I don't know if you realise this or not, but we're heading for a Depression. Not the mental health kind, the economic kind. Think 1929. Think dole queues. Think soup kitchens. Think of people by the side of the road with signs "Will work for food".
Call me a Cassandra if you will, but all the warning signs are there
* over inflated house prices
* very high debt to income ratios
* unease verging on panic on Wall Street
* increasing food prices
* job losses
* a wildly fluctuating US dollar
* NSW mired in debt with major infrastructure projects on hold
* the US government bailing out three major financial institutions while they're running an enormous deficit and two wars
* oil prices
The repossessions and foreclosures have already started here and in the United States. Probably other places as well.
Nobody in government is saying it out loud. For the first time someone used the word "depression" on the TV this morning. I wrote about it last week on news.com.au. We are heading for a major, world wide depression the kind of which we haven't seen for 80 years.
This would be a really good time to cut up the credit cards and pay out any debts inasmuch as you're able.
Things are going to get a lot worse before they get better.
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