Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
"7 Reasons U.S. Needs a Good Depression Now"
Old 07-05-2011, 11:04 AM   #1
Full time employment: Posting here.
Retire Soon's Avatar
 
Join Date: Nov 2005
Posts: 655
"7 Reasons U.S. Needs a Good Depression Now"

The massive debs that the public is accumulating in order to bail out speculators has become a justification for deep cuts in social programs. The rich are getting richer at the expense of the poor, and as Warren Buffet puts it, "But it's my class, the rich class that's making war, and we're winning."

Jim Grant fears that Wall Street will "Run itself and the rest of the American financial system right over a cliff." Robert Schiller warns, "We recently lived through two epidemics of excessive financial optimism ... and we're close to a third episode."

Paul Farrell believes there is something structurally wrong with our economy in his article linked below and that it is "deep in our character." He cites many credible sources including Jack Bogle from his book, "The Battle for the Soul of Capitalism." Paul thinks we have indeed lost this battle and along with our soul, we've lost our moral compass as America's character is now measured by our net worth.

The article goes on to say that we should not raise the debt ceiling and that a good depression now is far better than a Great Depression later.

7 reasons U.S. needs a Good Depression now Paul B. Farrell - MarketWatch
__________________

__________________
"I went to the woods because I wished to live deliberately... and not, when I came to die, discover that I had not lived."

--Henry David Thoreau
Retire Soon is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 07-05-2011, 11:17 AM   #2
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,074
Quote:
Originally Posted by Retire Soon View Post
Paul Farrel believes...
..we're all doomed no matter what we do and the more black paint he can spread the more people will read his never-ceasing one-note bombasts of pending apocalypse.

Bet Paul was really disappointed the world didn't end as forecast back in May. His outlook on life makes you wonder how he can muster up the courage to get out of bed each morning.
__________________

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 07-05-2011, 11:18 AM   #3
Thinks s/he gets paid by the post
MasterBlaster's Avatar
 
Join Date: Jun 2005
Posts: 4,359
Quote:
Originally Posted by Retire Soon View Post
The massive debs that the public is accumulating in order to bail out speculators has become a justification for deep cuts in social programs. The rich are getting richer at the expense of the poor, and as Warren Buffet puts it, "But it's my class, the rich class that's making war, and we're winning."
The entitlements were always going to be a problem when they came due. And it's not like we haven't known about this for decades. So now that the bill is coming and they have spent the "trust fund" we get rhetoric like the linked article.

Was Hugo Chavez the ghost writer ?
__________________
MasterBlaster is offline   Reply With Quote
Old 07-05-2011, 12:11 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2007
Posts: 5,072
He was a little heavy on the rhetoric.


But I agree with the general point he is making in this statement:

Quote:
...And what about the so-called Great Recession of the 2008 credit meltdown? Didn’t work either. In fact, made matters worse: Wall Street got richer by stealing from the other 98% of Americans, the middle class, the poor. And now their conservative puppets in Washington want to make matters worse, widening the wealth gap further to benefit the Super Rich.
Seems nobody really gives a damn about our great nation any more. America’s now a capitalists anarchy: “Every (rich) man for himself.” Proxy battles are fought by high-priced lobbyists in a broken political system....
__________________
chinaco is offline   Reply With Quote
Old 07-05-2011, 01:26 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dawg52's Avatar
 
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 7,432
Quote:
Originally Posted by REWahoo View Post
..we're all doomed no matter what we do and the more black paint he can spread the more people will read his never-ceasing one-note bombasts of pending apocalypse.

Bet Paul was really disappointed the world didn't end as forecast back in May. His outlook on life makes you wonder how he can muster up the courage to get out of bed each morning.
REW, did you post this in the comments below his article?

By the way wipe that stupid smile off your face in your press photo...because we who have the power to see thru that smile know that you are not happy with anything these days. Apparently someone did something in your cornflakes. Get a life and just go away!!!!!!!!
__________________
Retired 3/31/2007@52
Full time wuss.......
Dawg52 is offline   Reply With Quote
Old 07-05-2011, 01:37 PM   #6
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,616
Quote:
Originally Posted by Dawg52 View Post
REW, did you post this in the comments below his article?
By the way wipe that stupid smile off your face in your press photo...because we who have the power to see thru that smile know that you are not happy with anything these days. Apparently someone did something in your cornflakes. Get a life and just go away!!!!!!!!
Let's just hope it wasn't one of the Farrell family.

It must be tough to earn a living as a financial columnist these days. No one will believe Farrell if he says things will work out all right, John Mauldin has already staked out the middle ground of "muddle through", Scott Burns & Suze Orman have already warned that we're going to have to work until we're 80, and Jim Rogers has already forsaken America to welcome our new overlords move to China.

What's a (still working) writer to do? The only way Farrell can call any attention to himself is if he behaves even more outlandishly than a severely-depressed Grantham.
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 07-05-2011, 01:45 PM   #7
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,074
Quote:
Originally Posted by Dawg52 View Post
REW, did you post this in the comments below his article?
No, but I'd sure like to take credit for it...
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 07-05-2011, 01:47 PM   #8
Thinks s/he gets paid by the post
Jay_Gatsby's Avatar
 
Join Date: Oct 2004
Posts: 1,719
The U.S. doesn't need a good depression. The recession, stock market pullback and housing crash have forced many Americans to reevaluate their spending habits. Just saw a news story that Americans are saving much more than the historical average. While the U.S. economy was built on consumption, it was also built on innovation by many who learned to do more with less. This latter aspect of economic growth is where the future lies.
__________________
He had one of those rare smiles with a quality of eternal reassurance in it . . . It faced, or seemed to face, the whole external world for an instant and then concentrated on you with an irresistible prejudice in your favor. -- The Great Gatsby, F. Scott Fitzgerald
Jay_Gatsby is offline   Reply With Quote
Old 07-05-2011, 02:17 PM   #9
Thinks s/he gets paid by the post
 
Join Date: Oct 2006
Posts: 3,812
I assume this guy is primarily into making money by preaching doom and gloom. That said, I can still agree with lots of his words on why things are going badly.

I just don't see any support for the notion that a Depression would make it better. I looked at his list of seven and didn't find one that was credible. About the only result of a Depression would be that even more Americans would be dependent on the government for the necessities of life.
__________________
Independent is offline   Reply With Quote
Old 07-05-2011, 02:18 PM   #10
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,616
Quote:
Originally Posted by Jay_Gatsby View Post
Just saw a news story that Americans are saving much more than the historical average.
Well, if we don't cut that out pretty darn soon then we're going to have to lower interest rates again, and keep doing it until everyone straightens up and does their part for the consumer economy...*

* As Justin used to say, this is sarcasm.
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 07-05-2011, 02:18 PM   #11
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
Quote:
Originally Posted by Independent View Post
I assume this guy is primarily into making money by preaching doom and gloom. That said, I can still agree with lots of his words on why things are going badly.

I just don't see any support for the notion that a Depression would make it better. I looked at his list of seven and didn't find one that was credible. About the only result of a Depression would be that even more Americans would be dependent on the government for the necessities of life.
I don't buy this sort of Henny Penny-talk, at least not in the extreme, but perhaps the author's point is that we need to definitively "hit bottom" before we can really start a meaningful and sustained recovery.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 07-05-2011, 04:03 PM   #12
Thinks s/he gets paid by the post
Jay_Gatsby's Avatar
 
Join Date: Oct 2004
Posts: 1,719
Quote:
Originally Posted by Nords View Post
Well, if we don't cut that out pretty darn soon then we're going to have to lower interest rates again, and keep doing it until everyone straightens up and does their part for the consumer economy...*

* As Justin used to say, this is sarcasm.
Perhaps not. IIRC, the high savings and low consumption rate in Japan are prolonging its economic woes. Consumption by itself is not bad. Consumption without savings to pay for such consumption is very bad.
__________________

__________________
He had one of those rare smiles with a quality of eternal reassurance in it . . . It faced, or seemed to face, the whole external world for an instant and then concentrated on you with an irresistible prejudice in your favor. -- The Great Gatsby, F. Scott Fitzgerald
Jay_Gatsby is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 10:38 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.