Is the Economy Collapsing?

[briann]

The economy goes through a 7-8 year cycle of up and down...The last down was 2000-2001 especially after 9/11.

Doesn't it say in Judaism that the a plot of land should not be harvested on the 7th year let it rest?  For some reason I think about this in regards to our economy.

That only applies in Israel, but I think this is going to be worse than just another cycle. We have banks running out of money for the first time since the Great Depression.

I'm on my way over to Israel G-d willing because the future doesn't look bright here.

Actually in 89-90 far more banks went bankrupt (they were saving banks).

Your speaking of the S & L crisis.  (Which cost us dearly!!)
We could Easily get to that point.... assuming current trends hold.

right, but then again, it doesn't mean the whole economy is going to collapse.

No.. I never said that... however... it could lead to a depression.   Basically... you have to watch the bank situation.. to see what will happen. 

[Angry Panther]

When our economy does collapse there will be no money for foreign aid. It will be fun to watch all these third world Muslim Nazi countries collapse. Only Israel has the brains to survive, the rest of them won't be able to afford a vacation in their own backyard.

As for me, I'm stocking up on pencils and staking out a good corner on 42nd and Broadway. 

[cjd]

As we sit here now anything is possible it seems like we are in a perfect storm of world wide bad events. The mortgage crises problem is only now coming into full bloom and is starting to pull down the banking industry. Once a few banks go under and people walk out with pennies on the dollar the faint of hart will start pulling cash out of the banks and start stuffing it under their mattress. Once a few banks come up short it will send a panic through the country. The FDIC should try to prop up failing banks before they go belly up and people start drawing their money out for no reason. Let folks know that their funds will be there and there is no reason to draw their funds out of the bank. The FDIC is passing out money after the banks fail and it most likely costing them more  to pay out depositors the 100g's than it would be to prop up the bank until the panic subsides. Whats worse is that some folks are loosing some if their hard earned savings if they exceed the limit once the bank fails.Business is also starting to take it on the chin because people are not spending unless the have to since they can no longer subsidise spending with equity loans from their homes.

[briann]

As we sit here now anything is possible it seems like we are in a perfect storm of world wide bad events. The mortgage crises problem is only now coming into full bloom and is starting to pull down the banking industry. Once a few banks go under and people walk out with pennies on the dollar the faint of hart will start pulling cash out of the banks and start stuffing it under their mattress. Once a few banks come up short it will send a panic through the country. The FDIC should try to prop up failing banks before they go belly up and people start drawing their money out for no reason. Let folks know that their funds will be there and there is no reason to draw their funds out of the bank. The FDIC is passing out money after the banks fail and it most likely costing them more  to pay out depositors the 100g's than it would be to prop up the bank until the panic subsides. Whats worse is that some folks are loosing some if their hard earned savings if they exceed the limit once the bank fails.Business is also starting to take it on the chin because people are not spending unless the have to since they can no longer subsidise spending with equity loans from their homes.

WELL SAID!!!!!  Did you take an econ class?

[Sarah]

Food prices have rocketed over the past few weeks here in the UK and the property market has collapsed.