Financial Crisis Perspective?
I'm trying to put all this into perspective.
Is this the WORST financial crisis since the great depression? Was it worse in the late 80s? How about during the energy crisis of the 70's....
Did any of these times present a WORSE economic crisis than today?
Comments
This is a unique situation but if you had to compare it, 73-74 would come the closest.
Try reading,
"The coming Deflation"
by
c.v. myers.
It was published in 1975 , but reads as if it were published in 2008. Its a good history lesson and has excellent perspective. Its extremely cheap on Amazon.
This may WELL BE the worst, but the main difference is that the Great Depression was a problem of little liquidity ( meaning there was not enough money to go around for everyone). Today's problem, courtesy of the Federal Reserve Bank (A.K.A crooks) is that there is TOO MUCH money going around ( High liquidity) and that makes the money worthless.
Example:
You have one pair of ultra exclusive sneakers, they are worth more money. Everyone has a pair of the same sneakers, they become cheap. Over time they wear out, making them even cheaper. Why? Because too many of the same sneakers are on the "sneaker market".
The 70's were scariest since it involved everyone in inflationary prices; especially, a huge increase in rents and food. This time the huge decrease in housing is welcome since folks will now be able to buy a house at a reasonable price in the future. Otherwise, housing was going to be impossible. FDIC insurance in the banks will protect savings for those who live in a cash society. Credit was always a recipe for disaster.