The chart of the Dow Jones looks exactly like 1929. After a long rise it falls sharply, about the same amount it did last week. And after that comes a less steep but steady decline over 2 years, all the way to 10% of the high or so.
That was the Great Depression time into the 1930s.
May be they will blame Trump for this, although Obama, Bush jr. and the previous ones all participated in creating this situation. And nobody really has a solution for the problems that exist, whatever party it is. The only answer would be declaring a default of the debit - but then the glory days of the US are over.
You are viewing a single comment's thread from:
Politicians don't have as much effect on improving the economy as they think they do--but certainly they can screw things up, especially with accumulating debt. If anything makes our economy really tank, it'll be year upon year of Congress making absolutely no attempt at all to rein in spending ... some years they can't be bothered to pass a budget at all, much less a good one.
They have no intention to cut budgets of save money. Debt is the only thing that keeps the show running. It all works fine for the high finance. People like us think we can only spend what we have, but for the banks and governments that is not important.
And actually, things are way byond the point where saving or whatever would make a difference. Its as if you would have a loan of 100 million $ to pay back - do you think saving on your food bill or so would help to pay that?
So its also irrelevant who becomes the next president. Changing presidents is like changing underpants, at first they are clean, but later... :)
That won't keep us from trying! But conditions have been right for an economic downturn, and now the coronavirus and an oil price war are pushing us over the edge. The Federal government believes very strongly in spending its way out of recessions, so I expect we've got another few years of still more heavy spending ahead of us.
I doubt that printing money and giving it out to everybody who wants some can be the solution. It only leads to a total inflation, like we had in Germany during the Great Depression.
Lets see how this virus thing pans out - just now its bringing whole countries to a grinding halt, like Italy.
Try telling our government that! Congress members should be required to take a basic economics class ... or better yet, we could have term limits so they have to go out and survive in the real world.
I take it that the real experts are sure this is going to be widespread--the latest I'm hearing is 60-70% infection rate worldwide. They're trying to limit the speed of spread, so the medical infrastructure doesn't get overwhelmed all at once--which would increase deaths. The irony is, if they succeed everyone will say there was never a danger in the first place, rather than crediting officials for getting us through it.
Just last night Trump anounced a complete ban of all European travellers (except UK) and goods. That is incredible - I think that has never been done before.
And the destruction of the economy continues. Stock markets are nose diving, so do oil prices and interest rates. Hard times ahead...
On a different subject: guess what just appeared on Netflix - the second season of "Timeless"! I don't even try to understand what happened.
As long as it happened!