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Teach
07-11-2008, 09:19 PM
"Those were terrible times," my mother said. "The worst I’ve experienced," she added. "We were frightened. Yes, frightened."

Several years ago, before I had to place my mother in a nursing home, I would drop by her apartment every Saturday for a visit. On those occasions — over coffee and pastries — we’d talk. On one occasion, we talked about those early days when my mother was a teenager. Those days were the early-to-mid 1930s — the era of the Great Depression.

As we began to talk, my mother said, "Son, those were very bad times. Terrible suffering," she continued "In our household there was barely enough food to feed a family of six," she added. She went on, "My father -- your grandfather -- lost his job at the steel mill. He had to work for the one of the New Deal agencies. He was working for the government building roads and bridges in the middle of the winter. You know how cold Syracuse, New York can be in January.

"Well, my father got frostbite. He almost lost his ears. My mother knitted him a special hat that kept his ears warm. He was back out on the job a day later.

"There were soup kitchens and bread lines. Many people were desperate. You could see it in their faces.

"You know how I don’t trust banks," she continued. "It stems from my experiences during the Great Depression. There were lines and lines of people waiting to get their deposits out. Some people panicked. People started becoming agitated. Angry. The police had to be called in. There were people I knew who were wiped out. They lost all their savings! Their bank went under.

"I told you before there was scarcely enough food. We had an ice chest out in the foyer area just outside our kitchen. On two or three occasions, thieves stole what little food we had from our ice chest. We ended up getting a dog. The dog’s keen hearing let us know if someone were trying to break in.

"Yes, those were terrible times, son. I hope we never experience anything like that, again."

Well, my mother died a little over a year ago. I doubt she would have known or understood the difficult economic times we now find ourselves in. Yet, the parallels to my mother’s youth during the early-to-mid 1930s and our current economic predicament bear many similarities.

As a student and teacher of history, I’ve studied the era of the Great Depression. I do know that the decade of the 1920s that preceded the Great Depression was a devil-may-care, live-it-up era.

As I recall, it was one huge binge, especially as our country moved toward the late 1920s.

In those days it was "The Installment Plan, "A dollar down and a dollar forever." There were also people who were speculating in the stock market; they were "buying on margin". For as little as 10% down (and you could borrow that from a broker), you could be heavily invested in several stocks. That position was OK if the stock market keeps going up, but if it doesn’t...."it’s cover, cover, cover!"

Today, it’s real estate. Easy-to-get mortgages neatly packaged. But what if your house loses value? What if you can’t afford to make the payments. Ever hear of a "balloon" mortgage. The rates are very manageable for a while, but then, all of the sudden — "The bomb!"

Now, Fannie Mae and Freddie Mac may be in jeopardy. If necessary, it’ll be the taxpayers who bail out those agencies. "Too big to fail," they say.

Yes Mom, I’m very concerned. I don’t want my family to go through the hard times that marked your adolescent years. But I’m worried...just like you were.

As I recall, it wasn’t till we entered World War II that we fully came out of the Depression-era of 1930s. They say that history has a way of repeating itself. I pray that it doesn’t happen, again.

Shenanigans
07-11-2008, 11:31 PM
Amen.

Suff
07-12-2008, 01:27 AM
I spent a lot of time at my Grandfathers house as a kid. My family all lived within blocks of one another.

Trash, Househould trash was something foriegn to my Grandfather. We threw nothing out. Envelopes were opened gingerly so they could be resused, if not they were saved for writing notes. Anything purchased that came with packaging, the cardboard was saved and used as shims for rickety furniture or to keep out of plumb doors closed.

Containers were used to store things in the basement, glass jars stored pickled vegtables or nails, pins, or buttons. Boxes were never broken down, they were used in the yard when we weeded. We grew our own vegtables, mainly tomatoes, cucumbers and squash. All sorts of card board, sticks and string, tape, mulch, potatoe and cucumbers peels were used in the garden.


Trash? There was no such thing as trash. It would never enter my Grandfathers mind to throw anything away.



My Grandfather was in early 90's and I went by to see him. He was sitting quietly in his chair so I said "Grampy why don't you turn the radio on and listen to the Red Sox" and he replied in his thick Irish brogue, "Oh the electric company would love that now would'nt they?".


I pray I never know the poverty that ingrained these thoughts and habits into my pappys brain.

Patrick Gallagher. Worked two jobs until he was 75, worked full time until he was 85, died at 96. His favorite activities were mowing his lawn and talking about the weather.

Tuffmug
07-12-2008, 01:53 AM
Read Robert Prechter's book "Conquer the Crash" to learn how to prepare for the bad times coming fast to us all!

Overlay
07-12-2008, 08:32 AM
My Grandfather was in early 90's and I went by to see him. He was sitting quietly in his chair so I said "Grampy why don't you turn the radio on and listen to the Red Sox" and he replied in his thick Irish brogue, "Oh the electric company would love that now would'nt they?".


I can understand the effects that living through the Depression must have had on people's habits and thinking, but I assume your grandfather at least had the radio connected (if not turned on). My wife (who wasn't around in America of the 1930's, but who did come from one of the rural provinces of the Philippines) has gotten all of our family conditioned to disconnect any electrical device (televisions, microwaves, lamps, etc., etc.) when not in use because of the charges incurred just for having something plugged in.

wonatthewire1
07-12-2008, 01:59 PM
Read Robert Prechter's book "Conquer the Crash" to learn how to prepare for the bad times coming fast to us all!


Prechter will be right one of these days - he was a Perma-Bear during all of the '80's and '90's - following that particular insight would've emptied your wallet pretty fast.

Robert - it was only a matter of time!

;)

skate
07-12-2008, 05:09 PM
Dear Teach;


You'll find no more satisfaction, than when you take your Mother out of the Nurse Home.

Take care of her Yourself. Lots of good feelings, you dont see them now.:cool:

PaceAdvantage
07-13-2008, 10:35 PM
Read Robert Prechter's book "Conquer the Crash" to learn how to prepare for the bad times coming fast to us all!Here's the short version:


Buy Gold
Run down into your basement carrying said gold, find a cozy corner and cry yourself to sleep.

barn32
07-13-2008, 11:00 PM
Here's the short version:





Buy Gold
Run down into your basement carrying said gold, find a cozy corner and cry yourself to sleep.

If you guys want to read a great book about a professional trader who owned a lot of gold during the 87 crash, then try to pick up a copy of "Pit Bull (http://www.amazon.com/s/ref=nb_ss_gw?url=search-alias%3Daps&field-keywords=pit+bull&x=0&y=0)" by Marty Schwartz.


The chapter where he's "goin for the gold" is hilarious.

prospector
07-13-2008, 11:02 PM
buy a shovel and pick and dig your own gold...i do every summer...looking forward to winter in ariz this year, yep....digging for gold...great hobby, pays for itself..