A new "new deal"?

[Charles Dean]

So something I've been thinking about over the last few days is what will happen to the economy and how will we get out of it and I started thinking about what was done during our 1st depression.

Now, I don't think things will be as bad as they were back then, but I do think that they will be very bad. Like unemployment well over 10%.

So while the current bailout/taxpayer investment is happening, I think this is only going to settle the markets until the election. I don't think that it will give us long term relief.

So I think what we'll likely see after the election is a combination of corporation breaking, regulation and possibly new deal infrastructure construction to put people back to work.

I think we'll see alot of renewable energy building as well as infrastructure repair all across the country. I also think that we'll see the fundamentals of the Glass-Steagal act come back and alot of financial institutions will be forced to split up their holdings into much smaller companies.

I will say that I only think this will happen of Obama is elected, because I don't think McCain has a vision for this kind of work.

Thoughts? Is a new "new deal" the way to get us out of this?

[rose-colored-coolaid]

Except...the current bailout didn't happen. At least not today, not in its current form.

It's almost like Democracy is actually working...but only when the people get really really angry.

I agree that we'll see something akin to the New Deal. People tend to overestimate how influential it was in getting us out of the depression. It didn't help all that much. Meanwhile, people seem to underestimate how influential the new deal was in the post-war growth. All those civil engineering projects really contributed to all the good that happened in the 1940s and 1950s.

Right now, our infrastructure is in a pathetic state, and we can only hope that the upcoming depression gives us a opportunity to solve that. I have one major concern though, which is we have run up so much national debt the last 25 years (and the last 7 years especially) that it harms the federal government's ability to run major programs like a "newer deal".

[Charles Dean]

Heh. Yeah, I wrote that this morning prior to the vote.

Looks to me like the people have spoken and we're just going to let wall street burn down and we'll rebuild.

From what I understand about the new deal, it was less about actual economic growth and more about just putting people back to work. Get people out there working with their hands again and off of the bread lines. Working on something they could be proud of.

I can see that happening again. Get people out there working on our infrastructure again. Get people reinvolved in our country and be able to be proud of what they're working on. Have our country manufacture actual goods and start exporting something other than debt.

You brought up our national debt. What was our national debt like back during the depression? Was it about the same GDP size percentage-wise as what we're seeing now?

[SeattleMoose]

RCC...agree.

I would much rather see my tax dollars going for infrastructure than oil wars and for bailouts to continue the WS status quo.

Geez, maybe those emails to our representatives actually helped. But then again, if it wasn't just 5 weeks until the election one has to wonder what the vote would have been.

I heard some bail out proponent trying to explain why "mainstreet" needs the bailout and I quote...."small businesses need to have access to credit to pay their employees". Last I checked that would be called a business that is losing money. Perhaps to start a new business but that it all. Pretty much a bold faced lie.

what a shock

[rose-colored-coolaid]

[Charles Dean]

I totally agree. 700 Billion towards our infrastructure would do much better for our economy and our country. That many more well paying jobs, a better country and all of that money flowing freely allowing people to actually pay their bills! Reaganomics is dead. It's time for bottom-up economics.

[SeattleMoose]

"It is possible".....yes it is "possible".

But the quote had no qualifiers and made it sound like ALL businesses are operating in the red.

Again...a bold faced lie to scare people into voting for the bailout.

In the coming days the fear mongers will be out in force trying to sell us "The Financial Patriot Act" and pointing to the DOW and saying "see we told you so, the sky is falling". And the DOW, the reflection of the credit junkies will act its part, writhing in pain, and looking pathetic....."just one hit man, I SWEAR this is the last one".

And sadly, while we won a battle today I predict "the war" will be won by the WS credit junkies.

I pray I am wrong.

[rose-colored-coolaid]

I agree with your assessment Moose. Just pointing out that there are some viable businesses that do need some credit to survive. Somehow, I think these business will still be able to get credit; it'll just cost more. I mean, these viable businesses who are short on capitol but still viable are likely to be small and quickly growing (they reinvest capital into expanding market). MSFT, for instance, won't suddenly stop making payroll.