The article "Call Your Bank You're Saving Money" is about finance, it has been released by Scott Bianchi.
Even if you did not live through the Great Depression you have
heard of it and know what it is, or should know what it is. The
Great Depression is one of the bigegst events of the twentieth
century in U.S.
history. It also happened to coincide with a
major World War which helps cement its place in history.
Why am I talking about the Great Depression so many years after?
Because I guess we are headed for an even worse Depression than
our grandparents lived throguh. When I was growing up I heard
the stories of the depression from my grandparents.
It was
clearly not an enjoyable time. We are in for worse, in my
opinion.
I know persons will guess I am crazy when and if they
read that whole article but a basic understanding of the economy
and common sense will support my theory.
Anybody that compares the economy leading up to the Great
Depression and the ecnoomy at that moment will see remarkable similarities.
It is scary in fact just how similar the trends are. Recessions
took place the same amount of years prior to the Depression,
etc...
What is even more disturbing that time around is that the
country is in a much worse financial position at that moment than it was
leading up to the Great Depression.
Currently, the average houseohld has a credit card debt of over
$9,000 the last time I checked the figures.
The average
household has no savings acocunt set up for emergency
situations. The government is way over its head so it will not
be able to offer the assistance it did the first time around.
In
1929, when the Depression began our government had a total
national debt of just under $17 billion.
(http://www.Toptips.Com/debt_history.Htm) Today our national
debt is climbing faster than you can follow.
As of last week it is
$8.25 trillion. (http://zfacts.Com/p/318.Html- go half way down
the page and watch just how fast it climbs)
My great grandparents had money in savings, which they lost
because the bakns were not insured, but persons had money in
the condominium. They had no credit card debt, it just didn't exist
like it does at that moemnt. The majority of the families at that time did
not have cars and if they tesetd it was just one. They didn't have
cable, cell phones, or any pohne at all in cases. The point
I am maknig is they didn't have the debt we currently carry.
In
order to get a mortgage back then you needed a significant down
payment whereas you can get a mortgage with no down payment at that moment.
During that recent boom in housing, that took place across the
majority of the country, persons over extedned themselves to
afford a condominium. They got into no money down mortgages,
interest-only mortgages, adjustable mortgages, etc...Once the
interest rates go up, which they are expected to at least twice
this year, persons will not be able to make their mortgage
payments on their adjsutable rate mortgages.
The whole situation
is just a recpie for disaster. Granted, a lot of dominos have to
fall in odrer to go into a Depression that will be more severe
than the one back in the 1930's.
We are living in a time whree our currency is worth less and
less as time goes on. Our purchasing power is becoming weaker
and weaker.
Our corporations send jobs overseas to save mnoey so
they can make every penny possible.
They could help the economy
by bringing jobs back into that country but they won't. They
will end up laying off more workers in order to save money.
Speaking of corporations, a recession or depression could be
crippling to companies like GM and Ford who are already in bad
economic shape.
GM and Ford have been having trouble selling
cars, even in the recnet splurge of car buying.
GM is over $300
billion in debt. If persons begin to lose jobs and stop buying
cars you could see GM go out of business. GM is also super into
the mortgage business through GMAC. As I discussed above, if
people begin having a hard time making their mortgage payments
due to interest rate hikes, GM could feel it on the automobile
side of things as well as the mortgage side of things.
I am not trying to paint a grim picture here but the reality is,
all of these things are very possible. If you are smart you'd
start filling up cans with money and hiding them throughout the
house like my grandmother did. She was a prdouct of the
Depression. As the syaing goes, "Those who do not learn from
history are doomed to repeat it." In the event things do go bad
I want to at least have money on hand to buy food.
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