WI: October first 2008: The Second Depression

Mussleburgh

Banned
I think many people will see this as Capitalism's death throws and 'It might be time to start the revolution'. That sort of thing. ;)

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Financial failures of the kinds we have seen will not, in themselves, collapse the economy. What can cause a catastrophe would be a permanent cut in our supply of oil/fuel. That would be a different thread, either "After 1900" or Future History.

By the way, this thread does not have a defined POD, only speculation over the impact of the failures on Wall Street.
 
What lets say the downturn in the stock and housing marked causes on October first 2008 the US Stockmarked to colapse completely.

Having 5 to 10 million be layed off the first to weeks of October.

What then?

/Fred

I dunno, if the ecomony goes in the crapper; the Depression becomes known as the Bush Depression, John McCain loses the election by a landslide and the Republicans can't get elected dogcatcher - even though as many Democrats are as responsible for the crisis as Republicans are. Over the next four years these same Democrats start to lose their seats as well as they prove to be as unable or unwilling to ease the ongoing crisis, much less end it.
Extremely conservative and libertarian political parties start to splinter off from the existing Republican and Democratic Parties and these new parties start to make headway into mainstream elections.
 
As the package has been voted down, things are looking good.
Sure it will continue to be bad for some time but, as the dollar is weak your exsport should increass, would know i am curently buying more and more form the us online, and its getting much more comon. Weak dollar = cheaper us good = more eksports
And your marked works wery well look at Lehman Brothers invstment bank, a bad company quickly sold off. Its good assets keept its bad asset removed realsing savings and capital for investement and not for runnig loses.
In the long run this is very very healty.
But one would think yould have learnd that credit fiinansig is not a good idea, in 29 i was in the stock marked, now it was in private loans.

But a thought 2-3 years then you get a more healty us economy and thus a better world economy.
 
The worst part of this whole mess will be credit drying up. If the banks don't have cash, then no one will be able get a loan. No loans means paychecks will be late or face shortfalls, no one will be able to make major purchases, etc. etc. So far, the current crisis has been confined largely to financials and housing, but it could easily spread to the rest of the economy.

Damn the House of Representatives...

But as someone else has said already, weak dollar= more exports.
 
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