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View Full Version : Why Washington Cannot Prevent Depression



mick silver
10th November 2008, 12:37
Fear of depression is sweeping the nation.

Millions of Americans are consumed with anxiety, abandoning their old shop-till-they-drop habits, slashing their spending, trying desperately to pinch pennies for the coming hard times.

Thousands of bankers are snapping shut their coffers, tightening their lending standards, hunkering down in anticipation of a massive economic downturn.

Sophisticated investors also see the handwriting on the wall. They're pulling out of hedge funds, selling their mutual funds, rushing their money to the safety of Treasury bills.

Even the established media, often late to see the dangers, is beginning to speak out more loudly ...

CNN Money: "The rapid deterioration of labor markets points to a sharp decline in hours worked and output in the fourth quarter. This is likely to lead to a decline in personal consumption to the tune of 5% or so for that period. Since that makes up about 70% of the economy, the stage has already been set for real GDP to shrink at a more than 4% rate in the fourth quarter."

http://www.howestreet.com/articles/index.php?article_id=7910

mick silver
10th November 2008, 12:40
Prior to the 1930s, the total debt in the U.S. was between 150% and 160% of GDP. Now it's close to 350% of GDP.

I keep seeing the government saying that the GDP is a lot lower, anyone know the numbers for the GDP?