The Next Great Depression Looming?

[RickA]

Look Close and compare each gain and decline.

Past (1927 - 1933)

http://img229.imageshack.us/img229/5738/1929crashby0.jpg

Present (Oct 05 - Sept 08)

http://img373.imageshack.us/img373/4610/induew2.png

[jlihs]

I've been wondering if it's possible, but looking at the graphs, it almost seems inevitable. The somewhat comforting news is that I understand there are some "safeguards" in place to attempt to prevent a depression. We'll see if they work. :idunno

[JY11]

The two graphs are amazingly similar. It doesn't bode well for this nation's economy.

[Beautiful Feet]

I am not a financial expert. I would love to hear from someone on this board who is. It does seem to me that there are amazing similarities between what is happening now and what happened back then.

I know that before the Great Depression, people (especially farmers) were encouraged to borrow and establish credit. There was "over production" (I think that is what you call it) of goods. When you watch the TV commercials over the past several years, the credit card companies make it sound so cool just to have that plastic. I get kind of freaked when I go in to stores these days and see stuff amazingly cheap. I know that the company is probably loosing money on the stuff.

I also remember from my history reading that there were home foreclosures, banks shutting down etc. What is happening today has a familiar ring. Kind of scary, isn't it?

But our Lord took care of our parents and grandparents. He will take care of us. We won't have everything we want but will have what we need. Our expectations of what our standard of living should be has gotten way out of hand IMO.

[frodo82801]

The graphs look similar, but what are the percentage changes for each period?

You can find similar looking graphs for each bear market in history, but you won't find the percentage loss that we had in the Great "FDR worsened and prolonged" Depression.

Think about this stuff before you declare it to be the same as the depression. Objectivity.

[Tammy]

I am not good with graphs. How near bottom do you think we are?

[Beautiful Feet]

I don't know if it is the "same" as the Great Depression. But I don't think that people on this board are alone in their concern about the current financial crisis. It is all over the news. Drudge is having a field day. And the OP is not the first I've seen that has openly asked if we are headed in that direction.

[ihurt]

The Next Great Depression Looming?

no. http://i15.photobucket.com/albums/a356/Lilaznchynkboi2010/SmileysGoBad/poker.gif

[Tammy]

The graphs look similar, but what are the percentage changes for each period?

You can find similar looking graphs for each bear market in history, but you won't find the percentage loss that we had in the Great "FDR worsened and prolonged" Depression.

Think about this stuff before you declare it to be the same as the depression. Objectivity.


I am not good with these thing. Where do you find these percentage.

[Tall Timbers]

If you look closely, there are huge differences in the graphs. in the first chart, the part that is showing shows an approx 250% gain in an approx 2 year period.

The second chart shows a 27% to 40% gain in a similar period, depending upon where you choose to measure out to. That doesn't compare too well. If you take both charts back and add 10 or 20 years of previous market activity, that will be telling as well. The current big year for us when we actually had a stock market bubble burst was 1990 which would be more comparable to the crash of 1929. Since then our market has never fully recovered and continues to struggle.