Originally Posted by 1growingsprout
just my 2c. Today It hit me with Wamu... i dont know why, but it seems 3 biggies went down this week AIG, Merrill and Wamu, thats ALOT for one week.
I think this is the important key that makes this feel much different than, say the 80's. Small banks failed. Interest rates skyrocketed, but that meant that as long as you weren't borrowing you were okay... and I've never been a borrower. The cold war was still a clear and present danger, but we were not in a war that was costing billions upon billions of dollars.
Today, the stakes are higher and different. It's the combination of things. It's the stock market. It's major banks failing... and having multiple failures in a single week as growingsprout says. It's oil issues. It's the war that never wants to end. It's the threat of things like grain shortages, gas prices causing food to hyperinflate, a hard winter, crazy weather (tornadoes in Feb. last year, for example). Threats of terrorism. It's not one thing, for sure.
I grew up in the 70's. I remember the oil embargo. I remember sitting in line for hours with my legs sticking the vinyl in my dad's 59 Mercury to get a few gallons of gas. I remember when "regular" meant leaded gas, not "regular unleaded". I remember the inflation of the 80's very well (was an investor then already). The stock market crash in '87 is imprinted in my memory. This is different.
Typically, a depression is expected about once a century. We're getting due for one. I hope I'm wrong.
WaMu was possible for a while, but it wasn't imminent.
It is eerie for me to see history repeat itself. Near the end of the 8 years of Reagan ending in a stock market crash... 8 years of Bush ending in... economic disaster? Not sure yet.