as paul krugman says, yikes!

We may need to find a name for the Depression. Depressions are kind of like Hurricanes and tropical storms. The last two depressions were called the Long Depression (1873-1896) and the Great Depression. How about the W Depression?

Well, now that the election is over, the NBER decided it could now admit that we've been in recession since last year. Although it seems like, if we haven't been in a Great Depression since 2001 we've been in a great economic plateau since then.

1.) The Depression we're now entering--at least according to some folks whose opinions I value--is being called: "The Greater Depression."

2.) I'm hearing that tomorrow's considered to be a big, big day in D.C., as far as the auto industry's concerend.
   Rumor #1: The CEO of Ford Motor Co. is supposedly driving to D.C. from Detroit, essentially, attempting to turn his appearance into a publicity stunt. (Dayum! These guys just aren't getting how smug their actions appear to us normal folks.)

  Rumor #2: A big question tomorrow is whether or not the Chairman of GM will acknowledge the rumors that have been circulating around the retail auto industry with regard to the supposed reality that GM fully intends to ditch four brands, as part of their business plans that they're going to be presenting to Congress tomorrow, including the axing of: Hummer, Pontiac, Saab, and Saturn. Just these rumors are already having a dreadful effect upon the tens of thousands of folks associated with the manufacture and sale of these brands. A public pronouncement confirming this would be brutal and immediate, at least in terms of its profound effect on a localized basis, around the country.

It scares me how readily some so-called Progressives are so quick to write this off, with a big "Good riddance," without thinking it through. Just a couple of the many hundreds of examples of the after-effect of this type of announcement:

A.) Parts of Tennessee would be devastated by the Saturn brand shutting down, not to mention the hundreds of dealerships across the country...speaking of which...

B.) I'm about 15 minutes from Danbury, CT and an hour north of upper Manhattan (locations of two fairly new Saturn "stores"), for instance. This means major "holes" in retail shopping areas springing up virtually overnight in these areas, not to mention the loss of a couple of hundred jobs. Perhaps, even more important, from a bigger-picture standpoint, these soon-to-be empty large pieces of real estate bring surrounding commercial property prices down, and they signify the loss of, literally, millions of dollars in annual sales tax revenues, just for those two location...for just one GM brand.

So, multiply that time many hundreds...just for one GM brand...than again times four...since we're talking about four GM brands altogether...then multiply it all AGAIN, times about three (to account for all of the supporting/service/manufacturing business that goes along with that), and THAT is what we're losing...as a nation.

And, puhleez...don't tell me about how we'll all benefit in the longer-term...especially if you're someone still with a job, food on the table and a roof over your head...because you're just not getting it!!!

yes lets all believe this is the great depression and jump out the window..

that will help!

http://www.dailykos.com/story/2008/12/2/ 13845/1765/823/668365

This is the Beginning of the Bush Depression - $2 Trillion Credit Lines to be Cut

To anyone that doubts what's going on here, let me tell you plain and simply what's happening (because I live in this world, professionally, everyday):

There are roughly 10 companies that control most of the consumer/retail credit in this country. And, while the link above is about the current/ongoing corporated-induced Depression being imposed upon the middle-class, these corporate credit-grantors are running off with Trillions of Dollars in taxpayers funds while perpetrating the truly hardcore damage that will make the middle class suffer for many years starting right about now!

You see, it's not just the middle class that's going to pay the price for this, it's going to be most of the small business people in this country that rely upon these very same credit lines to drive not just consumer financing but their very own cashflow management efforts for their own businesses.

I run a company that processes consumer finance transactions at point-of-sale, and the reports from the field over the past few months have been devastating concerning the activites of: Bank of America, JPMorgan Chase, Citigroup, HSBC, GE Credit, Wells Fargo, and two or three others.

They have pulled inventory financing from entire sectors, wantonly, without even giving notice to the businesses.

They are declining consumers with 760 FICO scores--people in the uppermost quintile of the credit spectrum. (The best of the best.)

Meanwhile, these companies have received over a trillion dollars in direct and indirect bailouts, directly (just these companies, alone), as those that don't see this for what it is put forth the same BushCo excuse we heard about the mortgage mess: "It's not the banking industry's fault, it's those greedy consumer!"

You see, in today's society, pulling $2 trillion in credit from the consumer population is the same as inducing a Depression; it's just not being referred to as that!

Oh, yeah, one other small, overlooked detail: the US consumer credit portfolios of these co's don't even add up to $500 billion, to boot!

What difference does it make whether consumers and small businesses get pillaged openly or on a not-so-obfuscated basis.

It is what it is!

Remember this next time you hear of the government "supporting" GE Credit with a $130 bailout/backstop!

We're being f**ked right now...and those in the know already know this! This is all happening before Obama takes office, and he'll be able to disassociate himself from this fiasco, because the damage will have already been done!

Pretty tidy stuff if we allow it to go down this way, IMHO.

And, yeah, I'm going to burn a sacred cow now, too...Joe Biden had a nickname in the Senate, where he represented the State of Delaware...it was "Senator Credit Card." Otherwise, I love the guy, politically...but, this is one area where we MUST call them out on this b.s. right now...because the damage is going to be done by January 20th, and it'll be too late to do anything about it!