LJWorld.com weblogs Swampyville's - "The Banshee's Cry"
Swampyville's - After the Fall!
Small bank failures will continue to increase and the Wall Street banks will purchase them. They will retain the productive banks and then will closed the unproductive banks, placing more people in the unemployment line. Homes and farms will be foreclosed on and auctioned off, Small Businesses will close down and bread lines will become a daily event.
With future profits looking poor, capital investment and construction will slow or completely cease. In the face of bad loans and worsening future the Wall Street banks will become even more conservative in their lending. Banks will build up their capital reserves and make fewer loans, which will intensify the deflationary pressures. A vicious cycle will develop and the downward spiral will continue to accelerate.
The above is not a prediction of the current economy, it actually happened after the Stock Market crashed in 1929! (Similar to the housing market collapse of today)
Ask the Politically Correct!
Question: What was the "Great Depression"?
Politically Correct Resolution:
The Great Depression was a severe world wide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s. It was the longest, most widespread, and deepest depression of the 20th century. In the 21st century, the Great Depression is commonly used as an example of how far the world's economy can decline. The depression originated in the U.S., starting with the fall in stock prices that began around September 4, 1929 and became world wide news with the stock market crash of October 29, 1929 (known as Black Tuesday). From there, it quickly spread to almost every country in the world. (Wikipedia)
Only a small number of people during the 1920s made false profits from their investments, eventually to lose everything to the Wall Street Bankers. The farmers and industrial worker's earnings stagnated to eventually fall. While this represented lesser costs for companies, it precluded growth in consumer demand. The ability of most Americans to purchase new automobiles, new houses and other goods began to weaken. Herbert Hoover's promise of a "Chicken in every pot and a car in every garage" to get elected in 1928, never happened. In that, most people didn't have a pot to cook in nor a garage to park a car after the stock market crashed. They had been repossessed by the banks.
Banks are the filling stations for the economy. They circulate money and create bogus money through Fractional Banking. Bank created credit represents the biggest element of the money supply. As hundreds then thousands of smaller banks failed between 1929 to 1933, the economy's credit supply dried up. As the smaller banks went down, so too did small businesses, as the small banks called in business loans in an desperate effort not to go under. thus, began an ever widening of bankruptcies, job lay- offs and a great lowering of consumption.
After the Stock Market crashed, stocks were drastically lowered to be bought up by the bigger banks. Before the crash, stocks were over valued (on purpose) at an average of 90 dollars a share. After the crash the average per share was less than 20 dollars. That's what the Wall Street bankers do. Buy Low, create a false boom, Sell High and receive huge profits! (That is currently what Warren Buffett is doing by buying stock in the Bank of American - he's already made hugh profits from his investment in Goldman Sachs Group - that's how the Buffetts and the Soras of the world make their huge profits - they're doing it for themselves and not for the people as they lead you to believe) (BEWARE OF THE WOLVES IN SHEEP'S CLOTHING and BEWARE OF THE SHEEP IN WOLVES CLOTHING)
The Banking/Investment Interests, like Big Oil, have always sent their lobbyists to Congress to insure that the nation's laws are passed/changed to benefit themselves and not the People (Mom and Pop investors).
Since 1913 (Sixteenth Amendment/Federal Reserve Act), we have become a Nation, "OF, BY and FOR the Special Interests"!
"EXIGO SACRA FAMES" (Complete hunger for gold)