A very important blog
nuf2 did a blog this evening that expressly or impliedly touches on the key issues we face. To extrapolate the consequences is to understand how severe the crisis ahead we face.
The factors we are dealing with in no way resembles the issues leading up to The Great Depression. As a matter of fact, in many ways, they are the polar opposite so the remedies being applied are actually making the problems much worse.
In the Twenties, most of our citizens had relatively little debt. Down payments on houses were 30% or more. Mortgage amortizations were often under ten years. Consumer Credit was relatively non existent compared to today. Extended families lived together allowing for a much lower cost lifestyle. Our industries were growing with the invention of the automobile and other important products. Without too much analysis, one could reasonably compare America pre Depression to India and China today.
But something happened between then and now......and not just in America. The consumer started to borrow. Cities and States borrowed more and more. The economy became dependant on borrowing to create money, create jobs, and create sales. Few realize just how dependant. Once more realize, more will understand Alstry.