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Tuesday, January 12, 2010

Great Depression II

Dear Warwick:

I read your article about people more prone to default on houses. I also read about banks facing more problems. Warwick if that idiot Bush had not acted in 2008 and Obama had not followed up, we would have Great Depression II now, We should all thank God that Ben Bernanke was the man calling all of the strategic plays. As luck would have it, he wrote his PhD thesis on the Great Depression. He knew the mistakes that were made and the awful consequences of those mistakes.

Most troubling is that people now are used to a high level of prosperity and material comfort. Imagine what would happen to the mall rats and spoiled suburban people if, all of a sudden,"the rug was pulled out from under them." They would be foreclosed out of their comfortable homes or apartments and put on the streets. They would begin to understand hunger and privation. All of their hope and optimism would have been gone. The truly poor people hoping for a better life for their children would have their hopes dashed. You would have violence and political instability that would be unimaginable. It would be a perfect breeding ground for Stalins and Hitlers. It would be the perfect place for a catastrophic World War III to begin.

People now fail to remember that the people alive in the 1920's,despite the Roaring 20's and all the prosperity, were tougher, much poorer, and more used to hardships. They also did not have the grand expectations that people have now. The economic collapse was tough for them. They survived it better than people now would survive such an event. Think back to your grand parents, etc.

Ben Bernanke is like Captain Scullenberger who landed his airliner in the Hudson River one year ago. He trashed the plane but saved the passengers. Bernanke trashed the US economy and hastened the day that China will overtake us and become the greatest super power in the world. But he saved all of we passengers from a horrible fate. One day historians will give him the hero status that he deserves.

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