Bad news tomorrow?... - Page 6

Crowley · 11-07-2008, 01:45 PM

http://useconomy.about.com/od/grossd...Depression.htm

Question: What is a Depression?

Answer: A depression is a severe economic downturn that lasts several years. Fortunately, the U.S. economy has not experienced a depression since The Great Depression of 1929, which lasted ten years. The GDP growth rates were of a magnitude not seen since:

1930 -8.6%
1931 -6.4%
1932 -13%
1933 -1.3%.
During the Depression, unemployment was 25% and wages (for those who still had jobs) fell 42%. Total U.S. economic output fell from $103 to $55 billion and world trade plummeted 65% as measured in dollars.
The Depression was aggravated by poor monetary policy. Instead of pumping money into the economy, and increasing the money supply, the Fed allowed the money supply to fall 30%. The "New Deal" created many government programs to end the Depression, but government programs alone could not end it. Unemployment remained in the double-digits until 1941, when the U.S. entry into World War II created defense-related jobs.

We probably won't see a depression like that again, simply because the government has learned how to avoid it. Many laws and government agencies were put in place because of The Great Depression with the express purpose of preventing that type of cataclysmic economic pain.

*The_Blur* · 11-07-2008, 01:58 PM

Quote:

Originally Posted by Dragoneye

I agree with ya, Mr. Icky.

I'd like to extend my thoughts on the subject...A "depression" by definition (at least the way I was taught) is an extended recession. So if this environment continues for any length of time, we could very well be in a legitimate depression. However, we have not nearly reached the severity of the Great Depression. And I pray to God we never do.

On a related side note, it irks me when newscasters still report on how we're "heading toward" recession.

No longer is anyone asking, "Are we there yet?" We've been there in the parking garage for months!

FenwickHockey65 · 11-07-2008, 02:14 PM

GM really needs to start organizing their brands better...I think that should be one of their first steps.

*GTAHVIT* · 11-07-2008, 02:57 PM

Quote:

Originally Posted by DGthe3

If the guys at the top take a pay cut it will be nothing more than a symbolic gesture. GM is going through $2B a month, a few million a year is nothing.

+1
Not even a drop in the bucket.

Now, if they can't bring GM out of this, They should be held accountable.

*GTAHVIT* · 11-07-2008, 03:04 PM

Quote:

Originally Posted by The_Blur

On a related side note, it irks me when newscasters still report on how we're "heading toward" recession.

No longer is anyone asking, "Are we there yet?" We've been there in the parking garage for months!

Wait, Not that I thnk the economy is good, by any streatch of the imagination. But, there are spedific numbers that we have to hit for it to be a real depression. We aren't there yet.

Quote:

So how can we tell the difference between a recession and a depression? A good rule of thumb for determining the difference between a recession and a depression is to look at the changes in GNP. A depression is any economic downturn where real GDP declines by more than 10 percent. A recession is an economic downturn that is less severe.

Source

lalometalik · 11-07-2008, 03:41 PM

Quote:

Originally Posted by The_Blur

On a related side note, it irks me when newscasters still report on how we're "heading toward" recession.

No longer is anyone asking, "Are we there yet?" We've been there in the parking garage for months!

Quote:

Originally Posted by gtahvit

Wait, Not that I thnk the economy is good, by any streatch of the imagination. But, there are spedific numbers that we have to hit for it to be a real depression. We aren't there yet.

he wrote 'Recession', not 'Depression'.
no need to get excited just yet

Design1stCode2nd · 11-07-2008, 03:43 PM

We are not in a depression, recession yes but not a depression. There are no 15-20% unemployment figures.

*The_Blur* · 11-07-2008, 03:53 PM

Quote:

Originally Posted by The_Blur

On a related side note, it irks me when newscasters still report on how we're "heading toward" recession.

No longer is anyone asking, "Are we there yet?" We've been there in the parking garage for months!

There it is!

Quote:

Originally Posted by gtahvit

Wait, Not that I thnk the economy is good, by any streatch of the imagination. But, there are spedific numbers that we have to hit for it to be a real depression. We aren't there yet.

Source

You might need some glasses. Check these out.

Quote:

Originally Posted by lalometalik

he wrote 'Recession', not 'Depression'.
no need to get excited just yet

Quote:

Originally Posted by Design1stCode2nd

We are not in a depression, recession yes but not a depression. There are no 15-20% unemployment figures.

We're not in a depression. Fortunately, the federal government has learned a lot of lessons from the past. Hopefully, consumer confidence returns to the market in the near future.

lalometalik · 11-07-2008, 03:59 PM

Quote:

Originally Posted by The_Blur

You might need some glasses. Check these out.

he's not star gazing

Maddog78 · 11-07-2008, 04:00 PM

The GDP and unemployment figures are calculated in such a massaged manner nowadays that they aren't even valid for historical comparisons.
The real unemployment rate is already around 12-14 percent, many analysts estimate.

Wm Holden · 11-07-2008, 04:13 PM

Quote:

Originally Posted by Design1stCode2nd

We are not in a depression, recession yes but not a depression. There are no 15-20% unemployment figures.

yet...

Maddog78 · 11-07-2008, 04:14 PM

http://moneycentral.msn.com/content/P146055.asp

Just one example of what I was talking about in the above post.

*GTAHVIT* · 11-07-2008, 04:15 PM

Quote:

Originally Posted by lalometalik

he wrote 'Recession', not 'Depression'.
no need to get excited just yet

Ooops I meant to quote another post in addition to Blurs. Woops.

Oh and the glasses thing was really funny man I was laughing so hard... Woooo Hoooo. That was some funny ish. Man you guys are good....

porcupinekiller · 11-07-2008, 05:42 PM

I think the market is oversaturated with to many non-descriptive cars from to many non-descriptive manufactures and people have to many choices. Kia, Hyundai, Nissan, Subaru, Toyota etc etc can all go to hell as far as I'm concerned. 30 yrs ago you'd be hard pressed to see a handfull of imports on the road on a daily basis. Now well over half of the vehicles I see on the road are imports. People that buy imports are more responsible if the US auto industry collapses than the Big 3 themselves. If GM goes under make sure to give the next import driver you see a punch in the head as he played a role in this mess.

11-07-2008, 01:45 PM	#71
Crowley Okie doke Drives: 2012 GT500 Join Date: Sep 2008 Location: McKinney Texas Posts: 3,567 View My Garage	http://useconomy.about.com/od/grossd...Depression.htm Question: What is a Depression? Answer: A depression is a severe economic downturn that lasts several years. Fortunately, the U.S. economy has not experienced a depression since The Great Depression of 1929, which lasted ten years. The GDP growth rates were of a magnitude not seen since: 1930 -8.6% 1931 -6.4% 1932 -13% 1933 -1.3%. During the Depression, unemployment was 25% and wages (for those who still had jobs) fell 42%. Total U.S. economic output fell from $103 to $55 billion and world trade plummeted 65% as measured in dollars. The Depression was aggravated by poor monetary policy. Instead of pumping money into the economy, and increasing the money supply, the Fed allowed the money supply to fall 30%. The "New Deal" created many government programs to end the Depression, but government programs alone could not end it. Unemployment remained in the double-digits until 1941, when the U.S. entry into World War II created defense-related jobs. We probably won't see a depression like that again, simply because the government has learned how to avoid it. Many laws and government agencies were put in place because of The Great Depression with the express purpose of preventing that type of cataclysmic economic pain. __________________

11-07-2008, 02:14 PM	#73
FenwickHockey65 General Motors Aficionado Drives: 2023 GMC Canyon, 2023 Expedition Join Date: Aug 2008 Location: Florida Posts: 37,375 View My Garage	GM really needs to start organizing their brands better...I think that should be one of their first steps. __________________ 2023 GMC Canyon Elevation 2023 Ford Expedition SSV (State-Issued)

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11-07-2008, 03:43 PM	#77
Design1stCode2nd Drives: four wheels Join Date: Oct 2007 Location: usa Posts: 585	We are not in a depression, recession yes but not a depression. There are no 15-20% unemployment figures.

11-07-2008, 04:00 PM	#80
Maddog78 Drives: 1969 Z28 Join Date: Mar 2008 Location: BC Posts: 378	The GDP and unemployment figures are calculated in such a massaged manner nowadays that they aren't even valid for historical comparisons. The real unemployment rate is already around 12-14 percent, many analysts estimate.

11-07-2008, 04:14 PM	#82
Maddog78 Drives: 1969 Z28 Join Date: Mar 2008 Location: BC Posts: 378	http://moneycentral.msn.com/content/P146055.asp Just one example of what I was talking about in the above post.

11-07-2008, 05:42 PM	#84
porcupinekiller Drives: 2010 GT500 Join Date: May 2008 Location: Sherwood Park, Alberta Posts: 662	I think the market is oversaturated with to many non-descriptive cars from to many non-descriptive manufactures and people have to many choices. Kia, Hyundai, Nissan, Subaru, Toyota etc etc can all go to hell as far as I'm concerned. 30 yrs ago you'd be hard pressed to see a handfull of imports on the road on a daily basis. Now well over half of the vehicles I see on the road are imports. People that buy imports are more responsible if the US auto industry collapses than the Big 3 themselves. If GM goes under make sure to give the next import driver you see a punch in the head as he played a role in this mess.