Are we heading into a full out depression ala the 1930's?I give you three points to ponder...
1. I'm currently watching the HBO series, via Netflix rentals of "Carnivale" on DVD. Total immersion into the Great Depression and it's effect on the American Heartland.
2. Many of my customers that call me each day are from our company's territories which unlike competitors like AT&T and Verizon, seem to be the low-end of the socio-economic strata, so I hear sob stories everyday, and see account after account in "the red", on the verge of losing their telephone service for non-payment. When you can't pay your phone bill, usually, failing to make your rent or mortgage isn't far behind.
3. And finally, there's this news below from today's Christian Science Monitor on our most recent woes on Wall Street...
Like I said...
Brother, can you spare a dime? I think I may need it.
After all, just five dimes or so will now buy a share of AIG stock.
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Concerns about banks and AIG weigh on markets.
Dow plunges to nearly a 12-year low.
Before there was a 9/11 or a Bush presidency or Google or a public scandal surrounding Monica Lewinsky, there was a stock market that stood higher than current levels.
The Dow Jones Industrial Average plunged 250 points Monday to close at 7114.78, a nearly 12-year low. The last time the stock index closed below that level was May 7, 1997.
The S&P 500 also effectively erased more than 11 years of gains Monday, falling 26.7 points to close at 743.33. The technology-heavy Nasdaq index dropped 53.5 points to close at 1387.72 points, a level not seen since the dot-com bust of 2003.
Federal assurances
The market moves came despite government assurances Monday that the US stood ready to back the financial system and a White House fiscal responsibility summit heavy on rhetoric about reducing government spending eventually.
Many analysts said they were waiting for details from the administration about how it would stabilize the banking system.
Worries over AIG
Also weighing on the market was a CNBC report that AIG, the tottering and mostly government-owned insurance giant, would announce losses of nearly $60 billion. That would represent the biggest loss in US corporate history.
In a statement, AIG said it would release financial results “in the near future.” The company said it continues “to work with the U.S. government to evaluate potential new alternatives for addressing AIG’s financial challenges.”
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