My Photo

MotherPie Recommend

  • Motherpierecommend_4

Additional

  • www.flickr.com
    NYCMotherPie's photos More of NYCMotherPie's photos

RSS & ATOM FEEDS

« Sunday Soapbox: Unhealthy Livestock Practices... | Main | Bringing Cattle to Market Long Ago... »

February 24, 2009

Comments

It's not good anywhere, frankly.

Did you read about the ELECTRONIC run on the banks that our country experienced in September? According to Rep. Paul Kanjorski (D) (PA-11), in mid-September 2008, the United States of America came just three hours away from the collapse of the entire economy. In a span of 2 hours, $550 billion was drawn out of money market accounts in an electronic run on the banks.
Although we longer see lines of people in the streets, we have already had a RUN on the BANKS. We are cooked. I think this will soon make the Great Depression look like child's play. Here is the info on the run on the banks: http://www.dailykos.com/storyonly/2009/2/9/234340/6189/142/695504

The drop in GDP now is nowhere near the drop in the Great depression. Unemployment now is 7.2%, in the Depression it was over 3 times that high, peaking at 25% plus. In 1932, the stock market FINALLY bottomed out, at an 89% loss off of the highs. Today we are still in the 45% range (less than half of the previous largest loss). If the Dow dropped 89% off the highs of 14,100 , we would see a 1,500 Dow and we are over 7000. In the depression over 9,000 banks failed. In 2008 we had about 25 total and all were taken over and insurance covered depositors. Even though the Dow average is way down in the low 7,000's , we had never even passed 7,000 until 1997. So maybe we take a step back to where we were a few years ago, but this is nowhere near the Great Depression. Which points out, if it is this hard on us today, how bad it must have been back then. Added to that there was little help anyone could seek.

I read that property crimes such as robbery are increasing as well.

We got to see people rushing IndyMac about a block from my husband's office in Pasadena, CA. Very sad. :(

Obama has to move very fast. Which he seems to be doing. Getting the stimulus package past the Republicans was a major achievement. Some of the specific measures in that bill will help my children and grandchildren.

The protesters were out in front of IndyMac again today, and I snapped some pictures. You can see them on my blog at http://www.kchristieh.com/blog/?p=1236

Things do tend to be spiraling so fast... unfortunately downward.. and no up right now. No, the numbers may not be as deep as the great depression... but we may looking at new economies of scale.

The comments to this entry are closed.