All along this deflating bubble we’ve heard the argument there will never be another Great Depression. Given the size of our country now, it’s diversification, the international marketplace and of course the government’s assurances, I’ve bought the argument.
Now I’m not so sure. A run on the banks helped cause the GD, and now the banks are running out of money on their own. New manufacturing jobs helped end the GD and circulate wealth domestically. Now we import everything, and continue reducing mfg jobs. Granted our trade deficit is actually declining slightly due to a weak dollar, but there is no massive untapped job source or labor force.
What bank is next? I agree on WaMu, and that may start a bank run despite the FDIC.