To Joey M:

The contraction of the USmoney supply from 1929 to 1933 of about 27% happened despite aggressive Federal Reserve attempts to counter the push of market forces. The Fed rapidly reduced interest rates throughout 1930, but the money supply fell for two primary reasons:
1) The easy money inflation of the twenties in the US raised our prices relative to prices in Europe, with whom nearly all of our foreign trade was conducted. Lower prices in Europe contributed to the outflow of gold from the United States. The gold outflow reduced the monetary base, in spite of Fed efforts to counter this tendency by monetizing treasury debt. As the base declined, banks were forced to sell assets, reduce lending. This reduced the deposit money component of our fiat money.
2) The Federal Reserve cartel sought to protect the profits of member banks by prohibiting certain forms of competition, namely the practice of branch banking. In Canada, where branch banking was permitted, the Depression years produced all of two bank failures. In the USA, where branch banking was outlawed, thousands of banks failed. Every bank that failed deprived depositors of the money they had deposited with the bank. So every bank failure reduced the supply of deposit money. As banks began to fold, frightened depositors lined up to cash out their checking and savings accounts; the retreat into cash forced further reductions in deposit money.

Of course, as the money supply contracted, prices fell, especially producer prices. This led to further loan defaults, which decimated bank capital, thereby forcing further bnak liquidations of assets–loans and securities.

I am genuinely interested in your thesis, and wholeheartedly agree that much of today’s crisis arose from an unsustainable amount of bad credit. However, I would point out that during the Depression of 1929-39, didn’t the Federal Government do precisely what you suggest they do now? By keeping interest rates high, didn’t they prolonged the crisis? Or are you arguing that a 10+ year Depression is necessary to “cleanse” the global financial system of credit excess?
If we lower interest rates, we keep the bubble artificially inflated. If we raise them, we pop it violently now and bring the whole system to a grinding halt. I’m confused and I’m sure I’m not the only one.

I think the entire mess is unprecedented. There are places out there that can help but things need to be doen the right way by customers, banks, wall st etc for the economy to recover.

Good Debt
Some of your debt might be considered an investment. You’re probably thinking, “How can anything as bad as debt be considered an investment!” If you took on the debt to purchase something that will increase in value and can contribute to your overall financial health, then it’s very possible that debt is a good one.

For example, a home purchase can be considered to be a good debt. Since homes usually appreciate in value, the mortgage loan you take out to pay for the home is an investment. Another example of a good debt is a student loan taken out to finance a college education. Earning a college degree usually means that you’ll make more money over your lifetime.
Bad Debt

Just like there is good debt, there are some bad debts too. When you use debt to finance things that can be consumed, you aren’t accumulating good debt. This is the kind of debt that creates an unhealthy financial situation. Credit card debt is often considered bad debt because of the nature of items that credit cards are used to purchase. You should never accumulate debt to purchase everyday items like clothes or food. If you use a credit card for these types of purchases, you should pay the balance in full each month.

Even debt used to finance a vacation is bad debt. Even though it might help you feel better and be more productive once you return, a vacation does not appreciate in value. Don’t use debt to pay for a vacation and especially don’t use it to pay for a vacation you can’t afford.
Mortgages

I LIKE THE LINK….

Mortgages

Even debt used to finance a vacation is bad debt. Even though it might help you feel better and be more productive once you return, a vacation does not appreciate in value. Don’t use debt to pay for a vacation and especially don’t use it to pay for a vacation you can’t afford.

Mortgages

you are really from united state no as the attitude are you showing is looking like united state type,that’s why.