Watch this video from PBS about the 1929 crash and pay close attention to the parallels with today. We are following the same trajectory and can expect the same results. With one major difference.
Debt.
The debt load of the country and individuals will cause a collapse that will make 1929 pale in comparison. On top of this, the FED is printing money to cover this debt at such an incredible pace that our currency will be worthless.
Just as in 1929 the market is in the midst of a bubble. Speculators from around the world, certain that we are going to enter a period of incredibly high inflation due to the massive amounts of money that have been injected into the system are buying as many assets as they can. The FED has kept interest rates low to prop up our failing economy so money is cheap for those that can get it. These investors are buying up assets with 0% loans hoping that inflation will let them pay back at super cheap prices. None of the recent surge in stock prices is based on solid economic growth but on pure speculation. This bubble will burst, just like all the others.
The people that lived through the depression were tough and self reliant. Can the same be said of us today?
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