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February 20, 2009

Good times, bad times

Just about everyone is very concerned about the economy and the loss of a major portion of their savings. For those of us who grew up in the late 1930s and early ’40s, the tail end of the Depression, it looks like the twilight years will end in depression also.

The good news is look what great times we enjoyed from the early ’50s until 2008. And now we know what a challenge most of our parents faced.

Ed “Gomer” Moody
Kansas City

Comments

Engineer

whispering
The 'foolish, stupid Man" has a PhD in economics and has taught in a University. He knows a great deal more about economics than you or I and, I would bet, Pub 17. What I don't understand is why financially knowledgeable people bought bundles of questionable securities. Sounds as if they were caught up in the boom psychology of "it will grow forever".

whispering_to_kc

"... A very informative and erudite article ..."

Gramm is a foolish, stupid man. You do know he was "held back" for two or three grades in grade/high school? I "like" Gramm's current relationship with UBS and the about to be exposed American/Swiss tax cheats.

Here's a real article, much deeper than Gramm's "it's not my fault" WSJ op-ed ...

http://www.nytimes.com/2008/11/17/business/economy/17gramm.html?_r=1

"They are saying there was 15 years of massive deregulation and that’s what caused the problem," Mr. Gramm said of his critics. "I just don’t see any evidence of it.""

The NYT even pins some of the blame on Bill Clinton and Larry Summers, which should cheer you.

TinaMcG

"Phill Gramm was the top McCain/Palin08 economic advisor.
We dodged a bullet in more ways in one last November." -- Whispering

Damn, didn't we though. When the leftish wing cable media were jumping up and down about Gramm and his connection to the meltdown in October, I was stunned that the news didn't hurt the McCain campaign more than it did. McCain's biggest weakness was the economy, and Gramm was rumored to be his first choice for Treasury Secretary.

So throughout Obama's first month in office, as the markets turn blue from holding their breath, I keep reminding myself that it could be way way worse.

Engineer

whispering
Thanks for the Link. A very informative and erudite article.

whispering_to_kc

Phill Gramm was the top McCain/Palin08 economic advisor.

We dodged a bullet in more ways in one last November.

whispering_to_kc

We'll be close to the bottom when the bankers and their propaganda organs stop blaming the economic failures on Fannie/Freddie, the CRA and the Dems.

When the bankers, Wall Streeters, regulators and politicians finally fess up and recognize their roles we can finally begin to refloat the ship. Until then, we'll only be treading water as the boat's sinking to the sea floor underneath us while the stewards are busy trying to call the missing passengers to dinner.

Here's "The Great Deregulator Phil Gramm" blaming everything on "politicization of mortgage lending and bad monetary policy" in yesterday's WSJ:

http://online.wsj.com/article/SB123509667125829243.html

I conclude therefore that the slide will continue for a while. DOW 6000, S&P500 650 here we come. I hope it stops there.

I wish I could say I bailed 100% out of the market last Spring when I started getting nervous. I, unfortunately, followed the advice of an "expert" to "buy and hold" with a significant portion of the total only to watch my retirement expectations go up in smoke. I suspect many of us who claim we "got out at just the right time" are only making up stories or dealing in small amounts of savings. Good for you, either way.

T. Hanson

Well the depression ended on December 7, 1941. So I guess if you are eagerly waiting for something like that to end the economy disaster then I think we better hold on to our rears.

TinaMcG

As long as our collective consciousness believes we are headed into the dumper, then I guess that's where we're headed. Can we 'hope' our way out of this? Not technically. But believing in ourselves is a first step in doing those things that will prevent us from diving off a cliff. I'm getting pretty sick of all the gloom-doom talk. I'm ready for a bit of optimism, no matter what the markets look like right now.

NoMoreMrNiceGuy

We didn't lose a major portion of our savings, we saw what was coming and shifted our investments to minimize loss. We ended up in the black. Also someone that has say a 401k with company match and has had that in place for any substantial lenght of time should not have lost all of their benefit. The company matches what you contribute and you receive a tax benefit although not as robust as the $13 per week the genius has figured up in a matter of a few days.

 
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