What to do if you know a depression will hit in a couple years
 

We had a discussion in class today about how Americans are so dependent on credit, and are so overextended that it could throw USA into a depression. The prof explained the reason for the depression in the 20's was because of this.

So lets just say some how you are told a depression will hit in a couple years. It will be just like the 1920's. Assume its absolutely guaranteed, and nobody else or only a very few people know.

How do you prepare for it?

Do you go pick up some sort of skill job that would still be useful?

What do you do with all your current money? Do you try some risky stuff to get a fat stack so you're better prepared?

Will money be useful, or do you just start stashing away stuff that you could use to barter?

Do you move to a climate that isnt so damn cold in the winter when your power is cut off by the electric company?

Would a USA depression like the 1920's effect the rest of the world, so if it didnt you just move now? Would it weaken the US so much that some country would see the advantage and start attacking?

Just some thoughts I had i'm interested in what some of your thoughts are.


rJ

Re: What to do if you know a depression will hit in a couple years
 

Buy a gun, buy some land in montana, move to montana, offer Ray Zee a six pack.

Re: What to do if you know a depression will hit in a couple years
 

It would depend if inflation is expected to rocket, if not then I would be looking to have cash reserves to try and buy a load of property and cheap stocks when the property and stock market crashes. Although I am not sure the property market is as hot in the States as here.

The failure of the US market would impact more on the emerging countries like China who export a lot of good tothe states, it would have an effect on europe but not to as large an extent. I think the US economy is weak at the moment and it doesnt seem to be having a huge impact on the UK although our economy is slowing down.

We had many years of boom and bust over the last 20 years but we seem to currently have a great deal of stability although manufacturing has been struggling and the retail sector is now slowing as well.

Re: What to do if you know a depression will hit in a couple years
 

Convert all my money to a safe, stable currency and bet against the market.

Re: What to do if you know a depression will hit in a couple years
 

Convert cash to gold now, buy property after the crash.

Re: What to do if you know a depression will hit in a couple years
 

Stick it to the man.

Re: What to do if you know a depression will hit in a couple years
 

[ QUOTE ]
Buy a gun, buy some land in montana, move to montana, offer Ray Zee a six pack.

[/ QUOTE ]

The basic idea is good, but I'm not sure Montana is where I want to be w/o a relaible source of heating oil, etc.

Re: What to do if you know a depression will hit in a couple years
 

Gold is indeed the correct answer. It will always stabilize a devaluation of currency. I bought as much as I could afford durring the major economic boom in the late 90's. I bought quite low, then sold about 3 months after the correction that resulted from the Sept. 11 tragedy. If you have a huge cash supply, and the market crashes, so does the value of your cash. You will be unable to buy anything, as prices will rise and your money's value will not follow.

Re: What to do if you know a depression will hit in a couple years
 

Intresting website for those in the UK. Also very relevant for for those in Europe and USA.

Housepricecrash.co.uk

Re: What to do if you know a depression will hit in a couple years
 

What bailed the US out of the last depression? WWII?

I think the draft fires right up in the case of a depression and we go kick some butt in the middle east.