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    Money meltdown

    3 Ways 2008 Isn't 1929

    By Ben Popken, 4:30 PM on Thu Oct 9 2008, 18,570 views

    With the Dow currently below 8600, stocks are continuing their downward spiral this week, the but the WSJ tells us 3 ways why it's totally different from 1929:

    • We have the FDIC. Depositors aren't going to lose a dime. Can't say the same for the shoeboxers, though.
    • The Fed is cutting interest rates now, not years down the road.
    • The bad loans were made against tangible assets, houses, instead of the more intangible asset of stocks. Equity can dissipate in keystroke, but you can't just vaporize a house.
    Have the essential rules of the economy changed? No. Boom and bust, that's how it goes. Sit tight, little chickies, and bide your time until we can jump on the next hot speculative trend: moonfarming!

    As Dire as the Times May Seem, History Isn't About to Repeat Itself [WSJ]

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