Animal’s Daily News

Cash
Money Matters.

Uh oh.  Crash of 2014: Like 1929, You’ll Never Hear it Coming.  Excerpt:

Through much of 2013, pundits warned how bad the market really was. Then in December the Wall Street Journal revealed that after 13 years in negative territory, Wall Street’s “Lost Decade” (which lasted from the 2000 crash to the end of 2013), finally broke even on an inflation-adjusted basis.

And here we are panicking again, fearing that 1929 will repeat in 2014: Wall Street, Main Street, tens of millions of Americans, the Fed, SEC, all of Washington. Yes, outward calm. Inside? You guessed it, total Panicville. Especially following Mark Hulbert’s thought-provoking: “Scary 1929 market chart gains traction.”

But even scarier? That “consensus,” the “predictably irrational” defense the bulls countered with in “Consensus on ‘scary’ 1929 chart: Enough already, it’s not happening.” For one thing, that so-called “consensus” actually proves Hulbert’s point: Investors really are worried he’s onto something, afraid the market may indeed be close to repeating the 1929 crash.

So what would happen now, today, in 2014, were a 1929-style market crash happen and the resulting depression ensue?

Shy BearIt’s hard to say; predictions are notoriously difficult to make, especially about the future.  Of course, things are a lot different now than in 1929; in those days, when my Old Man was six years old, charity was just that, administered mostly be churches and social organizations.  Now the social “safety net” has become a hammock.  So, unlike during the Great Depression, we won’t see people starving to death here in the United States; obesity will instead be a leading health problem among the cash-challenged.

But we do have in place an Administration which, like the FDR Administration during the Depression, will almost certainly meet any such crisis with actions that will prolong the crisis.  In fact, the Obama Administration has shown a breathtaking propensity for spending taxpayer dollars with a profligacy that would make FDR gasp in shock.

triple-facepalmOne wonders, if the White House were to catch fire, would the current residents attempt to solve the problem by pouring gasoline on the blaze?  That makes about as much sense as trying to spend our way out of debt.  Oh, and while we’re on the subject of debt, the GOP – supposedly the party of fiscal sanity – has rolled over like a dead carp on the debt limit, effectively handing the President a blank check and getting nothing – not a single concession, not even a decrease in the rate of increase on any spending issue.

Right now there’s damn little evidence of any intelligent life in Washington.