Quote:
Originally Posted by HalveBlue
Fair enough.
However, I think if you studied economics a little more closely you'd realize the serious and complex shit we're in.
Keep in mind, in 2008 the estimated U.S. GDP decreased around 2 trillion dollars from the previous years GDP. That's just a hair under 15%.
The Great Depressioin saw GDP decline from over 800 billion dollars in 1929, to just over 600 billion dollars in 1932. The U.S. effectively lost 1/4 of it's GDP in three years, with an average rate of ~8% per year. We lost almost twice that much last year alone.
Also, always remember that market corrections aren't instantaneous. That means the effects of a lot of stuff that's happening now won't become apparent for at least another 3 months.
The state of our economy today imitates quite closely the state of the economy in 1929, if you believe some economists (including Fed Reserve Chairman Ben Bernanke).
I hope you're right, and this thing just blow over.
I really doubt it though.
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I don't know it all. But I know more than that. Its in the area I'm studying for (BBA/MIS).
What I've gathered from all this is this. We know a LOT more than we did back then. We did many things during the depression to make it worse (the government cutting spending and tightening budgets for instance, when it should have been pumping money into the system is one example). Economic principles we know very well today where barely recognized then. Regulation was almost non-existent. Back then they labeled everything a "panic" and thought that things like unemployment would fix itself. There are too many things in place, things that didn't exist or we didn't know about then, for it to happen again.
Bleehhh, like I said. I'll believe the sky is falling when it happens.