Great Depression 2.0???

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Originally posted by Stimpy57

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Job/income losses through outsourcing have been going on for a decade or so.

To some extent, yes, but that has extraordinarily little to do with the current recession.

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Originally posted by Stimpy57

The current runup in unemployment is being amplified by the recession. The snowball started rolling some time ago. The states hardest hit, e.g., are the Rust Belters(Michigan,Ohio,etc) and the Overdevelopers(Florida,California,Arizona and Nevada). Where the money was and where the money went.

The states being hardest hit are exactly those that were the most overdeveloped, and that overdevelopment was a result of excessive credit and leverage, which, as I stated, was the original issue for the economic collapse which then precipitated job losses which then leads to more foreclosures, etc.

You know, it pains me to say, but I agree with you.... It's a vicious circle... first we have overdevelopment, which was brought on by excessive credit, now we have job losses that lead to foreclosures which leads to underdevelopment which leads to banks lending less credit.... etc, etc, etc... So, where does President Obama start? There is this $850B stimulus that he is proposing to bring jobs to America... And, of course, there are those that are trying to add limitations like "made in America"... In other words, steel for the projects are going to be made in America... Workers building the bridges, etc, will be Americans... You name it, politicians want everything to be Made in America. You think this will work? There are some people (like business here in America) that think that this will stifle the growth of the global economy by isolating America... And there are even those... Like NOW, that think that women workers will be left out of the recovery effort. What does everyone think? PLEASE try to be respectful, especially as it comes to the female issue.

Well, Obama thinks the US needs government spending to get us out. That's great but it only patches the economy for a little while. The government needed to butt out and let a "free market" economy operate the way it should. Instead of fannie may and freddie mac they should have never been created. Stop bailing out the auto industry and stop forcing banks to buy other banks that are failing forcing the good banks down the tube... yea I'm talking about Bank of America. Instead of the auto bail out, the banking bail out, and no telling whats next; return that money to the U.S. Citizens that have jobs. The economy is in a great mess and that can be seen world wide. When the U.S. economy goes down it effects the world, as seen. My best advice is to keep investing your money in the market, don't pull out your 401k and ride it out. It will turn around and you'll be thankful you invested. If you want to re-finance your house now is the time to do it as well... if you have good credit that it.

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Originally posted by pitch19

Well, Obama thinks the US needs government spending to get us out. That's great but it only patches the economy for a little while. The government needed to butt out and let a "free market" economy operate the way it should. Instead of fannie may and freddie mac they should have never been created. Stop bailing out the auto industry and stop forcing banks to buy other banks that are failing forcing the good banks down the tube... yea I'm talking about Bank of America. Instead of the auto bail out, the banking bail out, and no telling whats next; return that money to the U.S. Citizens that have jobs. The economy is in a great mess and that can be seen world wide. When the U.S. economy goes down it effects the world, as seen. My best advice is to keep investing your money in the market, don't pull out your 401k and ride it out. It will turn around and you'll be thankful you invested. If you want to re-finance your house now is the time to do it as well... if you have good credit that it.

the hell with Bank of America... they are a competitor, anyway... . I agree, though, you need to keep investing your funds in your 401K as I am (but only if you are only 36 like I am). It will eventually turn around... Eventually... I just wonder how long that will be... I wonder about those like my parents, however, that are 60+ that have only a few years before retirement... how about them?

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Originally posted by EricLindros

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To some extent, yes, but that has extraordinarily little to do with the current recession.


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The states being hardest hit are exactly those that were the most overdeveloped, and that overdevelopment was a result of excessive credit and leverage, which, as I stated, was the original issue for the economic collapse which then precipitated job losses which then leads to more foreclosures, etc.

Michigan was in a downward spiral long before the current mess, with job/income losses at the core of their decline. Even here in Ohio it's the counties with the history of job losses/high unemployment that are leading the way in foreclosures.

I agree that huge credit lines/debt are somewhere at the core of our problem. But the inability to manage that debt came substancially from job or income losses, unemployment or underemployment. Toys,time shares,Hummers can be sold. But if you can't find a decent paying job after the trinkets are sold, then you are just out of luck.