Yastrow: “We Are on the Verge of a Great, Great Depression”

George Washington's picture

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Manzilla's picture

Everything isn't just alright it's SUPER! Thanks for asking.


Just imagine Uncle Ben or Timmy in the place of Big Gay Al:


mogul rider's picture

For the "I have to have info immediately on my JPOD and I want this depression to end" crowd, the long emergency must really give you fits.

Just think every morning you wake up and it gets slowly worse. It must bother you greatly knowing Marty Armstrong's 2015 crash is still 4 years away.

The hyper inflation crowd said we'd have it by now (John Williams in particular) It has not happened. We have deflation in  many core areas and inflation in a few driven by spec cash from the chairsatan. Is that hyperinflation? No it's a short term party fuck and when the cash register shuts off at the end of the month the bottom will probabaly fall out of the market and everything else a'la 2008.


Why you say? Cause the elites are cashed out now unlike 2008. Joe Public is holding all the crap and it can easily be taken out now with little colateral damage to the elites. Hedgies will get slaughtered but that is what those fuckasses are for.


Where are PM's going? Who the hell knows. Many of you sit on your side of fence absolutely sure of your convictions cause that is what you taught to do all your life. Take a side.

You are about to have that notion bend you over. You see your stridency is your failure.

Adapt or perish bitchez cause everything you hold dear is just part of the machine world.


You absolutely know that gold is going to 1850 then 5000.

You absolutely know crude is goign to 200.

You absolutely know that Silver's real number is 135.

My point,

They are about to turn off the machine world electricity.


You are on your own now.

monkeyboy's picture

Do you have a date for when they're going to flick the switch?

Need to add "get more candles" on my to do list.

Heroic Couplet's picture

None of this is news. It's been in place for the past 11 years. If you're unemployed, get to your local Republican leaders' offices. Conduct your job search from there. The address, computers and fax machines should be yours. The Republican tax cuts have been in place for a decade. Where are the jobs in the US?

monkeyboy's picture

So this is bullish for the markets?



Spirit Of Truth's picture

The fundamental problem is that man as a species is literally insane:


What is the cure?

Gadocat99's picture

After you read any current economic/political article, if you will say these words: "They are trying to destroy the United States", it will all make perfect sense.

Freddie's picture

CBS "News" 60 Minutes video talks about O's Hope & Change Depression. Meanwhile, CBS and the rest of the news and all of TV kiss the Kenyan Mugabe's arse at every turn.  Scum liberal news media, TV and Hollywood.

the grateful unemployed's picture

so who is the guy who walks into the background and grabs his nards about 2:20 into the piece. nice move really, yeah we got your market hangin

Laddie's picture

JPM's Kelly just said today that there won't even be a recession and it is a GREAT TIME TO BUY A HOUSE. GW, wrong on Fukishima, which is no threat to anyone, even in Tokyo where it was announced today by Brian Williams on NBC that background radiation is now normal there and in rest of Japan.

So you see GW the economy is STRONG, and there is no health threat even in Japan from the BIG FUK.

The above is from today's news and the worst part is the lemmings will accept it just as in my sarcastic commentary.

This is what MSM is telling the American people.

GW is right as much as anyone on ZH is right, time after time after time.

Keep up the good work GW!!!

Whatever the State saith is a lie; whatever it hath is a theft.
-- Nietzsche

Greenhead's picture

Sorry I'm late to the commentary but I disagree with the conclusion "Fraud and inequality" are the cause...  They are important but are not the cause of the problem.  The Fed's easy money, fiat printing, money expansion, low interest rate promotion was the cause in both cases.  Fraud certainly is part of it, "magic money" certainly is fraudulent at some level and corporate cronyism coupled with political cronyism and vote buying are part of the problem as well.  There will always be inequality, get over it. 

The problem is when inequality is protected and insured by corporate cozying up with the government to protect their turf and discourage competition.

Read Mises' "Theory of Money and Credit" for the easiest explanation of the boom bust cycle caused by interest rate manipulation by central banks.  Oversimplifying and playing to class envy and warfare is beneath the other work GW has done. 

AurorusBorealus's picture

For many years, historians taught that overproduction and the extension of credit were the primary causes of the Great Depression.  Workers produced more than they could purchase, credit expanded to consumers (financing of automobiles and new appliances) to make up the difference.  The expansion of credit led to default, on the part of consumers and investors, followed by a run on banks.

This all changed with the revisionist history of economists, which began in the 1960s.  The Federal Reserve's tight monetary policy, the gold standard, trade barriers, and so forth became the primary causes of the depression.  The historians who spoke of overproduction and credit expansions were all marxist-leninists.

Whether those all historians were Marxist-Leninist or no, they were correct.  Monetary policy, Smoot-Hawley and so forth were secondary to the depression and inconsequential.  Today the world is much more complicated in that the Americans and their government borrow to pull overproduction from many parts of the world where laborers can never hope to afford anything they produce and the entire global overproduction matrix is tied up in the global-dollar-reserve financial system.  But the hallmarks of overproduction are there.

The only solution is allow the large financials to collapse and deflate all currencies so that workers and wage-earners can afford to purchase goods and services.  All wealth cannot be held in the few cups closest to the money spigot.  And that is the world we live in today.  After the inflation, there will be depression, the likes of which only God can comprehend.

AurorusBorealus's picture

The tragic result of the revisionist history is Ben Bernanke and his ilk who wrongly believe that a hard-money policy caused the depression and therefore the solution is easy money.  The fact of the matter is that monetary policy does not have the power attributed to it.  In their attempt to better "manage" the economy, this time around, they have financed enormous inefficiencies, which will take all the worse of a depression to clear out.  One such inefficiency is the entire U.S. economy.  Another is all of club med countries, who like the U.S., produce much less than they consume.

OutLookingIn's picture


 Yea? or Nay? On Depression.

If you have money or enough money - Nay.

All the rest of us - Yea.

Now, where does the majority lay?

I thought so.

Careless Whisper's picture

GW, now ur linking to Stiglitz and Soros? WTF?

PulauHantu29's picture

With all the wars going on how can there be a depression. Didn't WWII pull us out of the other Depression?

Use of Weapons's picture

The trick to a successful war revamp of the economy is to have countries with fantastic industrial prospects losing. Losing to the extent that they have nothing, and it all has to be rebuilt from scratch. [GE - reactors - note well].

Afgan, Iraq, Libya - these really aren't cutting the mustard for investment opportunities. If you didn't notice, nor were Vietnam, Korea or Cambodia.

>> Deadly irony: this is no longer possible anyhow, since all the major transnational capital companies are at work within them anyhow, so output cannot be maximised, unless you can find one truly scorched earth scenario. And that, at this point [given the lack of military in opposition] is the neutron option.




Good article, thanks.

Caveman93's picture

Huh?? I thought everything was recovering just fine as I sit here collecting my weekly Funemployment check. Weird, just weird.

garden empire's picture

 The QE's, Tarp, and other handouts of the last two + years did me a personal favor.  It slapped me out of my consumer stupor and basically put a neon sign in my window that said "WE ARE BUYING YOU TIME YOU IDIOT, NOW USE IT WISELY, AND DON'T SAY WE DIDN'T WARN YOU".  So that is exactly how I have used this time.  2 + years ago, I would have never been this prepared if the rug was pulled out from under me. Their intention was never to fix the problem, it was to buy time.  I believe that with every ounce of my being.

Creepy Lurker's picture

Spot on. I was in the same consumer stupor, then one day I woke up, looked at the news and said to my spouse, 'Holy fuck Babe, they're monetizing the debt!' I've been scrambling as best I can ever since, but I still worry it's not enough.

bullet357's picture

Leave the city Now while you can.  Two words to live by in the coming days: FOOD & AMMO

Reese Bobby's picture

Which city?  Should we bring our food and ammo?  And can I wait until tomorrow?  Where should we go?  Will you keep posting your wisdom/instructions here so we'll know what to do?  So many questions, so little time...

bullet357's picture

Leave the city Now while you can.  Two words to live by in the coming days: FOOD & AMMO

bullet357's picture

Leave the city Now while you can.  Two words to live by in the coming days: FOOD & AMMO

bullet357's picture

Leave the city Now while you can.  Two words to live by in the coming days: FOOD & AMMO

Atlantis Consigliore's picture

I love it when a plan comes together,

first you destroy the storage of wealth of the middle class:  homes by increaseing the supply with fraud and no doc loans,  for lending to the POH and disenfranchised, regardless of qualfication.


then you destroy the value of the dollar by

printing TARP, QE 1, QE2, and bank bailouts,


then you get everyone on the DOLE,

42 million on foodstamps, destroy 8 million jobs, and make the corps hoard 2 Trillion in cash offshore,


then you regulate the business class to death

with laws, regs and Czars,


then you wait for that little disaster, another N Loreans, or Fuckuyoushieeda, 

and of course on Que,  you pull out the

Madoff, whos been stealing robbing and thieving the system with the regulators for 10 years. +;


the result:  destruction of the US Economy;

a welfare state, whith 55% on the dole

the needers feeding off the makers,

with the POLS, and the printers, and the

crooked gangsters lobbying and pointing fingers.

Socialism:  looks like Soros and his lefty ilk

broke it good this time;

Nothing to watch here,  fuggedtabout it, and

watch Prancing with the Printers, and American

Lobbyists.  LOL

sniff:  I love the smell of 6 million homes

burning in foreclosure in the morning.>

P-K4's picture

The article loses credibility right about here, "  The following experts have - at some point during the last 2 years - said that the economic crisis could be worse than the Great Depression (i.e. specifically Bernanke, Greenspan, Krugman, Soros)." I would sooner trust a crack addict in Detroit with my life before I would believe these guys.


Other than that, the article is spot. All stated facts and reasoning will be used to support raising the debt ceiling in the Finance World of Bizarro.

Buck Johnson's picture

The US and Western banking manipulations of the market reminds me of the Startrek Voyager episode "The Year of Hell".  In this episode the ship is fighting a powerful species that was made possible by members of the same species changing the timeline in order to get things "right".  And in so doing made their species extremely powerful and where fighting the ship over the course of a year.  They eventually figured out what was going on and capt. of voyager rammed the Krenim timeship destroying it and moving the timeline back to what it should be. 

Our market manipulators (the fed, govt., banks, etc.) are the Krenim.  Making changes in order to keep things "normal" to them.  The problem that the Krenim and our manipulators didn't and couldn't figure out is how can you perform heart surgery on yourself.  Meaning how can you manipulate a system successfully that you are a part of.  Just like the alien time shifters, their objectives where just out of reach.  You keep adjusting the variables to delay or enable a condition not taking into account that their are variables that you may never be able to account for because of your blind spot that all systems and individuals have (it's just second nature).

People in the market know that a monster is looming just under the water, and they want onto a shore any shore to weather out the outcome.  They don't know what the monster is, but they know it's there waiting and watching.

Creepy Lurker's picture

The Butterfly Effect. (the movie)

Reese Bobby's picture

Banking Cartel reminds me of the NY Yankees.  They have every advantage but still manage to mainly fuck everything up while only they get rich.  Meanwhile the owners jack up prices so high the true fans stop going to the games and a bunch of yuppie douche-bags get the good seats and sit on their hands.  Many keep hoping the lowly NY Mets will make a run to fix things but their owner has lost his money to some finance cock-sucker who the Yankees knew was a ponzi scheme.  But there could be a Krenim or two on Boston or Philly...

Madcow's picture

 " ... temporary ..."

- yes. from 1940-2005, we had falling commodity prices and rising financial asset prices. Starting in 2008, that dynamic went into reverse. But it is only temporary.  As the virtuous cycle lasted 7+ decades, the vicious cycle of rising commodity prices and falling financial asset prices should only last a couple of decades.

kito's picture

one bad day and everyone is calling for the sky to fall. stagnation has its ups and downs. nothing has really changed, but it doesnt mean we are heading over the cliff yet. that wont happen until bond buyers change their perspective. and judging by today, they love them treasury hotcakes

akak's picture

And by "bond buyers", you of course mean the Federal Reserve itself (and almost exclusively).

So when do you expect them to "change their perspective" on bonds?

huggy_in_london's picture

the street is short ... it could run a fair bit more.  

huggy_in_london's picture

and also, you are in an asset price deflation ... only reasonable that fixed income rallies

kito's picture

bond buyers, who eagerly snapped up spanish bonds today, are a long way off from turning on the u.s. we would have to see the end of greece portugal spain ireland before sights are turned on us. we are still the only game in town. still the bastion of safety. and if fixed income rallies becuase there is asset deflation, then isnt the bond market telling us u.s. treasuries have worth?

rsnoble's picture

Well being known for a total asshole when i've been drinking, like now, I will go on record and say that I have a feeling ill be getting a lot more sex during the depression than I normally would.  Sorry, but after all the doom and gloom and ranting and raving I do I have to have something to look forward to, even if a carton of eggs gets me a headjob and not my good looks.

Kreditanstalt's picture

YASTROW SAID IT ALL!  Well done...

@Watcher's picture

The Fourth Turning

An American Prophesy

by William Strauss & Neill Howe


(see Googlebooks)

ebworthen's picture


Notice that Yastrow says "The bears had better be careful because dividend paying stocks are hard to beat."


This is precisely why we will have QE3.

The FED is pumping equities and the markets to recapitalize banks and investment houses via pension and private (household) money.

They want to force investment in equities versus savings, precious metals, or paying down debt; the banks and the governments are insolvent - therefore they must bleed the assets of the middle class as the poor don't have any and the rich will flee and/or hide it overseas.


Parth's picture

Since I immigrated to USA I have had few opportunities to go camping, hunting and fishing (India my native country is simply too crowded and polluted to do that). I can't wait for this greatest depression. Marshmallow toasting tips anyone?

blunderdog's picture

Oh, this is easy.  *I* used to be a Boy Scout.

Light the marshmallow on fire.  Let it burn for about 3-5 seconds.  Blow it out.

LET IT COOL!  The inside will be very gooey and will stick to your lips and badly burn you if you don't play it safe.

Enjoy the crispy outside and gooey sweet center.

gmj's picture

Do not hold your marshmallow with your fingers while toasting it. 

Do not toast your marshmallow over any heat source that is clearly emitting Cherenkov radiation.

US Dollars are a cheap and readily available source of fuel for your fire, and are easily ignited.

Marshmallows made in China should not be exposed to open flames.

Any leftover marshmallows should be packaged into a MBS (marshmallow-backed security) and sold to Goldman Sachs.

@Watcher's picture

So what's new.

Idiots at CNBC "reveal" something that's been long in the making.  Dumb@ss mainstream media.

Bob's picture

And blaming it on US wages being out of line/uncompetitive, our only hope being to somehow get those wages down . . .


Texas Ginslinger's picture

"Purchases are really dropping off by the end of the month even more than last year," Duke said. "This end-of-month [purchases] cycle is growing to be a concern."

To cut costs, Wal Mart could close their doors and shut off the lights & HVAC the last week of every month.


akak's picture

But then, wherever are you going to buy all that dog food whose rising price was formerly  the very nexus of your financial angst in this forum?

Atlantis Consigliore's picture

Quick, we need a tax increase on small business, and more regulations to teach them a lesson if they wont hire;

Hey Chicago;  hurry up; dummy, open them

Casinos, and buffet lines,  let the FED print

markers,  we got $ 8 B of munis to sell? 

Rename Chicago, Athens by the Lake.

A crises is a terrible thing to waste?

Sniff sniff sniff,  I smell 6 million homes burning.