GM is near bankrupt - stock lowest point in 75 years. Today its new low was like one set back in May 4, 1933 during the depth of the Great Depression. Things have certainly changed since 2004, the wolf truly is at the door.
Well, even though GM is not bankrupt yet, the decline in the automobile giant is having an effect, unemployment rates in midwest are up.
| Ohio | 8.8% |
| Indiana | 9.2% |
| Michigan | 11% |
When americans lose their jobs they cannot pay for houses, this in turn causes banks to fail and property prices to fall. As property prices fall the banks are loaded with worthless properties that they cannot sell. It is a perfect storm.
This was cause by offshoring and outsourcing work to countries like China and India. All those factories that move to China and businesses that send programming jobs to India now find that the US is falling apart.
I have talked to people that lived through the Great Depression. They call it the awful depression and told me horror stories of starvation and suffering. It was a time like no other. They do not have pleasant memories of the 30's. The music of the times is sad and so the the photos. Here are photographs of the Great Depression.
This month the dow has tumbled DOWn like a train off a cliff with the occasional bounce on the way down. We have seen terrible losses that seem right out of the Great Depression. People wonder when our stock market will hit bottom. Last Wednesday, S&P500 fell 9% in a single day our biggest percentage loss since the meltdown of 1987. Today poor economic news is making a bad situation worse.
Selling is accelerating as people dump mutual funds and buy safes to store cash. Banks are talking about imposing restrictions on cash withdrawals. Also there is talk that the government might make private ownership of gold illegal again like they did during the Great Depression. Which makes sense because analysts see a widespread global depression that may take years to exit.
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