Finance and Economics > Investing and Saving

"The Great Depression of Debt: Survival Techniques for Every Investor"


In 2004, Warren Brussee wrote, "Come 2008, the number of people giving up on making house payments will skyrocket . . . banks will be forced to foreclose on homes and sell them, causing a glut of homes on the market and a deflation of home values. . . . You will be able to get a great deal on a used SUV, especially a Hummer!"

These are just some of the author's gloomy, but accurate predictions that have come to be part of today's economic reality. But, says Brussee, the worst is yet to come: the problems are so severe that it will take until 2013 before the economy bottoms out and begins to grow. In the meantime, the stock market will drop dramatically, unemployment will be over 15%, and our country will be humbled as it is forced to adapt to a far lower and simpler standard of living. In The Great Depression of Debt, Brussee offers a detailed economic analysis of the difficult years ahead, telling what to expect and how to survive the next great depression.

The author clearly lays out the circumstances that have led to this situation—the craziness in the nineties' stock market that encouraged people to stop saving and start speculating, consumers who began spending more than they could afford, as well as other factors—and outlines the similarities between current times and the years just prior to the First Great Depression. Brussee explains in detail what individuals must do to get through it: keep a job, limit debts and return to saving, and stay away from the stock market until it hits bottom. The author also reveals how the country will emerge from its economic troubles, telling how effective job creation in alternative energy, electric cars, and the required infrastructure will be key, along with training for related skills.

The one thing I look forward to is a more simple life, I hope others find that a positive as well.

Personally, I don't see the panacea in alternative energy.  Sure, it will be big, but how many people will it really employ?  GE will shift from making coal and gas generation facilities and increase their wind and solar business.  What will the net be?

I think the answer will lie with a reduction in everything - regression to the mean.  We will do with less, produce less and buy less.  Banks won't run double digit growth for two decades like they did in the past.

This all assumes gov't doesn't screw things up by creating yet another bubble somewhere else.


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