Posted by
USMC VIET VET on Thursday, October 02, 2008 4:20:13 PM
There is an economic crisis ! ! We have been told that every day for the past week. And the problem needs to be solved ! ! We have been told that it needs to be fixed now, today, every day for the past week. But, before everyone panics --seems that congress already has -- lets put it into perspective. In the past 12 months the stock market fell about 25%. In 1929 the market dropped 40% in less than two months.
According to the most recent report of the Bureau of Labor Statistics unemployment stands at 6.!%. In 1933 it unemployment rose to 25%.
The most recent report for GDP is that it has increased by 2.8% in 2008 and is expected to continue to grow at a 2.52% rate in 2009. GDP in the 1930’s plunged by 25%.
The last report on home prices in the US showed that they fell by 16% in 2008. In the 1930’s they fell over 30%. The report on delinquent mortgages for 2008 shows that they are at 4%. In 1934 delinquent mortgages rose to 40%.
In 2008 there have been less than 20 banks that have failed and there are 90 banks on the FDIC watch list. In the 1930’s over 9,000 banks failed.
Is there a financial crisis? Yes there is. Is it another great depression? No. But if Congress continues to promote it as another great depression, it may become a self-fulfilling prophecy.