Economy collapses. What happens where you live?

In the past few months, the USA has seen many banks close. Most people in the USA don't own their own homes. They buy them with mortgages that they get from banks. Banks lent more money than what people could pay back. Now banks have taken back millions of homes and thrown people out on the streets. The US Treasury and Federal Reserve has just bailed out two of the major lenders by guaranteeing the stock of these companies with more money than the US government really has. This is part of a worldwide Economic crisis that could see every major country in Depression. The US and the world had a major Economic Depression in the late 20's and all of the 1930's. It was a terrible situation. The US and other countries have advanced in so many ways since then. Lifestyles have changed and grown. When the next Depression hits, most people that lived through the previous one won't be alive to tell about what it will be like. 

My question here is: When this Depression hits first in the USA and then around the world, what kinds of things happen where you live? How does life change? What things will you have to give up because you cannot afford them? Will there be more crime and illness where you live? 

Nobody know for sure how bad it will get, but you can imagine and describe different scenes using the questions I've asked as a basis for your story. I will do the same, so you can see what I mean. It is a good thing to think about. Don't you think so?

The government printed another $80-billion+ to bail out AIG! We know this phony money thing is worldwide. Russia shutdown its Stock Exchange for the second straight day due to losses.

It should be fairly obvious now that most of the world's money is not real. It doesn't represent anything real. It is just a tool to keep the rich people rich and the poor people poor. It is a note from the rich to the poor telling them what their status is in the world.

I wonder why poor people don't revolt? Why do they just accept their second-class status? Surely the poor outnumber the rich in the world?

Situation is becoming extremely complicated all over the world. We will see how the markets reacts until the weekend… I agree with you, I don't know why but people don't seem to or don't want to understand the magnitude of this situation in such as globalization economy. Maybe they think this situation isn't going to affect them at all…

Turnedo -

Very complicated. Today they printed up more fake money! $180-billion! China is to buy Morgan-Stanley and after dropping so much, the NYSE is up again. It is a real-life Monopoly game. It is like everyone is also on drugs.

A friend sent me a link to an interesting blog:

http://market-ticker.denninger.net/archives/584-The-Potential-End-Of-Americas-Government.html

It's a blogger. Take it for what it's worth. Still, food for thought.

Many americians will die hungry.No country would be able to supply goods against printed papers.Because when a note don't have purchasing power it remains just a printed paper.How long china would be able to supply goods against the money who don't have purchasing power.How long chinese government be able to befool the people ?

Every one has to realise the reality.No one can consume more than what he produce.or there shall be wars & the whole system may collapse. 

devindernagpal -

You'd think that, wouldn't you? Nothing seems to make sense. After telling the world that they've printed up money out of nowhere… Stories today tell that this mess is costing the Treasury $1-trillion, still the world markets are up! The pound's value sunk against the dollar! 

I feel like I'm on drugs reading these stories. They defy reality. It is like having vertigo!

Another bank was seized by the government in US. Asian markets were miserable. Europe as bad. They will loan these banks in the US and overseas over $700-billion. This will make each American – all 300-million people here, man, woman and child – in debt for over $2-thousand each!!

I wrote about the hurricane before. Today in the news it showed gas stations in Texas where there are shortages of gasoline. People are fighting with each other.

Michael Moore says to NOT bail out the banks. Let them go bankrupt. Let the rich lose everything they have!

http://www.michaelmoore.com

The best choice is to let the businesses bankrupt. Close up. Business around the world will pay the price, but this is the big "correction" that the world needs. As a consumer society, the USA purchases more products than it needs or ever really uses. This causes mass employment around the world that is unnecessary. It causes the overuse of natural resources. It is time for the USA and the world to get right. Time for the USA to use less; time for countries like China to manage its workforce to produce more for its own consumption and rely less on export for its prosperity. The current system has created a bubble that is destined to burst, sooner or later.

US stock market dropped nearly 700 points today. News is that even Dubai's Economy is in trouble with bad credit. Businesses are laying off more and more people. Gas prices have dropped some as have home prices. Some stores here have reduced their services and raised their prices. Friday will be an important day in the stock markets around the world.