Remember 1932

In 1932 although times were certainly getting harder with bank failures and unemployment rising, no one at the time was saying that they were in a depression. It is only from a historical perspective that we date the "Great Depression" from 1929 to 1939. At the time they considered what they were in just a recession. As things got worse after the election of 1932, the powerless Hoover asked FDR to help, but FDR said that he would wait until he was sworn in.

In my opinion, and I think this will be backed up historically, we have been in a recession since last December. I think this October or end of September will be called the beginning of the Depression of 2008. And things will get worse. The stock market will go down to 8,000. More banks will fail and more businesses will fail for lack of credit and lack of customers. This "Rescue Bill" will take months to implement and even then may not work.

There are very few elders around who were of working age in the Depression. They are the only ones who have real memories of that time. Who did OK and who did not?

Although our parents are gone, we remember some of what they told us of those times.

Debt free family farms that were not in the drought regions did fine. So my mom's family did OK and even sent her to college in the 30's. Bill's dad's family did not do so well because of the drought in Nebraska. His dad worked at any kind of job he could get and even rode the rails for a while. My dad joined the Marines. Bill's mom worked as a housemaid and was forced to give all her money to her parents. Everyone scrimped and saved and developed a habit of living low. It was the only way to get by.

All of us are going to need to develop some Depression ethics. Scrimp and save and live low and you will get by.