History Repeats Itself

Today’s lesson boys and girls will be a lesson on how “History Does Really Repeat Itself” for a while now I’ve been telling people the Great Depression is going to return. Many believed I was over exaggerating but if you take a good look at the world today do you see what road we are headed down…

It was 1929 and the people were in a worldwide economic downturn. It was the larges and most important economic depression in modern history. Most historians will use the starting date of the Great Depression as the stock market crash on October 29, 1929, which is better known as “Black Tuesday.”

Hmmm… Let’s take a break here, what was yesterday? TUESDAY… and what happened yesterday boys and girls.. U.S.stocks plunged and the Standard & Poor's 500 Index tumbled the most since the 1987 crash after the House of Representatives rejected a $700 billion plan to rescue the financial system. The Dow Jones Industrial Average slid 778 points for its biggest point drop ever as $1.2 trillion in market value was erased from American equities. The MSCI World Index of 23 developed markets slid 6.9 percent, the most in 21 years. In layman’s terms people…? The GOP revolt against America resulted in the largest point drop in DJIA history… -minus 778 points. This beats the previous record of 9/12/2001. All across America, retirees and would be retirees lost 7% of their stock value on average…. “Average”. For someone who’s been putting away money for 30 years, that’s 2 years of work lost down the toilet in one day… “One”.

The depression had devastating effects both in the developed and delveloping world. International trade was deeply affected, as were personal incomes, tax revenues, prices, and profits. Cities all around the world were hit hard, especially those dependent on heavy industry. Construction was virtually stopped in many countries. Even shortly after the Wall Street Crash of 1929, optimism continued. John D. Rockefeller said that "These are days when many are discouraged. In the 93 years of my life, depressions have come and gone. Prosperity has always returned and will again."

I’m sure it will come again, I’m sure gas prices will rise, home’s will be worth what they should be and above. But as of right now, it looks like we are going to have to repeat history and go so far down the drain before we rise again…

The Great Depression ended at different times in different countries. The majority of countries set up relief programs, and most underwent some sort of political upheaval, pushing them to the left or right. In some states, the desperate citizens turned toward nationalist political leaders - the most infamous being Adolf Hitler - setting the stage for World War II in 1939.

Please don’t let us end in that route again… we are in a political battle and a lot of the outcome rely’s on who sits in that house.

Now there has never been an exact pin point as to what started the fall of the economic standards. Recession cycles are thought to be a normal part of living in a world that revolves around supply and demand. What turns a usually mild and short recession or “ordinary” business cycle into a great depression is a subject of debate and concern. The big question is whether it was largely a failure on the part of free markets or largely a failure on the part of governments to cut off widespread bank failures, the resulting panics, and reduction in the money supply.

Yesterday, I heard in the news that there might come a point in time that the banks will freeze your accounts because they won’t have the money to supply you. “Won’t be able to supply you with YOUR OWN MONEY” … am I the only one that sees a resemblance here??? Honestly, am I trippin?

Okay okay, this is enuff of my history lesson… I just wanted to inform those few who don’t know what’s going on in the world… also if you thought I was the type that didn’t care about this matter, know ya kno…