According to our latest YoungMoney.com poll 50% of you think that an economic depression is likely, 40% do not, and 10% aren’t sure.
Last October CNN did the same poll: almost 60% of respondents felt like another economic depression was likely.
Here are just a few reasons why we probably won’t see another Great Depression:
Government bailouts. The U.S. government didn’t acknowledge the start of the Great Depression until it was too late. This time we are proving that we will not make the same mistake again. As soon as the recession began a plan was put into place—a lot of money has been spent in bailouts to avoid another Great Depression.
Federal Reserve. The Federal Reserve acted quickly and lowered interest rates. This didn’t happen back when the Depression set in.
FDIC insurance. To avoid panic and make sure everyone was protected Congress raised the amount of FDIC protection from $100,000 to $250,000. This “safety net” didn’t even exist in 1929.
Mortgages. Listen to the news and it sounds like most of America is defaulting on mortgages. This simply isn’t true. In fact, in 2008 only 6.4% of all mortgages were at least one payment behind. In the Great Depression 44% of all first mortgages were in default.
World trade. Right now nations around the globe are working together in an unprecedented fashion to address the financial downturn.
What do you think? Are we heading toward another Great Depression? Why or why not?
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This article was rather comforting.
Yes i believe we are heading into another great depression. People think the free market created these financial bubbles but it wasnt; it was the federal reserve. Same thing happened for the great depression, and now we havent learned anything from our mistakes. Governtment regulations of the free market is what is causeing all this and the sooner people realize this the better it will be. A recession isnt a bad thing its just something that has to happen. It is the markets way of clearing out things that dont work. This in turn allows the market to come back sooner and stronger than with our governtment creating all these financial bubbles. Now we have been in the recession for awhile now and rather than the economy repairing itself and gettign better our government is pushing us right into a great depression. Right now people are taking false hope in these bailout plans. First off all it is is inflation. Its the governments way of taxing the people without letting them know. When money is printed off the printing press all the money then becomes less in value. This meaning the governtment just siphoned off X amount of money from the American people. When the governtment takes money from the people that is called a tax.
Basiclly we are heading right into a depression and these bailouts and handouts are just making it worse.
The good thing about this is that those who watch closely and think wisely about what to do with their money can come out of all this very well off. This will be the biggest wealth change in world history.
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F the depression.
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[...] from $100,000 to $250,000. This “safety net” didn’t even exist in 1929. Will 2009 Bring Another Great Depression? Mortgages. Listen to the news and it sounds like most of America is defaulting on mortgages. This [...]
Depression = yes………….. we are already in one. It’ll be like nothing we’ve ever seen and will be one from which we’ll never completely recover. The US is on it’s knees and things are just too screwed up for it to come back up. The world has forever changed.
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