Dr. Martin Weiss of Money & Markets received a series of urgent questions about the massive crisis swirling all around us. So to help prepare for 2009 he is giving his best answers.
URGENT QUESTION: I see disturbing similarities between this crisis and the Great Depression. Both were triggered by the bursting of massive debt bubbles, for instance. But this time, the government is doing so much more to pump up the economy. So is it safe to assume that this crisis will be a lot less severe than the 1930's?
Answer: No, it's not safe to make that assumption. True, the government's massive intervention is a major factor. but there are also powerful factors that can offset or even overwhelm the government's impact.
*BROADER SPECULATIVE BUBBLES. In the years prior to the Crash of 1929, the bubbles were limited primarily to stock speculation and restricted to a minority of the population. This time, the speculation has engulfed not only stocks but also millions of homes, commercial properties, local governments, corporations, and entire nations.
Next time we will continue with Dr. Weiss and household debt, U.S. a debtor nation and derivatives.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment