"7 Reasons U.S. Needs a Good Depression Now"

[Retire Soon]

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

 

[REWahoo]

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.

 

[MasterBlaster]

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 ?

 

[chinaco]

He was a little heavy on the rhetoric.


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

...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....

 

[Dawg52]

..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!!!!!!!!

 

[Nords]

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.

 

[REWahoo]

REW, did you post this in the comments below his article?

No, but I'd sure like to take credit for it...

 

[Jay_Gatsby]

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.

 

[Independent]

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.

 

[Nords]

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.

 

[ziggy29]

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.

 

[Jay_Gatsby]

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.