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Originally Posted by ZenGum
Although I notice they say the stock market fell by exactly 22.6% on October 28, 1929 AND October 19, 1987. If that is correct, it is a most curious coincidence.
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Not coincidence according to research on this subject identifying factors such as weather. A topic not relevant to a far more serious problem.
For any American - living well this past eight years? Do you measure your well being based upon daily consumption? Or realize your real net worth?
Bruce's citation notes a 15% increase in credit card debt. So what happens when credit card interest rates exceed 22% and 25% - as lessons from the 1970s suggest?
When George Jr took office, the average American owed the equivalent to 80% of disposible income. Today that number is between 120% and 140%. Debt increased that dangerously high. Meantime (with inflation) the average American income dropped 2%. Finance markets suggest a probability of the worst recession since WWII.
Did I get your attention? You may still have a few years to protect yourself.
From the Washington Post of 23 Oct 2008:
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Job Losses Accelerate, Signaling Deeper Distress
... for many companies, the pullback in hiring is not a direct result of tightening credit. Rather, firms simply don't know whether their own customers will be affected by the financial crisis; as a result, they want to hold their breath and delay hiring decisions until they have a better sense of the future. ...
What's particularly noteworthy, Holley said, is what's happening in Phoenix. Job applications have held steady, but since September more applicants have had backgrounds in general labor and warehouse distribution. That's unusual because warehouse and logistics jobs usually hold steady in the fall to support retailing for holiday shopping.
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Job loses are currently defensive in nature. The inevitable inflation has not yet appeared. You may have two years to get secure.