Thread: why can't another Great Depression happen again?

I keep hearing "oh, we've learned lessons from the last Great Depression' to not let it happen again.

Tell me - how is it that it cannot happen again?

If you look at my posts over the past few months I have been predicting another depression. While the MSM debates recession, the rest of us know we have been in a recession for nearly 2 years now. Now with the NYSE dropping 400 pts this morning and the Fed stepping in and cutting rates an unprecedented 3/4% which is about the worst thing they can do long-term. It's for that same reason post tech-bubble that we are in the position we are in today, but we didn't learn then. The scary part is the housing bubble DWARFS the tech bubble.

So we have a 3/4% rate cut which will simply bring about a short term boost, but it will continue the long-term trend of devaluing our dollar and causing inflation.

Funny how there is only one candidate who points all this out. He has for years and all his predictions are coming true, yet the MSM brainwashed masses laugh at him.

Just remember people, you still have a chance here if you have the brains and balls.

I don't see what we should try to avoid it. We have the right ingredients to come out of it. Let's see...

They had work programs, we have Work First.
They had soup lines, we have food stamps.
They had WW2 to spring them out of it, and, gee, we have a war of our very own already!

Everything we need to solve this the socialist way.

When maybe if we'd never gotten into the bad habit of looking to Uncle Sam
for handouts, of waiting for Keynesian spend economics to right every minor recession we even suspected we might have, of letting the government meddle in the interest rates with Federal Reserve, then maybe we would not have to face a second Great Depression at all!

Originally Posted by Solon

I don't see what we should try to avoid it. We have the right ingredients to come out of it. Let's see...

They had work programs, we have Work First.
They had soup lines, we have food stamps.
They had WW2 to spring them out of it, and, gee, we have a war of our very own already!

Everything we need to solve this the socialist way.

When maybe if we'd never gotten into the bad habit of looking to Uncle Sam
for handouts, of waiting for Keynesian spend economics to right every minor recession we even suspected we might have, of letting the government meddle in the interest rates with Federal Reserve, then maybe we would not have to face a second Great Depression at all!

what is your point in this post?
I asked a question: why can't another great depression happen again?
I keep hearing that we've learned lessons from the previous 1. I maintain that we haven't.

Originally Posted by The_Bear

what is your point in this post?
I asked a question: why can't another great depression happen again?
I keep hearing that we've learned lessons from the previous 1. I maintain that we haven't.

I don't think you caught the sarcasm in his post.

Originally Posted by The_Bear

what is your point in this post?
I asked a question: why can't another great depression happen again?
I keep hearing that we've learned lessons from the previous 1. I maintain that we haven't.

My point is that while we have everything FDR used to spring us out of the last Great Depression, it has done nothing to keep us from sinking into this one.

Originally Posted by Solon

My point is that while we have everything FDR used to spring us out of the last Great Depression, it has done nothing to keep us from sinking into this one.

ok.
all I'll say is that you can never apply the precisely same formula of policy to two different eras, times. So don't try.

Originally Posted by The_Bear

ok.
all I'll say is that you can never apply the precisely same formula of policy to two different eras, times. So don't try.

I say that it is the the residual "solutions" to the Great Depression that have allowed us to slip (dive, more like) into this one. Political meddling in economics has proven to be a temporary respite at best. The lesson we should learn is to not meddle, and let the Free Market (which is being restrained little by little, so as to make it no longer, in essence, free) do what it does the best.
The pendulum always seeks equilibrium, and so does the market. When something holds the pendulum back from swinging, then forces build that will eventually break away from its restraints in a more violent, tearing swing than if it had merely been released in the first place. This depression? The result of using government actions to prevent many smaller recessions.
And so, I say, nothing SHOULD be done to prevent this massive market correction. The government should keep their little pawsies off it. Wait, what have I been smoking? Like that's ever going to happen.

Originally Posted by Solon

My point is that while we have everything FDR used to spring us out of the last Great Depression, it has done nothing to keep us from sinking into this one.

I'll go even farther and argue the policies FDR introduced didn't even get us out of the great depression. In fact it prolonged it. Only WWII ultimately got us out of the GD, but FDR's New Deal left us with a hugely inflated government and all the mechanisms in place to slowly move us towards another, and possibly far worse, depression. Yet the government controls what is taught in school so FDR is falsly credited with getting us out of the GD and Keynesian Economic principles are taught as if they are the only accepted economic principles. There's no surprise here.

Well its not that there can't be a great depression again but it will take a lot more than just a stock market crash to create one these days . The thing to keep in mind is it will be a world wide deppression not just the US if it were to happen . It is very unlikely as long as money is cheap .