The banks will fail, just as they failed in 1929 . . . but worse because this time some of this leverage is as high as 40:1. Insurance? Where is that going to come from? There is no insurance that can cover the cost of the coming bank failure, unless we just print more money. We are two generations removed from 1929. I am talking about Biblical 40 year generations. And when you look at who we were in 1929 and who we are now, you'll realize just how ugly it is going to be. In 1929 there was a stronger base of family values. There was a work ethic that we don't see today. The generation from 1929 - 1969 grew up with a totally different set of values than the generation from 1969 - 2009. The first generation worked their way out of the Depression. Today's generation doesn't understand work. We only understand creative financing and how to live off the next generation. And sadly, that is where we are today. We are at the precipice, and we are going to push our children over the edge because we lived so far above our means and ignored all of the warning signs. We lived just like the Romans in their final days.
Another interesting viewpoint ...great article and don't miss the comments section that follows...the link is, as always, in the title
Wednesday, June 11, 2008
Florida at the Precipice of Depression
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2 comments:
Energy dependence is going be harsh on any attempt at "building" our way out of this crisis. Phil
Indeed...energy is going to be the breaking point. We have ignored the need to develop alternative energy on a large scale far too long to make a smooth transition away from the depleting supply of fossil fuels. Individuals will have to take matters into their own hands, making sure that the resources they need to survive are close at hand when transporting goods becomes difficult, which will be very challenging in urban areas. I think that waiting for our government or society as a whole to come up with realistic solutions is a foolish at this point. Our government is too busy trying to cover up our economic problems for political reasons to have time to find viable solutions, and our citizens are not ready to believe it could really happen here. It's going to be every man or small community for themselves when the carefully cultivated facade of prosperity falls away, and what a terrible thing it will be to watch. I'm becoming more sure every day that I made the right move for my kids, and just in the nick of time. We will be insulated from the worst to some degree in our isolated little community and be self sufficient enough to make it through.
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