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The 2008 Depression?

April 2, 2008

I know the stock market started the year off stumbling out of the blocks. I know that we’ve had a major sub-prime mortgage melt down. And I know that the Bear Stearns collapse was a shocker. But are we headed to a depression when the Fed keeps telling us we’re not yet technically even in a recession? Yeah, tell that to the people who’ve lost their jobs, house, and are on food stamps!

Who Wants Cheaper Auto Insurance?

Food stamps are the symbol of poverty in the US. So with a record 28 million Americans now relying on them to survive is it a sign the world’s richest country faces an economic crisis? Those on food stamps would say YES!

So, is Dow 6,000 a real possibility? Maybe? Conceivable?

Wall Street is in bad times, but Main Street may be worse off. Official statistics show that as a new economic recession stalks the United States, a record number of Americans will shortly be depending on food stamps just to feed themselves and their families. Dismal projections by the Congressional Budget Office in Washington suggest that in the fiscal year starting in October, 28 million people in the US will be using government food stamps to buy essential groceries, the highest level since the food assistance program was introduced in the 1960s.

And where are we getting the money for all this? The same place we’re getting the $12,000,000,000.00 a month to fight the war in Iraq and Afghanistan. We’re printing money! And guess what that means? Can you say INFLATION or maybe STAGFLATION?

What we do know is that the Fed and the government have taken UNPRECEDENTED measures, never before used- for some reason, And I think that reason(s) is not a good one. Time will tell, but our economic engine is sputtering big time and the only question is if we can get it into the shop before it throws a rod!

Written by Ernie · Filed Under Daily Commentary 

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