Home › Forums › Financial Markets/Economics › Volcker: Crisis May be Even Worse than Depression
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February 21, 2009 at 9:42 AM #351752February 21, 2009 at 11:39 AM #351256
jpinpb
Participantdenverite – that’s it exactly, as I commented on the “House of Cards” thread. We lost a lot of jobs and outsourced many. The real estate bubble created jobs: contruction, realtors, appraisers, etc. etc. and we played w/monopoly money and insurance on home loans was exported.
Take all that away and you end up where you started. No jobs. The real estate industry cannot be propped up forever. New and lasting jobs need to be created – and not just a job at McDonalds. That means education, too. People need to be skilled at something.
All that requires work. There won’t be any easy money as in the dotcom era or the real estate era. Personally, I like to work. But many Americans are lazy (I think that’s why many Mexicans are opportunistic and take the jobs the lazy Americans won’t do – I digress)
So creating jobs and getting an education takes time. There is no overnight fix here. Many people have acquired the easy money lifestyle and it will be a foreign concept for them to actually work to make money.
On “House of Cards” they said pizza delivery guys were making 20k a month doing loans and on This American Life’s Giant Pool of Money, it was bartenders doing loans.
The reality is that only in some kind of mega-bubble can a bartender or pizza delivery guy go out and get a job w/their limited education and make 20k a month. I mean, I don’t know. I’m thinking attorney or doctors make 20k a month, engineers. I’m thinking you better have a nice piece of paper from some school when you make that kind of dough. 20k a month is reserved for someone well-educated.
February 21, 2009 at 11:39 AM #351568Participantdenverite – that’s it exactly, as I commented on the “House of Cards” thread. We lost a lot of jobs and outsourced many. The real estate bubble created jobs: contruction, realtors, appraisers, etc. etc. and we played w/monopoly money and insurance on home loans was exported.
Take all that away and you end up where you started. No jobs. The real estate industry cannot be propped up forever. New and lasting jobs need to be created – and not just a job at McDonalds. That means education, too. People need to be skilled at something.
All that requires work. There won’t be any easy money as in the dotcom era or the real estate era. Personally, I like to work. But many Americans are lazy (I think that’s why many Mexicans are opportunistic and take the jobs the lazy Americans won’t do – I digress)
So creating jobs and getting an education takes time. There is no overnight fix here. Many people have acquired the easy money lifestyle and it will be a foreign concept for them to actually work to make money.
On “House of Cards” they said pizza delivery guys were making 20k a month doing loans and on This American Life’s Giant Pool of Money, it was bartenders doing loans.
The reality is that only in some kind of mega-bubble can a bartender or pizza delivery guy go out and get a job w/their limited education and make 20k a month. I mean, I don’t know. I’m thinking attorney or doctors make 20k a month, engineers. I’m thinking you better have a nice piece of paper from some school when you make that kind of dough. 20k a month is reserved for someone well-educated.
February 21, 2009 at 11:39 AM #351695Participantdenverite – that’s it exactly, as I commented on the “House of Cards” thread. We lost a lot of jobs and outsourced many. The real estate bubble created jobs: contruction, realtors, appraisers, etc. etc. and we played w/monopoly money and insurance on home loans was exported.
Take all that away and you end up where you started. No jobs. The real estate industry cannot be propped up forever. New and lasting jobs need to be created – and not just a job at McDonalds. That means education, too. People need to be skilled at something.
All that requires work. There won’t be any easy money as in the dotcom era or the real estate era. Personally, I like to work. But many Americans are lazy (I think that’s why many Mexicans are opportunistic and take the jobs the lazy Americans won’t do – I digress)
So creating jobs and getting an education takes time. There is no overnight fix here. Many people have acquired the easy money lifestyle and it will be a foreign concept for them to actually work to make money.
On “House of Cards” they said pizza delivery guys were making 20k a month doing loans and on This American Life’s Giant Pool of Money, it was bartenders doing loans.
The reality is that only in some kind of mega-bubble can a bartender or pizza delivery guy go out and get a job w/their limited education and make 20k a month. I mean, I don’t know. I’m thinking attorney or doctors make 20k a month, engineers. I’m thinking you better have a nice piece of paper from some school when you make that kind of dough. 20k a month is reserved for someone well-educated.
February 21, 2009 at 11:39 AM #351729Participantdenverite – that’s it exactly, as I commented on the “House of Cards” thread. We lost a lot of jobs and outsourced many. The real estate bubble created jobs: contruction, realtors, appraisers, etc. etc. and we played w/monopoly money and insurance on home loans was exported.
Take all that away and you end up where you started. No jobs. The real estate industry cannot be propped up forever. New and lasting jobs need to be created – and not just a job at McDonalds. That means education, too. People need to be skilled at something.
All that requires work. There won’t be any easy money as in the dotcom era or the real estate era. Personally, I like to work. But many Americans are lazy (I think that’s why many Mexicans are opportunistic and take the jobs the lazy Americans won’t do – I digress)
So creating jobs and getting an education takes time. There is no overnight fix here. Many people have acquired the easy money lifestyle and it will be a foreign concept for them to actually work to make money.
On “House of Cards” they said pizza delivery guys were making 20k a month doing loans and on This American Life’s Giant Pool of Money, it was bartenders doing loans.
The reality is that only in some kind of mega-bubble can a bartender or pizza delivery guy go out and get a job w/their limited education and make 20k a month. I mean, I don’t know. I’m thinking attorney or doctors make 20k a month, engineers. I’m thinking you better have a nice piece of paper from some school when you make that kind of dough. 20k a month is reserved for someone well-educated.
February 21, 2009 at 11:39 AM #351828Participantdenverite – that’s it exactly, as I commented on the “House of Cards” thread. We lost a lot of jobs and outsourced many. The real estate bubble created jobs: contruction, realtors, appraisers, etc. etc. and we played w/monopoly money and insurance on home loans was exported.
Take all that away and you end up where you started. No jobs. The real estate industry cannot be propped up forever. New and lasting jobs need to be created – and not just a job at McDonalds. That means education, too. People need to be skilled at something.
All that requires work. There won’t be any easy money as in the dotcom era or the real estate era. Personally, I like to work. But many Americans are lazy (I think that’s why many Mexicans are opportunistic and take the jobs the lazy Americans won’t do – I digress)
So creating jobs and getting an education takes time. There is no overnight fix here. Many people have acquired the easy money lifestyle and it will be a foreign concept for them to actually work to make money.
On “House of Cards” they said pizza delivery guys were making 20k a month doing loans and on This American Life’s Giant Pool of Money, it was bartenders doing loans.
The reality is that only in some kind of mega-bubble can a bartender or pizza delivery guy go out and get a job w/their limited education and make 20k a month. I mean, I don’t know. I’m thinking attorney or doctors make 20k a month, engineers. I’m thinking you better have a nice piece of paper from some school when you make that kind of dough. 20k a month is reserved for someone well-educated.
February 21, 2009 at 1:37 PM #351356paramount
ParticipantEconomic Downturn
Art Bell was joined by Wall St. insider Michael J. Panzner, who discussed the dire economic circumstances in America and around the globe. According to Panzner, the U.S. is not in a typical recession. Instead, he believes the crisis more closely resembles a depression, in which we can expect an extended period of economic contraction accompanied by deflation.
Panzner said the largest players in our banking system are insolvent. He explained their current situation was brought on by a combination of factors, including exposure to trillions of dollars of mortgage backed securities, derivatives and default swaps, and suggested that bailouts and stimulus packages will only postpone the inevitable, not resolve the nation’s financial troubles. “What got us here, decades of excesses, decades of imbalances, you can’t just stop them by saying, ‘OK, we’re determined and we’re going to think positive,'” Panzner remarked.
What does Panzner see on the horizon then? Our currency will continue to be devalued by the ongoing “printing press” policies of our government, he said, and we can expect an inflationary environment. Real estate prices will fall even further, perhaps not reaching final lows until 2012 at the earliest. There will be multiple “lurches down” in the stock market, Panzner continued, noting the Dow might fall by as much as 75% from its current level. The retail sector could be wiped out as the “religion of consumerism seems to be dying,” he said. At the extreme, Panzner foresees the U.S. breaking apart, conflict with Mexico, and perhaps another world war.
Parts of the country will become “suburban wastelands” due to water and energy issues, Panzner further speculated. He exhorted listeners to adjust their attitudes and lifestyles accordingly, and to accept the reality that the current economic downturn is not short term — it’s the new norm. He recommended people pay down debt and live within their means, and advised investors to look at precious metals like gold, silver, and platinum.
February 21, 2009 at 1:37 PM #351669ParticipantEconomic Downturn
Art Bell was joined by Wall St. insider Michael J. Panzner, who discussed the dire economic circumstances in America and around the globe. According to Panzner, the U.S. is not in a typical recession. Instead, he believes the crisis more closely resembles a depression, in which we can expect an extended period of economic contraction accompanied by deflation.
Panzner said the largest players in our banking system are insolvent. He explained their current situation was brought on by a combination of factors, including exposure to trillions of dollars of mortgage backed securities, derivatives and default swaps, and suggested that bailouts and stimulus packages will only postpone the inevitable, not resolve the nation’s financial troubles. “What got us here, decades of excesses, decades of imbalances, you can’t just stop them by saying, ‘OK, we’re determined and we’re going to think positive,'” Panzner remarked.
What does Panzner see on the horizon then? Our currency will continue to be devalued by the ongoing “printing press” policies of our government, he said, and we can expect an inflationary environment. Real estate prices will fall even further, perhaps not reaching final lows until 2012 at the earliest. There will be multiple “lurches down” in the stock market, Panzner continued, noting the Dow might fall by as much as 75% from its current level. The retail sector could be wiped out as the “religion of consumerism seems to be dying,” he said. At the extreme, Panzner foresees the U.S. breaking apart, conflict with Mexico, and perhaps another world war.
Parts of the country will become “suburban wastelands” due to water and energy issues, Panzner further speculated. He exhorted listeners to adjust their attitudes and lifestyles accordingly, and to accept the reality that the current economic downturn is not short term — it’s the new norm. He recommended people pay down debt and live within their means, and advised investors to look at precious metals like gold, silver, and platinum.
February 21, 2009 at 1:37 PM #351796ParticipantEconomic Downturn
Art Bell was joined by Wall St. insider Michael J. Panzner, who discussed the dire economic circumstances in America and around the globe. According to Panzner, the U.S. is not in a typical recession. Instead, he believes the crisis more closely resembles a depression, in which we can expect an extended period of economic contraction accompanied by deflation.
Panzner said the largest players in our banking system are insolvent. He explained their current situation was brought on by a combination of factors, including exposure to trillions of dollars of mortgage backed securities, derivatives and default swaps, and suggested that bailouts and stimulus packages will only postpone the inevitable, not resolve the nation’s financial troubles. “What got us here, decades of excesses, decades of imbalances, you can’t just stop them by saying, ‘OK, we’re determined and we’re going to think positive,'” Panzner remarked.
What does Panzner see on the horizon then? Our currency will continue to be devalued by the ongoing “printing press” policies of our government, he said, and we can expect an inflationary environment. Real estate prices will fall even further, perhaps not reaching final lows until 2012 at the earliest. There will be multiple “lurches down” in the stock market, Panzner continued, noting the Dow might fall by as much as 75% from its current level. The retail sector could be wiped out as the “religion of consumerism seems to be dying,” he said. At the extreme, Panzner foresees the U.S. breaking apart, conflict with Mexico, and perhaps another world war.
Parts of the country will become “suburban wastelands” due to water and energy issues, Panzner further speculated. He exhorted listeners to adjust their attitudes and lifestyles accordingly, and to accept the reality that the current economic downturn is not short term — it’s the new norm. He recommended people pay down debt and live within their means, and advised investors to look at precious metals like gold, silver, and platinum.
February 21, 2009 at 1:37 PM #351830ParticipantEconomic Downturn
Art Bell was joined by Wall St. insider Michael J. Panzner, who discussed the dire economic circumstances in America and around the globe. According to Panzner, the U.S. is not in a typical recession. Instead, he believes the crisis more closely resembles a depression, in which we can expect an extended period of economic contraction accompanied by deflation.
Panzner said the largest players in our banking system are insolvent. He explained their current situation was brought on by a combination of factors, including exposure to trillions of dollars of mortgage backed securities, derivatives and default swaps, and suggested that bailouts and stimulus packages will only postpone the inevitable, not resolve the nation’s financial troubles. “What got us here, decades of excesses, decades of imbalances, you can’t just stop them by saying, ‘OK, we’re determined and we’re going to think positive,'” Panzner remarked.
What does Panzner see on the horizon then? Our currency will continue to be devalued by the ongoing “printing press” policies of our government, he said, and we can expect an inflationary environment. Real estate prices will fall even further, perhaps not reaching final lows until 2012 at the earliest. There will be multiple “lurches down” in the stock market, Panzner continued, noting the Dow might fall by as much as 75% from its current level. The retail sector could be wiped out as the “religion of consumerism seems to be dying,” he said. At the extreme, Panzner foresees the U.S. breaking apart, conflict with Mexico, and perhaps another world war.
Parts of the country will become “suburban wastelands” due to water and energy issues, Panzner further speculated. He exhorted listeners to adjust their attitudes and lifestyles accordingly, and to accept the reality that the current economic downturn is not short term — it’s the new norm. He recommended people pay down debt and live within their means, and advised investors to look at precious metals like gold, silver, and platinum.
February 21, 2009 at 1:37 PM #351928ParticipantEconomic Downturn
Art Bell was joined by Wall St. insider Michael J. Panzner, who discussed the dire economic circumstances in America and around the globe. According to Panzner, the U.S. is not in a typical recession. Instead, he believes the crisis more closely resembles a depression, in which we can expect an extended period of economic contraction accompanied by deflation.
Panzner said the largest players in our banking system are insolvent. He explained their current situation was brought on by a combination of factors, including exposure to trillions of dollars of mortgage backed securities, derivatives and default swaps, and suggested that bailouts and stimulus packages will only postpone the inevitable, not resolve the nation’s financial troubles. “What got us here, decades of excesses, decades of imbalances, you can’t just stop them by saying, ‘OK, we’re determined and we’re going to think positive,'” Panzner remarked.
What does Panzner see on the horizon then? Our currency will continue to be devalued by the ongoing “printing press” policies of our government, he said, and we can expect an inflationary environment. Real estate prices will fall even further, perhaps not reaching final lows until 2012 at the earliest. There will be multiple “lurches down” in the stock market, Panzner continued, noting the Dow might fall by as much as 75% from its current level. The retail sector could be wiped out as the “religion of consumerism seems to be dying,” he said. At the extreme, Panzner foresees the U.S. breaking apart, conflict with Mexico, and perhaps another world war.
Parts of the country will become “suburban wastelands” due to water and energy issues, Panzner further speculated. He exhorted listeners to adjust their attitudes and lifestyles accordingly, and to accept the reality that the current economic downturn is not short term — it’s the new norm. He recommended people pay down debt and live within their means, and advised investors to look at precious metals like gold, silver, and platinum.
February 21, 2009 at 2:55 PM #351391afx114
Participant[quote=denverite]The only long-term cure will be when the government adopts policies that create and maintain middle-class (production) jobs. This means that,as a nation, we must produce goods and services that the US and the remainder of the world will need.[/quote]
Agreed: Green Tech, Stem Cells, Doritos.
February 21, 2009 at 2:55 PM #351703Participant[quote=denverite]The only long-term cure will be when the government adopts policies that create and maintain middle-class (production) jobs. This means that,as a nation, we must produce goods and services that the US and the remainder of the world will need.[/quote]
Agreed: Green Tech, Stem Cells, Doritos.
February 21, 2009 at 2:55 PM #351831Participant[quote=denverite]The only long-term cure will be when the government adopts policies that create and maintain middle-class (production) jobs. This means that,as a nation, we must produce goods and services that the US and the remainder of the world will need.[/quote]
Agreed: Green Tech, Stem Cells, Doritos.
February 21, 2009 at 2:55 PM #351864Participant[quote=denverite]The only long-term cure will be when the government adopts policies that create and maintain middle-class (production) jobs. This means that,as a nation, we must produce goods and services that the US and the remainder of the world will need.[/quote]
Agreed: Green Tech, Stem Cells, Doritos.
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