So, Dad. What did you do during the Depression of 2008?

[grapejelly]

Do you think your grandkids will be asking you this?

I remember in the 1970s there was a huge movement of people led by Howard Ruff on getting through the hard times.

Then the 1980s were upon us, gold and silver parabolically rocketed up and crashed, and that was the end of the hard times ahead.

Will it be this simple? Or, This Time It's Different? :eek:

[Mega]

Re: so dad, what did you do during the Depression of 2008?

It will be differant this time, Russia & China+India Etc...Their living standards are going UP, thus ours MUST fall.

We don't have long before we see if DE-Coupling is going to happen.
Mike

[grapejelly]

Re: so dad, what did you do during the Depression of 2008?

It will be differant this time, Russia & China+India Etc...Their living standards are going UP, thus ours MUST fall.

We don't have long before we see if DE-Coupling is going to happen.
Mike

no chance of that, IMHO. China is under US$1 trillion economy...ours is over US$12 trillion. Decoupling???

[Sidewinder]

Re: so dad, what did you do during the Depression of 2008?

no chance of that, IMHO. China is under US$1 trillion economy...ours is over US$12 trillion. Decoupling???

Do hope you are right... Tough to see a good outcome though...

[touchring]

Re: so dad, what did you do during the Depression of 2008?

no chance of that, IMHO. China is under US$1 trillion economy...ours is over US$12 trillion. Decoupling???

Consumption from the rest of the world is holding up China exports. Let's not forget that the world is still doing well (unemployment low and imports high), at least for now.

The yen and euro is strong, so is the canadian and australian dollar. They more than offset the fall in the american dollar.

[Guest]

Re: so dad, what did you do during the Depression of 2008?

Got to agree with Touchring on this Grapejelly.

no chance of that, IMHO. China is under US$1 trillion economy...ours is over US$12 trillion. Decoupling???

[tombat1913]

Re: so dad, what did you do during the Depression of 2008?

Well sonny, since your old grand pappy has a strong distrust for "the man" he procured the 3 G's. Gold http://www.libertydollar.org/, guns http://www.berettausa.com/, and groceries http://www.efoodsdirect.com/. Then he joined a class action lawsuit against the FBI for stealing his gold, but that was before things got really bad.

[Slimprofits]

Re: so dad, what did you do during the Depression of 2008?

I've been living in Northern California for the last couple of years, employed in a discretionary spending industry...

With some cash saved up and connections to be utilized (employment), I was thinking about moving back to Massachusetts and in enrolling in classes, with a short-term goal of gaining employment in the health care industry. One of my long-term goals is to buy a home in Mass. or Southern New Hampshire - after the markets hit bottom.

There is a window in June when I could make the move and the housing rental market in Massachusetts usually contains the most stock during the summer months.

Should I make the jump?

[Jim Nickerson]

Re: so dad, what did you do during the Depression of 2008?

I've been living in Northern California for the last couple of years, employed in a discretionary spending industry...

With some cash saved up and connections to be utilized (employment), I was thinking about moving back to Massachusetts and in enrolling in classes, with a short-term goal of gaining employment in the health care industry. One of my long-term goals is to buy a home in Mass. or Southern New Hampshire - after the markets hit bottom.

There is a window in June when I could make the move and the housing rental market in Massachusetts usually contains the most stock during the summer months.

Should I make the jump?

At 67 and making some reasonably important decisions over the past 40 years, I wonder how did I make it--not having the universe of anonymous knowledge and advice the internet offers.

Seriously, babbitd, is it possible anyone here knows more than you do about your situation? And if anyone here were appear to know more, how do you know they know squat?

Get back into your box, put on your thinking-cap, figure it out for yourself so that you can take full credit if correct in whatever decision you come to, or feel wholly responsible in you screw it up.

[Rajiv]

Re: so dad, what did you do during the Depression of 2008?

no chance of that, IMHO. China is under US$1 trillion economy...ours is over US$12 trillion. Decoupling???

That comparision is not quite accurate -- because you are comparing GDPs based on current exchange rates -- convert everything to man hours -- and you will see an entirely different picture.

Sample conversion:

1 hour of Chinese skilled factory labour $0.64
1 hour of US skilled factory labour $21.11

ratio 33

Source: Just How Cheap is Chinese Labor?

Therefore $1Tr of Chinese GDP is actually equal to $33Tr US GDP

Just another artifact of the FIRE economy

[Slimprofits]

Re: so dad, what did you do during the Depression of 2008?

At 67 and making some reasonably important decisions over the past 40 years, I wonder how did I make it--not having the universe of anonymous knowledge and advice the internet offers.

Seriously, babbitd, is it possible anyone here knows more than you do about your situation? And if anyone here were appear to know more, how do you know they know squat?

Get back into your box, put on your thinking-cap, figure it out for yourself so that you can take full credit if correct in whatever decision you come to, or feel wholly responsible in you screw it up.

It hit me while reading America's Bubble Economy last night that my entire situation in NoCal was dependent on various bubbles and that it is all coming to an end very soon.

I've spoken to trusted friends and family, sharing more personal details with them and am well on the way to making a decision.

Your point is taken, but the reason I posted the question here, near endgame, is that without Itulip, Inc. and some of its reader contributors, I'd be about 3/4 of the way in the dark. Unfortunately, no one in my circle saw any of this coming...

[tombat1913]

Re: so dad, what did you do during the Depression of 2008?

I think Mr. Nickerson is right on the money. However, it also helps to have some outside perspectives to sort through all of the info. I take into consideration the population of the area where I reside. Economy declines, unemployment goes up, crime rates go up, and there's alway more crime in big cities. Also, I know it's called the "live free or die" state but Mass. has some of the highest taxes and most socialist laws east of the Mississippi. So why spend the moving cost to trade west coast socialism for east coast socialism? Just some food for thought.

[raja]

Re: so dad, what did you do during the Depression of 2008?

Also, I know it's called the "live free or die" state but Mass. has some of the highest taxes and most socialist laws east of the Mississippi.

I believe that New Hampshire is the "Live Free or Die" state.

[c1ue]

Re: So, Dad. What did you do during the Depression of 2008?

That comparision is not quite accurate -- because you are comparing GDPs based on current exchange rates -- convert everything to man hours -- and you will see an entirely different picture.

Sample conversion:

1 hour of Chinese skilled factory labour $0.64
1 hour of US skilled factory labour $21.11

ratio 33

Source: Just How Cheap is Chinese Labor?

Therefore $1Tr of Chinese GDP is actually equal to $33Tr US GDP

Just another artifact of the FIRE economy

Rajiv,

The problem with this comparison is your assumption that this labor cost differential also means that there is consumption equivalence between Chinese and Americans.

But, since said Chinese products are being made only for export, then it is irrelevant what the relative wages are.

Someone is reaping the product cost vs. product sale price differential, and therefore when American consumption goes down, that same someone is going to make a lot less money.

This smaller profit equal fewer jobs both in China and the US. Only should China replace the American consumption would a US slowdown not matter much.

Sure, there is some disintermediation that can occur; removal of one or two US layers of importers/distributors drops the necessary 'X' input of purchasing to net a similar net profit, but it isn't anything close to the labor differential.

Or in other words, just because a Chinese makes a hammer for 33 cents and an American would make it for $5 and instead buys it for $5, does not mean that the overall economic impact is identical if the Chinese buys the same hammer for $1.

[Nervous Drake]

Re: So, Dad. What did you do during the Depression of 2008?

.