Friday, July 25, 2008

The Great Depression Part Deux

Bread line during The Great Depression. Isn't it ironic with the poster behind those in line?

Are we on the verge of another great depression? The great depression started in October 1928 which begins with dramatic collapse of US Stock exchange triggered the worst economic downturn the world have ever seen. Read about it here.

Current situation is not much different. Newspapers reported stock exchange in US, Britsh, German and French closed sharply lower than expected yesterday. Read about it here. Coupled with rising oil price which effecting inflation rate worldwide, i think the economy is on the verge of collapsing. The question is what can the government do? Can we survive if world economy collapse?

From Wikipedia "The depression had devastating effects both in the industrialized countries and in those which exported raw materials. International trade declined sharply, as did personal incomes, tax revenues, prices, and profits."

Malaysia as one of the biggest producer and exporter of electronic goods will be directly effected by world economy. Hope that the government, be it BN or PR government have a plan to counter this effect.

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