Fannie and Freddie: A Run on the Bank? - Page 2

william the wierd · 07-14-2008, 09:09 PM

With the securitization of debt and the sale of those securities overseas the classic bank-run/panic -> great depression won't happen this time for several reasons:
By the pre-1980 unemployment measure we have been in a great depression since about 2000. (Non-agricultural employment reached its pre-1930s peak in 1927, civilian labor force [including agricultural unemployment] reached its peak in 1923. The numbers cooking goes back at least that far.)
By the pre-1990 inflation measurement negative GDP growth goes back to at least 06.
The Fed has not controlled US currency since the emergence of the euro-dollar market in the late 50s/early 60s.

In other words baling wire and chewing gum will be applied until the house of cards collapses and the 1930s look good. On the otherhand unless suicidal stupidity is applied it should be a lot better than the 1780s or 1720s.

anonnymous · 07-14-2008, 09:22 PM

Quote:

Originally Posted by william the wierd

With the securitization of debt and the sale of those securities overseas the classic bank-run/panic -> great depression won't happen this time for several reasons:
By the pre-1980 unemployment measure we have been in a great depression since about 2000. (Non-agricultural employment reached its pre-1930s peak in 1927, civilian labor force [including agricultural unemployment] reached its peak in 1923. The numbers cooking goes back at least that far.)
By the pre-1990 inflation measurement negative GDP growth goes back to at least 06.
The Fed has not controlled US currency since the emergence of the euro-dollar market in the late 50s/early 60s.

In other words baling wire and chewing gum will be applied until the house of cards collapses and the 1930s look good. On the otherhand unless suicidal stupidity is applied it should be a lot better than the 1780s or 1720s.

you know you are right but for the suicidal stupidity. I think it is about to be applied to the commodities market.