Within the span of less than a week, gasoline shoots up to around $5 a gallon (some claim price gouging while at the same time saying the Hurricane caused it, so which is it?), Lehman collapses and Merrill Lynch was bought out by Bank of America. This on top of the Fannie Mae and Freddie Mac bailout that will only cause more harm in the long run. When the fundamentals are out of whack and this is continually ignored, then the recovery should there ever be one will only take longer. The Great Depression lasted about ten years in large part due to the federal government's interference (both Hoover and Roosevelt share blame) to wit, the unemployment rate in 1940 was higher than when FDR first took office. So for those FDR defenders who think he is a God, get off your high horse. Keep in mind that the Great Depression in addition to numerous recessions occurred after the Federal Reserve was created in 1913. Its record speaks for itself. The dollar has loss about 98% of its value since that time. In other words, a hamburger that would have cost a nickel in 1913 would be about a dollar today. You could have bought a house for $5,000-$7,000.
To say the least, it will be some time before this economic recovery takes place and so as long as the people in power keep screwing around, it will take even longer taking many people with them. Indeed, history does repeat itself. I just pray that that history will also mean better times ahead...eventually.
Monday, September 15, 2008
Posted by Chris F. at 8:08 AM