Rhyme and Reason

I been laid off from work my rent is due
My kids all need brand new shoes
So I went to the bank to see what they could do
They said son looks like bad luck got a hold on you
--Simply Red

It's hard not to draw parallels between 1932 and today. A massive credit bust that followed a 'crackup boom.' Prices of nearly all risky asset classes cut in half (or more) from their highs. Unemployment ripping higher. Lack of cash. Bankruptcies and defaults. An unpopular outgoing Republican president who initiated huge bailout programs to try to stem the tide. An incoming Democratic president hailed as 'the one' to lead us out of the muck with the promise of stepping up his predecessor's stimulus to new heights.

With a New New Deal pending, folks would be well advised to brush up on economics and politics during the Great Depression.

Those that do will hear history's rhyme. And perhaps heed history's warning to position away from the pain that almost certainly awaits.

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