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12 Ways To Prepare For The Next Great Depression

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April 13, 2008 – Comments (23) | RELATED TICKERS: SKF , SRS , GLD

I am estimating a severe recession. A depression is possible and the greater the expectation of a depression, the greater the likely hood of a depression. The US economy is estimated to be 60-70% based on consumption, if consumers cut back (and they are) the impact will be even more severe. Wallstreet, retail, homebuilding, auto manufacturing are laying off people.

This may pass and be minor event, but I do not think it is. Neither does George Soros. “I consider this the biggest financial crisis of my lifetime,” Mr. Soros said during an interview Monday in his office overlooking Central Park. A “superbubble” that has been swelling for a quarter of a century is finally bursting, he said. (ref "The Face of a Prophet", NY Times By LOUISE STORY, Published: April 11, 2008)

Taken from io9.com 12 Ways To Prepare For The Next Great Depression

Our economic future could be even bleaker than you expect — and last year was the moment to unleash your inner survivalist. If the financial system suffers any more crises of confidence, credit gets even tighter, and the fed falls into a liquidity trap, we could be in for several hardscrabbling dystopian years. Forget maintaining your current shiny standard of living — how will you feed and clothe yourself, in the worst case scenario? We've compiled a few suggestions for things you can do now to brace yourself.

Avoid debt at all costs. If anything, you'll want to save up as much money as you can, in case you have to live off your savings. Thanks to recent changes in bankruptcy law, it's much harder than before for an individual to declare bankruptcy. So if you're stuck in debt with little or no income, you'll still be working for the banks. And as this guy points out, the banks will be hurting, so the moment you miss a payment, they'll be quick to try and liquidate your collateral for whatever they can get.

Get out of your mortgage before the housing market collapses any further. As this site says, if you paid $300,000 for your house and it sells for $200,000, you could end up not owning your house and owing the bank $100,000.

Buy some cheap land in a rural area. Build a house, or just get a used RV. Either way, make sure you own your home free and clear, so you can live rent-free and mortgage-free for as long as you need to.

Go off the grid.
Get your own power generator — or, better yet, some of those solar helium balloons. Or some wind turbines. Don't be dependent on the power company to keep all your necessities running.

Cultivate some skills that will always be in demand. Become a decent electrician, handy-person, carpenter or cook. There may not be much need for someone who understands content management systems during a total economic shutdown, but someone who can build a house will always have a place to crash.

Offshore yourself. As the dollar gets weaker and weaker, U.S. white-collar service workers will be the cheap overseas employees for Europeans and Asians, predicts Robert Scoble in his roundup of how to recession-proof yourself. So as long as someone, somewhere, is still making use of those white-collar service skills (like programming, or customer support) you may be able to offer yourself to overseas companies as a cheaper alternative.

Invest in the ultimate counter-cyclicals. Some industries will always be in growth mode — like any business that caters to the rapidly growing senior population. Also, "sin and comfort" industries, like cigarettes, gambling and booze, do well during downturns and will probably make bank this time around as well. (Too bad booze and cigs are generally part of huge diversified conglomerates these days.) Also, movie companies are quietly bragging that the movie industry had one of its biggest growth spurts ever in the 1930s, as people craved escapism.

Invest in some Euros, or some other currency that's not the dollar. Chances are the U.S. dollar will keep getting weaker, so you'll be better off holding a more stable currency. You could also try investing in gold or silver, but those commodities are already skyrocketing in value.

Have some liquid funds on hand. MSN Money suggests reducing your contributions to your retirement plan or 401(k) (if you have one) so you can put more money into your savings instead. And remember, the banks are still FDIC insured, so your savings are probably safe — but other investments have no such guarantee.

or take part in a community garden in your neighborhood. Try to position yourself so you can get as much of your diet as possible from food you've grown yourself, instead of being hooked on sushi.

Learn to hunt. These fine people claim that hungry people are already hunting small animals in the parks of San Francisco, and during the 1930s deer and squirrels were hunted almost to extinction. Learn how to trap, kill, prepare and eat a squirrel now, so you'll be ahead of the curve.

Stockpile medications. Your biggest problem, in an economic meltdown, could be getting health care. If you're dependent on prescription meds, try to get some extra pills now so you'll have some on hand later. Just make sure you're always taking the oldest meds you have, to minimize the risk of taking expired pills, these folks advise.

And hey, here's a meeting coming up in New York on how to "prepare and profit" from the next Depression. If any of our readers are in NYC, please please go to the meeting and tell us what they said, so we can learn how to turn abject economic misery into pure lovely gravy.

http://io9.com/378581/12-ways-to-prepare-for-the-next-great-depression

23 Comments – Post Your Own

#1) On April 13, 2008 at 2:35 AM, abitare (35.58) wrote:

Of interest comments here:

+133 diggs  by PeterODactyl on 04/12/2008

Good thing I still have all this stuff left over from Y2K.

+129 diggs  by coffee200am on 04/12/2008 T

hey said this stuff back in 1992, 87, 78, 76, 74.............................

+97 diggs  by GhostWithToast on 04/12/2008

Learn to hunt.
Stockpile medications.
Go off the grid.
Is this an earthquake or a recession?

+83 diggs  by uiguy3 on 04/12/2008

1.live under a rock for many years
2. After years of needless suffering depression finally comes
3.????
4. Laugh in their faces and say I told you so
5. Profit
6. Realize you wasted half your life waiting for the depression and you're still living under a rock (both figuratively and literally)

+76 diggs  by CapCzar on 04/12/2008

If America has to turn to eating squirrels in order to survive we are in some major sh*t.

+70 diggs  by tont0r 15 hours ago

12 Ways to be a ***** idiot. I know digg loves some sensational *****, but this article is a ***** joke. It basically says 'sell your house, quit your job, move to the middle of the sticks and eat yourself some squirrels in case something happens'.

+47 diggs  by Ricemanstm on 04/11/2008 It's the less skilled workers that will most likely end up paying the price. Stay in school and stay off drugs kids!!!

+44 diggs  by techmoney 14 hours ago Invest in the four B's - beans, bread, bullets, and booze.

+44 diggs  by StingingNettle on 04/12/2008 Old Fashion Squirrel Stew: Salt and pepper squirrel to taste. Boil in water until very, very tender. De-bone. Take 1/2 cup of cooled Liquid in which the squirrel was cooked and make dumplings with self-rising flour. Put de-boned squirrel back in broth and add cut strips of dumplings to broth and squirrel while cooking. Add a little butter; and if you wish, you may drop 3 or 4 eggs into the mixture. Do not stir until eggs are done. (You may add about 1/2 cup of sweet milk to the dumplings before adding eggs if you wish.)

+37 diggs  by icantseeyou on 04/11/2008

I agree, the economy is headed for disaster... whether it's just a recession or more is to be seen.

+34 diggs  by NCSUspoon 13 hours ago

Umm, there is a big differnce between a recession and a depression. Find an old person who lived through it and ask them if this is comparable to the depression. You will probably get kicked in the balls. We are no where near a depression, and if you think we don't have protections against it getting that *****, you are dead wrong. It is not a depression and will not be one.

+32 diggs  by polarbobbear 19 hours ago

I donno being a weed grower/seller would probably be pretty lucrative in a depression.

+29 diggs  by macwac 19 hours ago

I don't get how this can have 200+ diggs and not be on the front page and other articles with 20 diggs make it.

Anyway.. if the ***** really hits the fan, start weight lifting and practice your self-defense moves; crime will probably increase and as a digger your probably not the strongest..

+28 diggs  by vertinox 13 hours ago

A recession is where you stand in unemployment line all day long to get money to pay the bills.
A depression is where you stand in the food line all day long so you don't starve to death.

+28 diggs  by PMG2007 on 04/11/2008 I spoke with my wife about leaving our home and buying an RV and she laughed at me. However, this was a great article and I do think it is a very scary time for the US economy

+26 diggs  by headnickels 22 hours ago

you could run a presidential campaign that you have no chance of winning, get millions of dollars in donations fueled by manic internet users, hide the cash in offshore accounts, and retire.

for all the stupid people out there, that was a joke

+26 diggs  by Lutremi on 04/12/2008 Maybe it's both.

+24 diggs  by RedStateRetard 14 hours ago

Lyndon LaRouche will be right this time! Or maybe the next time...

+23 diggs  by 1randomguyO8 21 hours ago

Man has nothing to fear except, fear itself.

+21 diggs  by robharper 13 hours ago

"Learn to hunt"...!? Are you ***** serious?
Sounds like advice to survive the Armageddon, not an economic downturn.

+21 diggs  by CrazedLeper 13 hours ago

Here's a suggestion that's guaranteed to work for *everyone* who does it: Stop wanting or needing everything.

+20 diggs  by PANTONE285 13 hours ago

In short : become a redneck.

+18 diggs  by serpentor 12 hours ago

Thank you. This article reads more like Y2k sensationalist drivel from '99. And there were more like it in the 2001 mini-recession. Yes the sky is falling people.... just like it did for Y2k and after the dot com crash..

+17 diggs  by dweeb79 18 hours ago

If you need to get drunk only drink Keystone Ice and Natural Ice.
If you need to go to a bar make sure you pregame at home first.

+17 diggs  by OwdenBowden on 04/11/2008

As an Financial and Real Estate Analyst I have been seeing this coming for a while. Personally we are already in a depression but being Americans - most of us suffer from the Egyptian disease called King and Queen of Denial. I would like to see the author of this review the comment section because there are items in there that are very important to the list and belong on that list A.S.A.P.

 

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#2) On April 13, 2008 at 2:47 AM, vicpicks (< 20) wrote:

Anyone who quotes George Soros (whether what he says is legit or not) and then says we need to "learn to hunt" is a scaremongering idiot. Sorry, but this post is pathetic.

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#3) On April 13, 2008 at 2:48 AM, vicpicks (< 20) wrote:

Anyone who quotes George Soros (whether what he says is legit or not) and then says we need to "learn to hunt" is a scaremongering idiot. Sorry, but this post is pathetic.

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#4) On April 13, 2008 at 2:57 AM, Tastylunch (29.29) wrote:

I'm in pretty good shape then. All i need to to go off grid, offshore myself, learn to hunt and stockpile meds and I'm all set.

Let's hope it's not a depression like I fear  that it's being mismanaged into, but if it is my business should be better than most. My grandfather instituted a strict no debt/ no loan policy during the last depression that we still honor to this day. It's cost us a lot of opportunities in the past but right now it looks pretty nice :-) 

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#5) On April 13, 2008 at 3:06 AM, abitare (35.58) wrote:

Another good comment:

 

by BeauZeau at 12:28 PM on 04/11/08 Reply by Email *

Follow the crowd and get trampled. When sci fi nerds are talking about buying gold and euros its time to do the opposite. The increase in the euro is a disaster for Europe, their entire industrial sector is now priced out of the world market. The euro cannot hold at its current level, let alone increase.

And buy gold? The real question about any coming depression is will it be a hyperinflation blowout or a deflationary blowout. If its the later then people buying gold could be in for a rude shock. Remember when housing was seen as a hedge against inflation? And how did that work out? You can't eat gold.

 

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#6) On April 13, 2008 at 3:40 AM, camistocks (< 20) wrote:

I consider this type of post typical of a very important bottom.

I mean, are you really serious about what you are posting? I just can't believe this stuff... It's a kind of "the end of the world" type posting. Maybe there's a possible Mad Max scenario following... c'mon... Learn hunting...? Give me a break. We don't live in a dictatorship like environment, where your scenario maybe might apply.

Forget those diggs, they are worth nothing. You just want to hear bad news and be confirmed...

I would disagree of investing in Euros at this point, as the ECB is going to lower rates sooner or later. Instead, buy US dollars. The US dollar is one of the cheap assets around. The Euro is overpriced.

Gold is overpriced. Too many doomsdayers loving it.

George Soros himself is a bit of a Jim Cramer. He changes his mind very quickly.

Debt is good, as long as it is not exaggerated.

 

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#7) On April 13, 2008 at 4:08 AM, abitare (35.58) wrote:

vicpicks,

Thank you for the reply. I have said it before, fear sells.

scaremongering idiot

You mean scaremongering idiots - idiots plural. The Depression discusion has come up several times in the press recently. Soros is kind of famous, has a decent track record in finance? Ignore Soros? Think that Soros statements in the NYT have no impact or meaning? Go ahead...

FYI - George Soros has: spoken at Davos recently, the NYT article calls Soros a "Prophet", Soros has a new book, has recently appeared on CNBC, FT and Bloomberg. I guess people might care what he has to say.

Actually, I believe it is a decent idea to "learn to hunt" and to own a gun/guns. I could careless if you do not.... Some Germans fled to Argentina in 1940, some hid in a bunker with Hitler 45' waiting for the "super weapons" to save them from the Russians. Sometimes being scared can keep you alive?

post is pathetic.

We will see, only 2 Recs? I post to educate and entertain. I would WAG this post does pretty well. It is both educationial and funnnnnyyyyyyyy.....

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#8) On April 13, 2008 at 5:02 AM, abitare (35.58) wrote:

vicpicks,

Thank you for the reply. I have said it before, fear sells.

scaremongering idiot

You mean scaremongering idiots - idiots plural. The Depression discusion has come up several times in the press recently. Soros is kind of famous, has a decent track record in finance? Ignore Soros? Think that Soros statements in the NYT have no impact or meaning? Go ahead...

FYI - George Soros has: spoken at Davos recently, the NYT article calls Soros a "Prophet", Soros has a new book, has recently appeared on CNBC, FT and Bloomberg. I guess people might care what he has to say.

Actually, I believe it is a decent idea to "learn to hunt" and to own a gun/guns. I could careless if you do not.... Some Germans fled to Argentina in 1940, some hid in a bunker with Hitler 45' waiting for the "super weapons" to save them from the Russians. Sometimes being scared can keep you alive?

post is pathetic.

We will see, only 2 Recs? I post to educate and entertain. I would WAG this post does pretty well. It is both educationial and funnnnnyyyyyyyy.....

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#9) On April 13, 2008 at 5:06 AM, abitare (35.58) wrote:

camistocks,

I consider this type of post typical of a very important bottom.

The housing implosion is just being, the largest amount of resets happened in Mar 08. Housing deflation will take years to work through. GE (3rd largest US Corp) numbers were DOWN, and unemployment numbers were bad.

I mean, are you really serious about what you are posting?

I report you decide. I am bearish on EVERYTHING.

"the end of the world" type posting.

It is amazing the lack of knowledge on financial history. When does a recession or even a depression become “Mad Max” or "the end of the world" ? It does seem people cannot even fathom a downturn in the economy. The US stock market has barely dropped in nominal terms.

Learn hunting...?

I crossed a bridge in Istanbul, Turkey (in 2005) on both sides of the bridge where guys fishing almost elbow, to elbow to each other. I could not understand how they kept the lines from getting tangled. Why where there so many guys fishing? Because unemployment is high, opportunities are low and fish are food. Most Americans cannot even fathom a slow down, it is going to be very tough reality.  

where your scenario maybe might apply.

Not my scenario, read George Soros and the other author.

You just want to hear bad news and be confirmed...

I prefer Santa Claus or “Goldie Locks” economy, but they are not real. And neither is a prolonged “consumption based economy” or a perfect economy absent of a business cycle.

I would disagree of investing in Euros at this point,

Concur

Instead, buy US dollars. The US dollar is one of the cheap assets around. The Euro is overpriced.

Yep, and it is going to get cheaper.

George Soros himself is a bit of a Jim Cramer.

No, wrong Soros has an AWESOME track record. Cramer is a journalist/lawyer. 

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#10) On April 13, 2008 at 10:04 AM, nuf2bdangrus (< 20) wrote:

What are diggs?

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#11) On April 13, 2008 at 11:58 AM, abitare (35.58) wrote:

nuf,

digg.com is website. If you like someones comment you cn give it a thumb up or down (a digg). It is like a rec on CAPS. 

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#12) On April 13, 2008 at 2:24 PM, wolfhounds (29.21) wrote:

Great way to get responses and recommendations.  HaHa!!

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#13) On April 13, 2008 at 7:03 PM, abitare (35.58) wrote:

wolf,

;) makes life easy.

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#14) On April 14, 2008 at 12:53 AM, lquadland10 (< 20) wrote:

America's Comptroller quits because we will be bankrupt by 2057. Store sales for my company down 50% in 3 mos, and getting slower. Went shopping on Saturday and saw 12 empty parking spaces in the front of the store. In one hour I only saw about 60 people and clear sailing down the isle. Unheard of 8 mos. ago. Companies are hiring people for $6.00 an hour which by the way was what the starting pay was 14 years ago. Our central bank has devalued the dollar so much it is now worth 30 cents for every dollar you have. Oh yea, and Bill Gates got Congress to allow more Visa's for workers from other countries to come work here. Wasn't that so sweet of him?  Need I say more?  DE NILE ain't just a river in Egypt.  Then listen to this it explains it better than I can.      

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#15) On April 14, 2008 at 1:09 AM, abitare (35.58) wrote:

lq,

Save money, try and stay employed. I never did understand the open borders thing. Especially, in UK where you are on a crowded little island.  

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#16) On April 14, 2008 at 1:50 AM, lquadland10 (< 20) wrote:

Hey aba, How are you? I pay cash save 75% and 0% dept. I know you don't like susie orman but I listened to her and no cc dept. only 1 car payment but that is my son's and he pays for that. House is paid for. Now I am taking care of my father but he won't take care of himself. Trying to keep my job by outpreforming the store's average. I wish we were a little island. What country do you hail from now?

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#17) On April 14, 2008 at 12:14 PM, mindmuse (38.92) wrote:

I believe that Martha Stewart recommends that In an urban outdoor environment pigeons are easier to trap and prepare than squirrels, as well as being more versatile in culinary preparations.

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#18) On April 14, 2008 at 2:15 PM, abitare (35.58) wrote:

mind,

Good idea. I ate pigon when I was in France "tastes like chicken". Of note in Thailand, they sell several types of fried spiders, frogs, squid, etc...   

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#19) On April 15, 2008 at 12:11 AM, camistocks (< 20) wrote:

This is a site especially for AC ;-)

http://www.thaibugs.com/edible%20insects.htm 

BTW Fried Squids are fantastic. We eat them too in Europe, it's a speciality in Spain. It's called Calamari. I have also eaten snails. It's a speciality in France (à la provencale) and also in Spain, with a lot of garlic and butter. Delicious!

Spiders? No way...! 

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#20) On April 16, 2008 at 7:34 PM, lquadland10 (< 20) wrote:

Ever read the book Man Eating Bugs: The Art and Science of Eating Insects?

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#21) On April 17, 2008 at 2:30 PM, tmer11 (26.14) wrote:

This was a great April Fool's joke.

 

 

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#22) On April 18, 2008 at 9:12 AM, abitare (35.58) wrote:

camistocks,

Good find. I might try being a vegan before I try insects. But protein is necessary part of the diet.

tmer11,

You have to make up your own mind on these issues. Take what is going on around you and make an accessment. 

I believe in the business cycle. I believe we are heading to a contraction. I am unsure how severe. You can guess, just like me.  Some people, who were prepared for contraction in the late 1920s made significant amounts of money in the 1930s. Some people were displaced. 

 

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#23) On April 18, 2008 at 1:58 PM, thought4 (22.47) wrote:

good post loved the answers

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