Capitol Hill Blue Forums Political Issues Finance, the economy & Economics How will the financial crisis develop?

I am usually not a sky is falling person by IMO the economic situation of the US today is in a mighty precarious position. It is said the darkest hour is right before the dawn and right now it looks to me pretty close to midnight.

Anyone who doubts that we are a year into a Depression, remember, these things do not hit you like a punch in the face; rather, they are more like an untreated boil that slowly festers until body parts have to be amputated from infection....


In October 1929, the stock Market crashed, yet there wasn’t a run on the banks until 1933....

Last year, in this column, I identified the start of the New Depression as November 7, 2007. That was the day that China announced they’d be unloading about $400 billion in US currency they were holding in the form of treasury notes. It was a check in the global economic chess game, and the checkmate came from bad playing on the part of the United States.

Without the Chinese largesse, Treasury Secretary Paulson and Fed Chairman Bernanke – aided by both Congress and Bush, went right ahead and started fixing every problem by printing more money. Between stimulus packages, bank bailouts and, most recently (and most egregiously) the underwriting of Fannie Mae and Freddie Mac, nearly $7 trillion has been added to the existing $10 trillion of national debt. Your dollar is worthless, and the banks that are holding...your assets are insolvent.