I heard an interesting statistic today..

[Virginia Dare]

on the radio, I haven't verified it yet, but it struck me..so I thought I'd post it for comment.

In 1975 43% of Americans thought we were on the verge of another Great Depression.

[bluerum]

1. The economy sucked back then. No jobs. High oil prices. It was bad -

but it is worse now.

[annabanana]

2. actual oil shortage... lines at the pump... even/odd fill up days...

It was rough. I think those of us old enough to remember it may end up looking back on it longingly.

[Virginia Dare]

3. Interest rates were HIGH...

we weren't dealing with a mortgage and credit bust like we are now.

[proud2BlibKansan]

12. I think it seemed worse then because of the shortage of gasoline

It might be worse today but folks aren't suffering like they did in the 70s.

[Selatius]

4. If Bush hits Iran, there will be stark economic consequences for the entire world.

That's not overstating the possible outcome.

[Virginia Dare]

5. Do you think "people"..

meaning the general American public is more or less worried now than they were then? I haven't heard a sole, except random people posting here who are worried about a Great Depression. I think it's a very real possibility.

[BleedingHeartPatriot]

7. The concept is stated without being fully understood.

I am only just gaining understanding myself, but it seems our current economic woes are more aligned with what has happened, or is happening in Central and South America.

What happened during the Depression was unique to that time.

I mean, now, the NYSE is openly sold to the highest bidder.

MKJ

[Mike03]

8. IMO, the bigger danger is leverage, derivatives and CDOs

that have falsely inflated our sense of worth, as well as years of easy and lax lending that have resulted in most Americans being in debt, and having no savings whatsoever.

Then there are the twin deficits, and our account balance deficit with China in particular but also Europe and Japan.

Then for good measure toss in the 1 to 3.6 trillion that Iraq is expected to cost us.

We are essentially bankrupt. And I don't see this having much to do with Central or South America so much as our largest trading partners, who we are dangerously in debt to. Some economists have gone so far as to declare the United States technically bankrupt because we are hopelessly overextended and have a negative savings rate.

[BleedingHeartPatriot]

11. I must agree, Central and South America may be in debt to foreign lenders but nothing like we are.

MKJ

[Mike03]

15. Virginia, just curious:

Are you--and if so how?--preparing for the possibility of some sort of economic calamity?

[Virginia Dare]

17. To the degree that I'm carrying no consumer debt..

and I'm now preparing to pay off my mortgage free and clear, yes. The rest, I'm not exactly sure *how* you can prepare. I guess stock up on canned goods, etc. Also, I know that I can walk/mass transit to just about every place that I need to get to if need be.

[Mike03]

6. Right now, it's not the fear that scares me but the complacency.

If people were truly scared of a depression, they would not be spending so recklessly, and they would be preparing for a very tough period ahead.

[highnooner]

9. Interest Rates didn;t hit the teens until the Carter years

Still, they were high relative to today.

[Mike03]

13. Specifically, I'm thinking of Greenspan's/FOMC CUTTING of rates,

not the raising of rates.

It was the cutting of rates to 1% that lubricated the lending that has lead to this crisis.

When money is cheap, people borrow beyond their means, and then they spend beyond their means. They buy homes they can't afford.

Higher interest rates, on the contrary, would have staved off this madness.

[Virginia Dare]

18. I agree Mike...

it baffles me why people continue to rack up debt thinking that the carnival ride will never end. I guess they're taking the Scarlet O'Hara approach to life.

[avenger64]

10. That's why the ruling powers were very careful...

.... not to call it a depression. They went with 'stagflation' instead.

[CK_John]

14. Here is the difference, before Bush 41 people played by the economic rules, so the concept of you

take a risk and you win or lose worked. Then Bush41 changed the concept when the government came to the aid of the S&L's and the world of economics changed. Now if you're too big to fail the gov helps out. So everything got bigger and more risky, now Bush43 will say it's the DEM problem and run off to Paraguay.

What happens next is completely up for grabs. No honest person has seen this condition and there are no guidelines to follow.

[Greyhound]

16. They were right. Jimmy Carter headed many of the consequences off

and sacrificed his Presidency to do it, only to have Raygun undo the measures that prevented catastrophe and impose the next round of corporate looting.