Quote:
Originally Posted by The Closer 
The reason why so many people are as afraid as they are is because the media cant stop talking about it. Those who actually pay attention to both leading and lagging economic indicators (the ones who dont simply watch the news or listen to talk radio) realize that what we are going through now isnt anywhere close to being close to the Great Depression and has much more in common with what occured in the mid 70s.
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Oh there is no doubt the media is a big problem here. Turn on CNBC and there is some old guy throwing his hands in the air and screaming "Americans are not buying anything! They're not buying cloths! They're not buying cars! They're not buying off! And the never will ever again!". But I think the media's primary affect is on the consumer, not business.
I work in sales and most of my prospects and clients refused to spend any money at all, or even finalize budgets for 09, until about two weeks ago.Even though I work in Hi Tech, (Which mythology says is not dependent on Government spending) everyone is waiting and watching the Obama administration and Congress very closely.
But never mind my personal anecdote, look at how the market reacts to every utterance of Obama, Bernanke etc.
And while I agree this isn't a Great Depression, I do think there will be a major lowering of people life style and spending habits. In the long run I think that is good, but the transition period will be rough.
Also this is another wave of a transition from manufacturing to services which has been going on for decades. Those jobs just ain't coming back, and the jobs that replace them won't be as lucrative.