The recession could last for a whopping 20 years, John Rosevear of the Motley Fool writes. Rosevear points out that on Dec. 29, 1989, the Nikkei 225, Japan's benchmark stock index, reached a high of 38,957. However, on December 3, 2009, it closed at 9,977.67, a startling 74% decrease. He predicts that the US will follow the same fate because of "excessive asset expansion," weak corporate governance and the bank crisis. "The Japanese government's response to the crisis was very different from that of the United States. In a nutshell, it was several years before its government did much of anything, and what it finally did do was arguably too little, too late. But at the same time, it's hard to argue with this: In the past decade, the S&P 500 index is down more than 20%. It's a disturbing parallel to ponder, especially for those of us worried about our retirement portfolios," he said. With the unemployment rate at 10 percent, some experts are predicting the recession could end by the middle of next year, Bloomberg reported. Harvard University professor Jeffrey Frankel, a member of the National Bureau of Economic Research's Business Cycle Dating Committee, said the recession could end by the middle of 2010. ... He said the current estimates "presume that there won't be any new adverse shock. - MoneyNews
LINK HERE
Hunger, family homelessness on rise in U.S. cities
LINK HERE
This makes perfect sence. I'm 50 and things might get better by the time I'm 70, just in time to die. My 401K is worthless. Our economy is 70% consumption based. The only thing I see people buying is food and ammo. The car lots are stocked with new cars and no customers. This Christmas season will be the tipping point. If people don't get out and spend... fade to black, roll credits, game over.
ReplyDeleteI lost my job in Sept of 2008.
Gerald Celente suggests we all go back to the basics. I'm baking bread at this moment. My cost... 25 cents. I have Snow Peas growing in my back yard garden. Another neighbor has corn growing, so parhaps we'll trade Snow Peas for corn at harvest time. I built a solar dehydrator, it's outside, filled with basil.
I have thoughts of a small, collective community where we all contribute, based on our skills. It can be done, think Jamestown, 250 years ago. The problem is the media would call us a "cult" and our community, a "compound" and then it's only a matter of time before the BATF comes a knocking.
My zip code is majority latino. 50% of them never finish High School. They have no marketable skills and they are getting older, with no jobs avaliable, it's gonna get really ugly around here fast.
9:04 Good post and I wish you luck(collective community is a good idea). I agree the tipping point is after Christmas sometime in January.
ReplyDeleteWith respect I think it would be worst to be 20. Then be in the Depression for the prime of your life 20-40, maybe 45. At least the majority of your life was during 'good times.'
ReplyDeletePersonally, I think when the US goes it goes forever as we know it anyway, not 20 years. There is no way to climb out without wiping the entire slate clean. That will most likely mean a banker dictatorship vs our current oligarchy.
There has never been a nation of more brainless dimwits and probably never will be.
The happiest times of my life was when I was very poor so there is always hope.
ReplyDeleteFlashback to the 60's
ReplyDelete- My first wristwatch, a Timex, made in the USA and it was practically bulletproof.
- My parents drove quality, made in the USA cars.
- The TV was a Motorola, made in the USA.
- Levis were made in San Francisco, USA.
- My mom's sewing machine was a made in USA, Singer. She used her made in USA Iron on the shirts, no such thing as "wrinkle free" back then.
- My Boy Scout knife was made in the USA
- Colman camping gear, all made in the USA
- Our Philco radio, made in the USA.
- My Schwinn Stingray, made in the USA
We used to joke about how stupid it would be to buy anything made in Japan. The quality was as bad as it gets, a bigger joke would be if the tag said made in China.
My dad only had an 8th grade education. As the oldest boy, he had to go to work to help support his family. This educational deficit did not keep him from finding a job. He was always employed. He was "Joe Lunch bucket" all the way. If my dad were 20 years old today, I fear all he could look forward to is poverty or prison. Even the military expects you to have a High School diploma.
It scares me really bad, knowing just how clueless the majority of this current crop of young adults are. They know nothing about American history, nothing about world history. They could not find Copenhagen on the map if their life depended on it. They can't read or do basic math. Cudos to those who did study hard and go on to college, but your class of young people is very small indeed.
1:02 I agree fully with your 60's past since I am a 60's child, but the College and student educations today? It will contain a group of uneducated kids that won't be able to write a letter because of the government education laws. KEEP THEM DUMB AND SIMPLE is the criteria.
ReplyDelete9:04 move to New Hampshire with the Free State Project before it's too late. A community of liberty-lovers is well underway there. Safest state multiple years in a row now.
ReplyDeletehttp://freestateproject.org
USA deserves a depression to wake up sheep that they can't eat money after all.
ReplyDeleteWhat recession? What depression?
ReplyDeleteIf anyone depressed, print money like I do, stupid!