the European Union rose by more than seven percent over the past year, almost double the rate of inflation, the EU said Monday.
Some of the EU’s poorest members, in eastern Europe, have been hardest hit. Several experienced percentage increases in food prices that were in double digits.
More…
Stocks fumble on bank woes
Wall Street slides after a pair of financial firms announce management shakeups, and S&P cuts debt rating for Merrill, Lehman and others.
NEW YORK (CNNMoney.com) — Stocks tumbled Monday on new worries about the financial sector after S&P cut its debt rating on a number of banks, and Wachovia and Washington Mutual announced management shakeups.
More…
***
Update: May 24, 2008
Analysts foresee ‘new world energy order’
PARIS, France (AP) — A leading global energy monitor fears there may not be enough oil out there to slake the world’s thirst — and is preparing a landmark forecast that could reverberate through the global economy even as major companies announce fuel-related cutbacks.
He said most demand now and in the coming decades will come from China, India and the Middle East. That is a stark shift from past decades, when the U.S. and Europe were demand-drivers.
chief economist Fatih Birol
Update: May 18, 2008
I started this post back in October of 2007 ( go to the beginning at the bottom ) and since January 2008 the price of oil ( per barrel ) has gone from $100 to $128 ( May 18, 2008 ) an average of $5.60 per month.
In October of 2007 the average per gallon cost for gas was $2.80+. Currently it is around $3.70+ ( see chart below ).
Weekly U.S. Retail Gasoline Prices, Regular Grade
Like I have always stated I am not an economist but using simple math and not including various circumstances which are not reflected here the price of oil may hit $184 by March 2009 if not sooner. If things are bad now just imagine what it will be like then!
Then there is the problem of oil production having reached its peak as some analyst have been warning ( http://www.energybulletin.net/primer.php http://www.theoildrum.com/node/3001
http://www.lifeaftertheoilcrash.net/ ). Obviously there are many in the oil industry that are going to battle this tooth and nail just like when the tobacco company executives swore up and down that tobacco was not addictive.
Here are some numbers I have worked out ( very basic and simple )
Oil hit $100 per barrel on Jan. 2. 2008
Oil hit $128 per barrel on May 18, 2008
Total of 5 months for an average of $5.60 per month
At that rate projected oil price:
5 months from today May 18, 2008= $156.00 by October 2008
10 months from today May 18, 2008= $184.00 by March 2009
15 months from today May 18, 2008= $212.00 by August 2009
Off course that is barring any events that may affect oil production such as terrorist attacks on Saudi oil fields, a World War, etc.
Sites to use to check out Gas prices by state or province
http://www.gasbuddy.com/gb_gastemperaturemap.aspx
http://www.msnbc.msn.com/id/9317029/
Current Gas Prices and Price History
http://zfacts.com/p/35.html
Here is todays link that relates directly to what I have posted above:
Oil sets record near $128; pump price at high, too
Update: May 17, 2008 12:05 p.m.
Behind the Scenes: Powering the planet
See this special investigative report Tonight and tomorrow, May 17 and 18, 2008 8 p.m. ET on CNN.
This report is relevant to the material seen on this post.
“ It was time travel, globe-trekking and fact-checking all rolled into one. It was about oil and our addiction to it, how we keep it flowing and what happens if the supply is interrupted.”
Click here for CNN site and information
“CNN: Special Investigations Unit” is a documentary investigative series, airing Saturdays and Sundays at 8 p.m. ET, that features CNN’s top correspondents delivering in-depth hours on pressing issues currently in the news. “CNN: Special Investigations Unit” taps into the network’s worldwide resources and deep bench of top-notch journalists, including special correspondent Soledad O’Brien, chief international correspondent Christiane Amanpour, anchors Anderson Cooper and Campbell Brown, chief medical correspondent Dr. Sanjay Gupta, correspondents Abbie Boudreau, Drew Griffin and others to offer a strong brand of enterprise investigative reports.
Update: May 5, 2008 3:00 p.m.
Irresponsibility of the Bush administration
“In the long run, our economy is going to be fine. Right now we’re dealing with a difficult situation,” Bush conceded, without predicting when jittery Americans might expect a rebound.
That’s what President Bush said on Monday March 17 2008. Now here is the thing, in view of the many recorded lies ( on record, that are known ) are we being asked to risk our personal economies on his word that the economy will make a rebound? Are you willing to risk your families economic security and health on the word of a man with the worse record ever as a president.
George W. Bush’s presidency appears headed for colossal historical disgrace.
This is actually what most people are thinking:
(CBS) This CBS News Poll finds an American public increasingly pessimistic about the economy, the war in Iraq, the overall direction of the country, and the president. Americans’ outlook for the economy is the worst it has been in four years. Most expect the price of gas to rise even further in the next few months.
That was in October 2005 ! Think about it, things are a whole lot worse yet he wants us to believe they will be better with his various economic plans!
If that were the case then why are we still seeing headlines like this one:
And there does not seem to be an end in sight. Day by day, week by week we plunge deeper into what many now feel is an economic depression.
November 17, 2007
‘Substantial recession’ may follow lending cuts in US, bank warns
Now people seem to be waking up out of their state of complacency and taking a good look around and they don‘t like what they see.
ECONOMIC GLOOM: A `USA Today’/Gallup Poll released yesterday found more than three in four Americans think the US is already in a recession
Wednesday, Mar 19, 2008, Page 1
US President George W. Bush said on Monday he expects the economy to ride out a financial storm that is roiling markets, with the help of his administration and the Federal Reserve.
It would seem that some of the people are finally admitting that we are currently headed for a major economic disaster, at least 59% and I am sure that those figures will continue to change.
The people are finally coming out of a state of denial. Let us hope that the next administration will do better though they will actually inherit the current mess being left by the Bush administration.
Update: May 2, 2008 6:11 a.m.
In the meantime the FDIC has already begun to prepare for the worse.
And:
Update: April 28, 2008 9:20 a.m.
Today I have a number of links to sites that have some rather sobering accounts and statistics about the current world food and economic crisis.
I found the following note at Planetary Rescue Operations:
Boy! Talk about a mouthful in two sentences. Well here are the links:
The First Wave of World’s Collapsing Cities
Seeding Socioeconomic Avalanches
Fundamental Human Rights
The Right to a Sustainable Future
I consider these to be MUST READ SITES for all those concerned with the current economic crisis that is gripping our world!
And if you want to see how serious this is just just check out the Google Search page for Food Riots HERE
There are currently 657,000 entries!
Update: April 26,2008 11:10 p.m.
The Hidden Battle to Control the World’s Food Supply
Update April 23, 2008 3:06 a.m.
Apokalypsis
Update April 18, 2008 7:46 p.m.
It seems that everyday we get up to even higher gas prices with no end in sight. Today is no different. Another new record for oil prices was set today when it reached $117 a barrel. Gas is now close to $3.50 per gallon and diesel is above $4.00 per gallon.
Now to make matters worse some militants have taken the matter into their own hands by blowing up a pipeline in Nigeria who it so happens is a major supplier of oil to the U.S.
At this rate we are going to end up with government imposed car pooling! Check out the bad news:
Gas prices push closer to $3.50 a gallon, oil hits $117
Update April 18, 2008 7:20 a.m.
This one is an eye opener. Merrill Lynch is in trouble! Merrill Lynch! This is THE worlds largest brokerage.
What are the people to do if the worlds largest brokerage can’t deal with the economy? Think about it. When is the government going to admit that we are on the verge of a major economic depression? Obviously they don’t want to mention the “D” word for fears there will be a rush on banks like took place during 1929. Check this out and this was in August 2007:
Worried about the stability of mortgage giant Countrywide Financial, depositors crowd branches.
Or better yet go here:
Credit crunch fears send markets reeling
Or this one:
Ambrose Evans-Pritchard: Crisis may make 1929 look like walk in the park
And yet this is what our Fearless leader has to say:
He said: “Our financial institutions are strong and our capital markets are functioning efficiently and effectively.” President Bush said the US Government will continue to monitor the situation closely.
Yea Right! Well here are today’s links.
Merrill Lynch posts steep first-quarter loss on write-downs
Oil prices stay near $115 a barrel after hitting record
Update April 16, 2008 7:52 p.m.
Current Price of?
Today I decided to check out prices of the usual stables that we get just to make a meal and get by. Below are the results and their links. Be aware that prices vary according to region but what is shown below gives something of an idea as to what the people face in these times.
current price of corn
Is $3.23 a bushel more than half again what it was a year ago, and beginning to bring to mind the record $5.545 a bushel set in July 1996.
http://www.nytimes.com/2007/02/06/opinion/06tue4.html
current price of bread
In recent months, the cost of a loaf of bread has been rising faster than the price of a gallon of gas. It turns out not one factor, but a “perfect storm” of several, are to blame.
http://www.wtvh.com/news/local/17557874.html
Current price of milk and eggs
Milk prices, for example, increased 26 percent over the year. Egg prices jumped 40 percent.
http://www.boston.com/business/personalfinance/articles/2008/03/09/surging_costs_of_groceries_hit_home/
Current price of coffee
Coffee prices continued to rise into 2008 on the back of increased costs at the end of 2007, according to new figures from the International Coffee Organisation (ICO).
http://www.beveragedaily.com/news/ng.asp?id=82588
Current price of chicken
Could not find the current price of chicken but did find news of the poultry industry.
Record-high costs for feed continue to hammer the U.S. chicken industry and has led Pilgrim’s Pride, (PPC) the largest U.S. chicken company, to announce Wednesday that it will ax 1,100 jobs and immediately close seven U.S. facilities.
http://ottawahitech.newsvine.com/_news/2008/03/13/1363605-pilgrims-pride-shuts-7-sites-blames-cost-of-chicken-feed
These are just some of the basic foods
Update April 15, 2008 4:22 a.m.
Crude oil above $114
Crude Oil at $114 ,new average national record of $3.386 per gallon for gas, and diesel prices at the pump jumped to $4.119 a gallon and they say the economy is fine! Well click here for the latest article regarding these latest prices.
Food Costs Rising Fastest in 17 Years
Update April 14, 2008 8:22 a.m.
Asian, European Stocks Fall
Update April 6, 2008 11:16 a.m.
Huge Job Losses Set Off Recession Alarms
By JEANNINE AVERSA, AP Posted: 2008-04-04 21:12:35
WASHINGTON (AP) - It’s no longer a question of recession or not. Now it’s how deep and how long. Workers’ pink slips stacked ever higher in March as jittery employers slashed 80,000 jobs, the most in five years, and the national unemployment rate climbed to 5.1 percent. Job losses are nearing the staggering level of a quarter-million this year in just three months. More…
Update April 3, 2008 9:10 p.m.
Bernanke Says U.S. Economy May Slip Into a Recession (Update5)
April 2 (Bloomberg) — Federal Reserve Chairman Ben S. Bernanke acknowledged for the first time that a U.S. recession is possible because homebuilding, employment and consumer spending will deteriorate.
Where does this guy live? Most mainstream medias have been saying recession for some time, now the chairman of the Federal Reserve acknowledges it! The U.S. Economy MAY slip into a recession! I think you would get a better feel of the economy if you asked your local street vagrant!
Get a look at these headlines:
UK: Wall Street Journal U.S. edition to be printed in London
Dell Plans to Cut More Jobs As CEO Looks for Savings
Schering-Plough announces layoffs, plant closings
Nationwide Layoff Watch: Edwards Angell Palmer & Dodge
And the there is this report from the U.S. Department of Labor
Dated Friday, March 21, 2008
Mass Layoffs Summary
This is not counting the myriad of articles dealing with layoffs, unemployment, homeless figures, the mortgage crisis, companies that are out sourcing, moving or closing, etc., etc.
Talk about a state of government denial. I won’t even mention OIL. We all know the fiasco that is taking place there. Oil companies asking for tax cuts!
Has anyone noticed that not one government agency will mention the D word,
DEPRESSION!
____________________
Depression Era Survival 101
Learn how to cut your grocery bill! Click Here
Update March 27, 2008 3:26 a.m.
Today I am putting in my two cents worth on the matter. Read and think it over.
Can It Get Worse?
It seems that where ever you look now a days there are signs of the ongoing economic slump and there is no sign of it getting better. Oil prices continue their upward rise. Stocks continue to go down on a regular basis which in turn creates a domino effect everywhere else. People have had to cut back on things they actually need like food, medicine and other necessities. Even big companies are feeling the pinch and are struggling to hang on. Just this morning the news came out that Ratan Tata, is buying into a history of trouble with his $2.3 billion cash deal, to acquire the Jaguar and Land-Rover companies from Ford. Think of that, Ford an American company, having to sell two of its companies to make ends meet and to a foreign company at that!I am certain there are a lot of deals going on behind closed doors that amount to the same but you wont here of them until they are closed. Then the pink slips go out by the bushel!
Check around! As is foreclosure are up 60% over this same period from last year. Many people are just opting to walk away from their homes and some have even gone to the (illegal ) extreme of torching their home to try to collect on the insurance. Everyday there is a new poll with new figures regarding the economy and none give any hope of any of this slowing down or stopping. Did you hear the one about the guy who robbed food only to be beaten by the store owner with a ham! Its funny as hell except that the guy robbed FOOD, not money or jewels but FOOD. That one was a short clip on CNN ( sorry, can‘t find the link for that one). Here is what the government says:
Washington — President Bush and Federal Reserve Chairman Ben Bernanke have emphasized to world economic markets that the U.S. economy remains fundamentally resilient and concerns about a slowdown in growth could be ameliorated by a short-term stimulus package.
Ameliorated! Why don’t they just say made better!
What about this one:
That one is right from the White House.
I forgot, these people are from the top 1% bracket so a $100,000.00 means nothing to them. A $100,000.00 is like toilet paper to them! Think about that the next time you have to fill the gas tank or have to decide between food and medicine. Think about it when the cop comes to nail the foreclosure notice on your door! Oh, this one is a real winner: Where to stash your cash now. What Cash! Obviously not written for the low rung hangers like you or me.
What about all that money that is being thrown away on the two wars we are currently involved in? Anyone know what that comes to? Here:
Before the war, White House economic adviser Lawrence Lindsay estimated the cost at $100 to $200 billion. So the White House got rid of him and “re-estimated” the cost at $50 to $60 billion. It’s now over $500 billion.
Poor Lindsay!
What would $500 billion ( and counting ) do for our economy right about now?
Can It Get Worse? You bet it can!
Hunterseeker.
Update March 23, 2008 8:21 p.m.
Who’s Next?
Well, now that the Bear Stern Wake is over you might be asking yourself, who’s next? Or better still, will we know?
During the demise of Bear Stern there were reports that the Old Chief denied any reports that the bank was in any problem and insisted that they had tons of credit. Take a look at this from the Telegraph.co.uk:
And this one:
That sort of makes one wonder. Will we truly know when the next bank begins to go under? Bear Stern was the 5th largest investment bank ( according to some CNN snippets ) let that sort of settle in your mind the ask, what of the other top 4? What is their current condition? What of the other 5 in the top 10?
Like I have said before, I am no economist but I know a thing or two about people! The last thing any bank is going to do is admit they are in financial trouble. The bank exec’s could be staring bank collapse in the face and they will be in a state of denial until the axe falls!
I’m not saying that this is what will happen but I start looking at reports about banks with suspicion.
What about the latest move by Citigroup? From the deal book blogs NY Times.com:
Citigroup to Cut 2,000 More Jobs By THE NEW YORK TIMES Published: March 20, 2008
Citi announced 4,200 layoffs, mostly in investment banking, in January. And on Thursday, The New York Times reported that an additional 2,000 will be dismissed by the end of the month. These layoffs are happening all over the world, but are likely to be concentrated in New York and London.
What about this one:
UBS Is Said to Consider 8,000 Layoffs
By DOW JONES Published: March 17, 2008
You might want to take a peak at some government figures. You can check this report:
though frankly I tend to stay away from government reports. You might recall what our Fearless Leader in the White House said just this past August:
You know what? Europe and the Asians are not buying into this! Check this out:
Pessimism Over U.S. Sweeps World Markets
(CBS/AP) Overseas investors, gripped by fears of a U.S. recession, dumped shares over skepticism that an economic stimulus plan U.S. President George W. Bush announced on Friday would shore up an economy battered by problems in its housing and credit markets.
That report was on January 21 2008, way before the Bear Stern Wake! I wonder what the Europeans and Asians are thinking now?
This is all food for thought while we continue to tighten our belts every morning and hear government reports about how strong the economy is while the cop tacks the foreclosure notice on your neighbors door!
Every morning I ask the same question, who’s next?
Hunterseeker
Update March 22, 2008 4:35 a.m.
In my usual morning hunt across the net I came across two very informative sites that I feel I should point out to my readers. They both have a wealth of information directly related to our present economic condition. I may lose some readers to these guys but like I said before I provide links to informative sources that might be of help to others in these uncertain times. I am not doing this for any ratings or medals! Here are todays links:
ECONOMICROT
Is the Credit Crunch Over?
Econbrowser
More bad news
Update March 18, 2008 10:31 a.m.
Well, I have been pointing to it for the longest time and finally the dreaded word is making its way onto the main stream media,
DEPRESSION!
Now there are polls almost on a daily basis somewhere in the U.S. to see what the people think. Here is yet another poll:
Poll finds broad pessimism over economy
You can also go here for another account:
Is It a Recession? Or a Depression? Shocking New Gallup Poll…
_____________________
Update March 17, 2008 8:31 p.m.
Poll: Three-quarters think U.S. in recession
March 17, 2008 — Updated 1912 GMT (0312 HKT)
By Paul Steinhauser
CNN Washington Bureau
(CNN) — Nearly three-quarters of all Americans think the economy is in a recession, according to a national poll released Monday.
Seventy-four percent of those questioned in a CNN/Opinion Research Corp. survey say the economy has entered a recession. More…
Update March 17, 2008 2:09 p.m.
Sale Price Reflects the Depth of Bear’s Problems
By ANDREW ROSS SORKIN Published: March 17, 2008
In a shocking deal reached on Sunday to save Bear Stearns, JPMorgan Chase agreed to pay a mere $2 a share to buy all of Bear — less than one-tenth the firm’s market price on Friday. More…
Update March 17, 2008
Any Soup Kitchens by You Yet?
Still many ( in a state of denial ) refuse to believe we are headed towards an economic depression. Well, I suggest you take a good look around you because things do not look like their getting better in spite of the efforts of the Fed. Check in with me in another month or so and we’ll compare notes.
You might be interested in knowing that this is my most viewed post on this blog which would be an indicator as to how concerned people are regarding the economy.
Update: March 14, 2008
Oil hits record of $111 on dollar slump
ReutersThursday March 13, 11:51 am ET
By Ikuko Kao
LONDON (Reuters) - Oil rose to a fresh record high on Thursday, hitting new peaks for the seventh trading day, as a weak dollar overshadowed an increase in U.S. crude inventories.
U.S. crude for April delivery struck a new high of $111.00 a barrel. It was trading at $110.93, up $1.01 by 11:02 a.m. EDT. More…
Motorist group survey shows average fuel prices at another all-time high; West coast drivers pay the most.
March 14, 2008: 6:56 AM EDT
Gas prices sustain record run
NEW YORK (CNNMoney.com) — The nationwide average price of gasoline set another record Friday, according to the closely watched survey conducted for the motorist group AAA. More…
Note: Gas prices each $4.40 in Hawaii. Click here for that article.
Update: March 13, 2008
US gold hits $1,000 record high
March 13, 2008 8:36 AM ET
Update: March 12, 2008
While you are already here check out my other post:
Update: March 12, 2008
The Fall of the American Consumer
By Barbara Ehrenreich, Barbaraehrenreich.com. Posted March 12, 2008.
How much lower can consumer spending go? The malls are like mausoleums, retail clerks are getting laid off, and AOL recently featured on its welcome page the story of man so cheap that he recycles his dental floss — hanging it from a nail in his garage until it dries out.
Update: March 11, 2008
Gas Prices Rise to New National Record
By JOHN WILEN, AP Posted: 2008-03-11 11:43:45
NEW YORK (AP) - The cost of filling up the family car jumped to a record high Tuesday, adding to the challenges consumers already face with falling home values and rising food prices.
Gas prices at the pump rose overnight to a record national average of $3.2272 a gallon, according to AAA and the Oil Price Information Service. That’s a tad higher than the previous record of $3.2265, set last May. More…
Update: March 11, 2008
I found a rather interesting site during my morning hunt across the internet this morning that I thought my readers would be interested in. Here it is:
Update: March 7, 2008
Stocks Tumble Following Jobs Report
Update: March 6, 2008
Oil Prices Spike to New All-Time High
3/1 CNN Your Money: Talks of Great Depression Coming
Link viewed in video: ShadowStats,com
Unsustainable (200 
‘Unsustainable’ is a journalist’s investigation of a decades long storm ahead. At its heart lies a simple truth: Our minds may be infinite in desire, but the world is finite in supply.
Davos Annual Meeting 2008 - Bill Gates
Echoes of the 2008 Davos World Economic Forum
with Joe Schoendorf, Paul Saffo, and John Markoff.
Join swissnex and our esteemed panel for a debriefing and discussion on the recent 2008 World Economic Forum in Davos. Learn how today’s economic and social challenges affect our future and translate to changes in the world. All speakers are 2008 World Economic Forum participants in Davos and bring their own unique insight - swissnex
Video 1 hour 6 minutes Click here to view.
Update: March 4, 2008
Oil Above $102 After Overnight Record
By GILLIAN WONG, AP Posted: 2008-03-04 00:33:36
SINGAPORE (AP) - Oil prices held steady Tuesday in Asia after blasting overnight to a record near $104 a barrel and then falling back. More…
Update: March 3, 2008
Japan’s stock index dives 4.5 percent
2 hours, 24 minutes ago
TOKYO - Japan’s main stock index fell 4.5 percent Monday to a five-week low, tracking Wall Street’s losses at the end of last week amid persistent concerns about the U.S. economy. More…
Update: February 28, 2008
Bush Says US Not Heading for Recession
By TERENCE HUNT, AP Posted: 2008-02-28 11:11:29 WASHINGTON (Feb. 2 - President Bush said Thursday that the country is not headed into a recession and, despite expressing concern about slowing economic growth, rejected for now any additional stimulus efforts.
Update: February 27, 2008
Consumers Cut Back on Small Pleasures
By Bruce Horovitz,
USA Today Posted: 2008-02-27 12:05:52
Filed Under: Business News
(Feb. 27) - Jason Jepson works for a chi-chi yacht dealer in Newport Beach, Calif., but he’s so worried about the economy he stopped buying $1.79 PowerBars at his gym. More…
Update: February 22, 2008
Venezuela seizes 1/2 ton milk and chicken from clinic
Could this be a sign of things to come in the U.S. as well? I was not surprised when I saw this article in Reuters and while many will say it’s in Venezuela I have no doubts this same situation will befall many in the states once the Big Crunch begins. Already this week oil has gone over the $100.00 mark and all forms of merchandise will begin to go up again. Even the mainstream media can no longer avoid using the R word, recession.
Click here for the article.
Hunterseeker.
Predicting recession.
Be warned, its for the technically minded!
Update: February 20, 2008
Oil Closes Above $100 for First Time
By JOHN WILEN, AP Posted: 2008-02-19 20:06:59
(Feb. 19) - Oil futures shot higher Tuesday, closing above $100 for the first time as investors bet that crude prices will keep climbing despite evidence of plentiful supplies and falling demand. At the pump, gas prices rose further above $3 a gallon. More…
Update: February 17, 2008
I spotted this article by Henry Banta at Nieman Watchdog.org and felt that it merited a link here. Click at the bottom of this post for more articles by Henry Banta.
Inequality and the sub-prime crisis
February 13, 2008
By Henry Banta
henrybanta@aol.com
There is an obvious question that is not being asked. Perhaps out of thoughtlessness, but perhaps out of fear of the answer.
It appears widely accepted that somewhere around 1980 the share of the gross domestic product going to a very small number of the very rich exploded and the share going to everybody else began to slide downward. More…
More articles by Henry Banta.
Update: February 16, 2008
Foreclosures exact price on day workers
By EVELYN NIEVES The Associated Press February 16, 2008
GRATON, Calif. — The most desperate men park themselves on corners well before dawn, hoping for first dibs on jobs.
Most days, no one gets dibs — no one gets jobs.
Foreclosures are at record highs, home sales are at record lows and skittish consumers are cutting back on spending, all of which means contractors, construction crews and carpenters are no longer hiring. Neither are landscapers, cleaning services or homeowners. More…
2008: The Humbling of America
Posted January 2, 2008 | 02:52 PM (EST)
Mike Garibaldi-Frick
Over the holidays, I asked my 92 year old Grandmother what she thinks about the current economic climate. As someone who lived through the Great Depression, she feels that our society is now technologically advanced enough to avoid another economic crash. “People are more educated and innovative these days,” she explains. But can innovation and technological prowess save us before it’s too late? More…
This one is a bit dated but worth reading as the material there still deals with the current situation. There is also a list of other Bloggers worth checking out.
Depression — And Its Activism Antidote –
Will Lead to Bush’s Downfall
Bernard Weiner
Co-Editor, The Crisis Papers
April 7, 2003
Update: February 14, 2008
Bernanke Warns of Worsening Economy
By JEANNINE AVERSA, AP
Posted: 2008-02-14 10:39:14
WASHINGTON (Feb. 14) - Federal Reserve Chairman Ben Bernanke told Congress Thursday that the country’s economic outlook has deteriorated and signaled that the central bank is ready to keep on lowering a key interest rate - as needed - to shore things up. More…
Update: February 8, 2008
How Deep Will the Recession Go?
By John Miller, Dollars and Sense. Posted February 8, 2008.
The economic recovery underway since late 2001 is probably over. Too bad many Americans never got to experience it.
It’s not only radical economists and cyberspace Cassandras uttering the “r”-word nowadays. Just what are we to make of it when Harvard economists, The Economist magazine, and Morgan Stanley followed by Goldman Sachs and Merrill Lynch say the economy is headed toward, or already in, a recession? More…
Update: February 5, 2008
MARKET SNAPSHOT: Stocks Tumble As Data Signal Recession
By Nick Godt
Update: February 4, 2008
Update: February 1, 2008
A lot of people have been critical of this executive order and some people feel it is no more than a propaganda council to keep the people from knowing the truth about the economy. Well here is the link so you can check for yourself, with a good magnifying glass!
Executive Order:
Establishing the President’s Advisory Council on Financial Literacy
After reading the above you might want to check this out, click Here
_____________
Update: February 1, 2008
The U.S. can’t dodge a slowdown
Plans to stimulate the economy are well-intentioned — but thanks to pressure on the dollar, they may be doomed.
By Colin Barr, senior writer
NEW YORK (Fortune) — The government is pulling out the stops to avert a recession this year. But there are signs that a protracted slowdown may be unavoidable - and that efforts to goose the economy may make matters worse. More…
CRUDE
The History Channel
Sunday, January 27 8 pm
http://www.history.com/search.do?searchText=Crude
Crude DVD $29.95
I put this entry here because it has a direct bearing with this post.
I consider this to be a MUST SEE documentary.
Updated: January 23,2008
What others are saying: Forum
Great Depression in 2008 (Putin, Iran, dollar, program)
Gordon Brown and U.N. to Create New World Order
Andrew Grice The Independent
January 21, 2008
________________________
Urgently, Washington Responds
By STEVEN LEE MYERS and STEVEN R. WEISMAN
Published: January 23, 2008
WASHINGTON — Even though Monday was a holiday, Ben S. Bernanke showed up early at his office at the Federal Reserve. The next day, he was planning a trip to New York. More…
How to Stop the Downturn
By JOSEPH E. STIGLITZ
Published: January 23, 2008
AMERICA’S economy is headed for a major slowdown. Whether there is a recession (two quarters of negative growth) is less important than the fact that the economy will operate well below its potential, and unemployment will grow. The country needs a stimulus, but anything we do will add to our soaring deficit, so it is important to get as much bang for the buck as possible. The optimal package would contain one fast-acting measure along with others that could lead to increased spending if and only if the economy goes into a steep downturn.
Though this article is somewhat dated many indicators are still valid. You might want to check it out.
The Coming Economic Depression
Excerpt:
Here are some clues that will tell you that a banking failure has occurred:
- You will not be able to get money at your local ATM.
- Limited access to money at your local bank. Probably, most banks will be forced to close however, in order to keep panic from spreading, local branches may be open to provide extremely limited services.
- Your credit cards will not be accepted.
- Most financial news will be strictly controlled and it may become illegal to say the banking system has collapsed.
- There will be several days of economic inactivity/uncertainty while the Government implements emergency economic measures.
Update: January 22, 2008
Stocks Plummet Around the World
Dow Pares Losses After Early Plunge
By MADLEN READ, AP Posted: 2008-01-22 11:59:20
ASIA MARKETS Tokyo falls 6%, Hong Kong 9% as rout continues
By V. Phani Kumar, MarketWatch
Last update: 4:32 a.m. EST Jan. 22, 2008
AP
Japan Stock Market Plunges to 2-Year Low
Wednesday January 16, 4:22 am ET
Japan’s Main Stock Index Plunges to 2-Year Low on US Economic Concerns, Strong Yen
Those worries also drove the dollar to a 2 1/2 year low against the yen. More…
Stock market plunges deeper
14/Jan/2008 Intellasia | ATPVietnam
Jan 14, 2008 - 10:51:56 AM
Toronto Stock market plunges more than four per cent in Monday trading
David Friend, The Canadian Press
January 21, 2008 - 12:40 a.m.
The 520-point drop, which is about or 4.1 per cent of the market, trimmed more than $70 billion in value from the TSX on top of a 6.6 per cent dive last week that had already wiped out all of the market’s gains for 2007.
The losses eroded the value of stocks held by millions of Canadians either directly or in their mutual funds or pension plans. If consumers suddenly start feeling poorer because of the market drop, it could also lead to lower retail spending and further erosion in growth in the overall economy. More…
Stock Market Plunges
AP | February 27, 2007 02:16 PM
_______________________
Updated: January 17, 2008
Wealthy may be next in line in U.S. home crisis
By Nick Carey Wed Jan 16, 9:15 PM ET
HINSDALE, Illinois (Reuters) - A house in this wealthy Chicago suburb is far beyond the reach of most Americans.
Unfortunately, Hinsdale may also now be too expensive for some of the people who already live here. More…
Updated: January 5, 2008
Brutal selloff on Wall Street
Dow tumbles over 250 points after weaker-than-expected jobs report revives recession worries. The Nasdaq plunges.
By Alexandra Twin,
CNNMoney.com senior writer January 4 2008: 6:03 PM EST
NEW YORK (CNNMoney.com) — Stocks tanked Friday, with the Dow shedding over 250 points, after a weaker-than-expected December jobs report exacerbated recession fears.
More…
Administration Considering Tax Cuts
By MARTIN CRUTSINGER,
AP Posted: 2008-01-04 17:52:05
WASHINGTON (AP) - The Bush administration, faced with a deteriorating economy and a big jump in unemployment, said Friday it was considering an economic stimulus package that might include tax cuts to ward off a recession. More…
__________________________________
Updated: January 2, 2008
Oil Futures Hit $100 for First Time
By JOHN WILEN,
AP Posted: 2008-01-02 16:07:59
NEW YORK (Jan. 2) - Crude oil prices soared to $100 a barrel Wednesday for the first time, reaching that milestone amid an unshakeable view that global demand for oil and petroleum products will outstrip supplies. More…
Prepare for a global economic downturn but not a disaster
1/1/2008 1:53:00 PM ET
North America remains the global economy’s hub. Any assessment of the world economy in 2008 depends on the likelihood, depth and length of a US economic downturn and the magnitude of a global spillover. Any forecast is thus contingent on how we answer the following three questions. Will the financial crisis continue in 2008? Will inflation expectations rise further? Last, will there be a disorderly process of global rebalancing? If we answer all three questions with Yes, we should prepare for a global depression. More…
Credit Crisis Meltdown Is a Prelude to Global Economic Depression
Nov 15, 2007 - 12:42 AM
By: Christopher_Laird
contraction of credit
The West (US,EU, Canada) is in the midst of a gigantic and spreading credit crisis that may well to lead it into a depression, if it is not fixed soon. So far, Central bank infusions (Over $1trillion worth in a few months since July!) have been the only thing that has stopped a massive bank liquidity crisis from shutting down commerce. But the damage to credit markets thus far is so huge, and worsening rapidly, that a very bad outcome seems assured. Gregory Peters of Morgan Stanley said there is a better than 50% chance of a systemic banking crisis that will hammer credit markets at this time. More…
_____________________
OMINOUS WARNINGS AND DIRE PREDICTIONS
OR WORLD’S FINANCIAL EXPERTS, PART 2
by Dudley Baker & Lorimer Wilson
PreciousMetalsWarrants.com
March 21, 2006
The Coming Republican Economic Depression: Will the Stock Market Crash?
By Jeff Musall
Published Aug 21, 2007
Another Great Depression?
Gary North
Every system has limits. No one knows exactly where these limits are. All systems are complex, and no theory deals successfully with all of this complexity. More…
LEAP/E2020 Alert: Breaking phase ahead for the global financial system in 2008
Public announcement GEAB N°20 (December 15, 2007) - 16/12/2007
The rapid aggravation of the global systemic crisis as its phase of impact unfolds [1] has brought our researchers to estimate that the contemporary global financial system will reach a breaking phase in the course of 2008.
Crisis follow-up indicators now show that we should no longer only fear the failure of some large financial institution (and of many small ones) in the US first and the in the rest of the world (cf. GEAB N°19), but that the global financial system itself is structurally hit. More…
No $pin: The Impending World Great Depression & The Global Monetary Reform
There are numerous articles regarding the nation and the world economy at the site listed above.
Food and Fuel Compete for Land
By ANDREW MARTIN
Published: December 18, 2007
Shopping at a Whole Foods Market in suburban Chicago, Meredith Estes said food prices have jumped so much she has resorted to coupons. Charles T. Rodgers Jr., an Arkansas cattle rancher, said normal feed rations so expensive and scarce he is scrambling for alternatives. In Oregon, Jack Joyce, the owner of Rogue Ales, said the cost of barley malt has soared 88 percent this year. More…
_____________________
AlterNet sources of articles and blogs dealing with Economic Depression.
Here you will find a total of 212 articles and blog posts containing the term economic depression
Debt wobbles worldwide
The Press | Saturday, 27 October 2007
Did the world economy crash on August 9, but nobody heard it happen? JOHN McCRONE investigates whether the so-called credit crunch might have really been much more than just another fleeting economic alarm. Well, was there a crash or not?
Everybody in money circles is still talking about “credit crunch Thursday”, August 9, the day when all the big international banks simply stopped lending to each other, as jitters over the enormous extent of bad debts riddling world financial markets suddenly turned to tremors. More…
economic depressionTags: Any Soup Kitchens by You Yet?, Dada Maheshvarandanda, David Friend, Economic Depression, Global Systemic Crisis, government imposed car pooling, Huffimgton Post, Intellasia | ATPVietnam, JEANNINE AVERSA. Ben Bernanke, MADLEN READ, MarketWatch, Markey Watch, Stock Market Crash, The Canadian Press, The History Channel, Uncategorized, V. Phani Kumar, World Economy
March 17, 2008 at 3:20 pm
you seem like you have an expert understanding of the economic depression situation, are you interested in writing a few articles for me for payment. hope you get this, contact me.
Hey Mitchell,
I am not a writer. I am a common man observing the daily follies of Man and providing people with the links to be able to make up their own minds as to what to do. You might want to approach one of the fine ( non-governrment ) economist that are writing on the matter. Thanks anyway.
Hunterseeker
April 13, 2008 at 1:17 pm
[...] The Next Great Economic Depression [...]
May 17, 2008 at 4:29 pm
[...] See this special investigative report Tonight and tomorrow, May 17 and 18, 2008 8 p.m. ET on CNN. This report is relevant to the material seen on my post. The Next Great Economic Depression [...]
May 22, 2008 at 6:36 am
what did people do for necesities and food during the great depression? any suggestions on what we may do for these things in this new generation? i think people will have to go back to the old ways of doing things, such as growing their own food and raising animals to eat. gas in my town was 3.75 yesterday and is now(5-21-0
3.89. i know its bad now, but this is just the tip of the ice burg to what is coming on this world.
K
Thank you for your comment on Hunterseeker regarding The Next Great Economic Depression. Yes, this is only the tip of the iceberg and things are going to get much worse. No doubt the government has already begun making plans for gas and food rationing as well as other measures. Things will revert to the times of the last depression but worse. Since then people have had more liberty’s which are currently being stripped away on a regular basis by congress, the White House, Homeland Security, etc., etc. Just between the time that you posted your comment and now oil has gone up to $135 per barrel!
Old ways such as growing your own food and raising animals is OK if you live where you can do that.
Hunterseeker
June 16, 2008 at 6:01 pm
[...] For related news go to my post: The Next Great Economic Depression [...]
July 22, 2008 at 9:08 am
[...] Don’t forget to check out my other continuing post: The Next Great Economic Depression [...]