Strengthening Constitutional Self-Government

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This Financial Crisis is not the Start of a Depression

Burt Folsom has written a serious piece for the Ashbrook site on the current financial crisis. Folsom explains that while, as Paul Volcker has told us, "the current crisis may be... ’the worst financial turmoil since the Great Depression,’ that doesn’t mean the crisis is following the pattern of the Great Depression. Happily, the two disasters are very different."    

Discussions - 4 Comments

I agree that this does not follow the same exact manner of the first great depression. However, the admitted similarities are what we should be looking at. The FED caused both??? Were the FED not sold to the puplic as a way to maintain ecconomic security? The question that I am wondering about is what value will We be paying for the "bad" assets and what value will the golf buddies of our politicians be charged when they buy them back. I am concerned that there are some people who are going to profit twice of the American people from all this just like in the first depression when after the crash the few familiar names came in and bought up everything at pennies on the dollar.

However, the admitted similarities are what we should be looking at. The FED caused both???

No, the Fed did not cause both.

in the first depression when after the crash the few familiar names came in and bought up everything at pennies on the dollar

Huh? What are you on about now? Names and details, please.

In the first depression high level bankers like morgan and rockefeller quitley left the market. When stocks started to slide a run on the banks happended. When this happended the Fed actually contracted the money supply. What is being proposed now is a vast inflation of the money supply. So in a ecconomic panic back then they contracted; well this is what we are being told that the buyout is to avoid. The are many books out there that suggest the FED caused the depression, but here is a story that quotes Bernanke himself: http://www.wnd.com/index.php?pageId=59405 Then those few men who had got out came back into the market to buy up companies at pennies on the dollar in name of inspiring market confidence. When we finally bottom out...see who is in a position to buy. None of this is discussed in the famed liberal or MSM media that you all accuse of being biased. However, their largest bias comes from the fact that they are owned by the mega corporations who may be benifiting from all this.

Meanwhile, it was just about one week ago that the candidate that this very blog is carrying water for - John McCain - reassured us, with all of his economic expertise, that "the fundamentals of the economy are strong."

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