The Real Great Depression
Spartacus sends along this article on The Panic of 1873, which was so bad that Great Depression-era folks used to console themselves by saying that things weren't as bad as '73.
Pretty thin gruel, especially as the author draws parallels between today and 1873.
Denninger then details those parallels in full, noting that:
...We are now in the end game; Treasuries are the last bubble, and when it bursts, we will find ourselves in a Depression that will make the 1930s look like a Cakewalk.
Bernanke has gone "all in", and he holds 2-7 offsuit.
He needs 7-7-2 on the board or he's dead.
You run the odds, then figure out what you need to do.
I am no longer looking at a 1930s scenario as my base case; that has shifted to the panic of 1873, which was far worse than the 1930s and included widespread civil unrest. Go do some reading - and make sure you're sitting down. The parallels in the foundation of how that panic occurred - industrial shifts (US >> China) and insanely-loose mortgage credit (European in particular) are stunning - and troubling.
If Bernanke won't cut this crap out Congress needs to do so, and do it now. A replay of the 1873 Depression in today's society will be catastrophic, with unemployment reaching 30% or more and leaving essentially everyone - corporate or otherwise - carrying any form of debt wiped out. Deficit spending will become instantly impossible; go figure out what that does to the Federal Budget.
We are running out of time to stop that outcome and if effective action is not taken before the Treasury Bubble pops it will, quite simply, be too late. That Genie is not the friendly sort, and once he pops out there is no stuffing him back into the bottle...
But I'm sure that Marxist central planning and Keynesian fiscal policy practiced by an insolvent US government led by a narcissist will save the day.
Alea iacta est.