I told you guys we were in a recession back in March, but now I fear we could move from a recession straight into a depression. Things could get really bad… Let’s examine shall we?

In economics, a depression is a sustained, long downturn in one or more economies. It is more severe than a recession, which is seen as a normal downturn in the business cycle. The mother of all modern depressions was of course the “Great Depression”:

The Great Depression was a worldwide economic downturn starting in most places in 1929 and ending at different times in the 1930s or early 1940s for different countries. It was the largest and most important economic depression in modern history, and is used in the 21st century as a benchmark in how far the world’s economy can fall. The Great Depression originated in the United States; historians most often use as a starting date the stock market crash on October 29, 1929, known as Black Tuesday. The end of the depression in the U.S. is associated with the onset of the war economy of World War II, beginning around 1939.

The depression had devastating effects in the developed and developing worlds. International trade was deeply affected, as were personal incomes, tax revenues, prices, and profits. Cities all around the world were hit hard, especially those dependent on heavy industry. Construction was virtually halted in many countries. Farming and rural areas suffered as crop prices fell by 40 to 60 percent. Facing plummeting demand with few alternate sources of jobs, areas dependent on primary sector industries such as farming, mining and logging suffered the most.

The majority of countries set up relief programs, and most underwent some sort of political upheaval, pushing them to the left or right. In some states, the desperate citizens turned toward nationalist demagogues – the most infamous being Adolf Hitler – setting the stage for World War II in 1939.

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Ok. So, a good executive can be worth a lot of money to a company. I don’t have anything against a nice pay package, all things considered. But it is literally criminal for an Executive to receive a huge payout when they deliver negative results for a company. In my opinion, Exec pay should be merit based. If the exec delivers outstanding shareholder value, a big paycheck should ensue.

So, how then about these execs? Just 72 hours before the company filed for bankrupcy, Lehman awarded the top 5 executives $100 million. Yep. You heard that right. They drove the company into the ground and got rich off of doing it.
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Wow! The New York Times hit a home run today with this editorial column from Warren Buffett. So, for all of you guys who are feeling scared and wondering what to do with the economy in the toilet right now, you might want to listen to one of the richest men ever to walk the planet.

Buy American. I Am.

By WARREN E. BUFFETT

THE financial world is a mess, both in the United States and abroad. Its problems, moreover, have been leaking into the general economy, and the leaks are now turning into a gusher. In the near term, unemployment will rise, business activity will falter and headlines will continue to be scary.

So … I’ve been buying American stocks. This is my personal account I’m talking about, in which I previously owned nothing but United States government bonds. (This description leaves aside my Berkshire Hathaway holdings, which are all committed to philanthropy.) If prices keep looking attractive, my non-Berkshire net worth will soon be 100 percent in United States equities.

Why?

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So, you need a Web site developed, you’re looking for a new logo, or you’ve got a business application you need created. OR, you would like to be developing Websites, logos and apps for other people! But you don’t have a clue how to go about matching yourself up with someone who can fulfill your needs?

Don’t worry, I hear this a lot. My recommendation is to create a simple description of the type of work you are looking for, and post it on one of the many freelance developer sites that have sprung up online. I’ve actually used a couple of these myself, and have been impressed with the quality of work that I’ve managed to get done.

So whether you’re looking to get hired or hire someone else, here are 8 sites you should definitely check out:

• Elance.com – One of the largest freelance sites around. Membership accounts range from FREE to $39.95/month for large businesses. Elance charges a service fee of between 6.75 % – 8.75 % for paid jobs.
• RentACoder.com – Claims to have over 200,000 registered members, and over 2,500 active jobs (as of the day I published this).
• GetACoder.com – Large list of jobs available with commissions comparable to the other services listed here.
• GetAFreelancer.com – Most projects seem to range from $500-$1,000, with the company charging a commission for paid jobs.
• Guru.com – Claims to be the largest freelance site out there. Guru offers FREE, as well as paid, memberships that range from $29.95 to $99.95 per quarter. Guru takes 5 % – 10 % commission.
• ScriptLance.com – ScriptLance is FREE but charges 5% commission.
• iFreelance – Membership levels vary between $4 – $7/month but that is all you pay. iFreelance doesn’t charge a commission.
• ProBlogger’s Job Board – pretty much nothing but jobs for writers or bloggers.

A lot of people keep asking me what I think about the current state of the financial markets. Well, I think they suck. Having said that, I have given people the same advice as I’ve taken myself lately – which is, hold what you’ve got.

I don’t really have time to go completely into all the various points I’ve been considering lately, but here are a few key resources that I believe will help to give you a good idea of what all is going on:

1. World’s central banks cut rates to rescue economy
2. Angel Investor Ron Conway Emails His Portfolio Companies Over Financial Meltdown
3. Worst stock market crash since 1937
4. Stock Market Plunge Spreads Worldwide
5. VIX Jumps to Record, Topping 56, on `Mad Rush’ to Sell Assets
6. Asian Markets Plunge as Fears of Global Recession Looms
7. Causes of Great Depression
8. Stock Market, History,Causes and Affects
9. Thoughts on the Global Financial Mess: Gimme Shelter (and some transparency, please)

Feel free to drop questions or comments below and I’ll answer them for a few days as I have the ability to check on them.
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Time magazine just put out an article about how a certain type of Pentecostal Evangelism likely put a large number of consumers more or less in harm’s way by preaching that “God will give you a house, if you first give to God (as in… make an offering to the church).”

The religious movement, spearheaded by Godatorium super-star Joel Osteen (who may also be the devil), is called Propserity Gospel – and teaches that, dammit, God wants you to be rich in this lifetime as well as the next!

And quite a few folks are apparently coming around to this idea…

In three of the Gospels, Jesus warns that each of his disciples may have to “deny himself” and even “take up his Cross.” In support of this alarming prediction, he forcefully contrasts the fleeting pleasures of today with the promise of eternity: “For what profit is it to a man,” he asks, “if he gains the whole world, and loses his own soul?” It is one of the New Testament’s hardest teachings, yet generations of churchgoers have understood that being Christian, on some level, means being ready to sacrifice–money, autonomy or even their lives.

But for a growing number of Christians like George Adams, the question is better restated, “Why not gain the whole world plus my soul?“

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I just wanted to remind everyone that this idiot predicted a 20,000 point Dow by the end of the year.

Have a nice day.

Damn! Why has everyone lost their freakin mind lately? Basically every where we turn the economic indicators are going absolutely insane! Let’s recap some of the horrible things that have been going on lately, shall we? Yes. We shall…

Before we get started, I would just like to send out a big “I told you so” to all the haters who didn’t believe it when I called in the recession on March 10.
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This is sickening. Thanks to Jimbeau for passing along this little piece of financial history. If you wonder why the economy is completely in the crapper right now, well here is a contributor to the problem. Nine years ago today the New York Times issued this report.

Let’s be clear, although the report gives some statistics about minorities, I’m not pointing this out as a racial issue. This is a credit worthiness issue. If you have the means to pay back a loan – you should be given one. If not, you should be denied. The reason this lending practice changed was pure and simple greed.

“…felt pressure from stock holders to maintain its phenomenal growth in profits.”

They got caught up in the pre-Internet bubble growth around them, and everyone started grabbing for cash. Pathetic. By the way, I’ve highlighted (in blue) some of the choice comments below. Enjoy.

September 30, 1999

Fannie Mae Eases Credit To Aid Mortgage Lending

By STEVEN A. HOLMES

In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.

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Ok, there has been a lot of bad financial news lately, and it can be a real downer and a non-productive waste of time to worry about it. Instead, I would like to focus on some organizations who are using their power for AWESOME and who demonstrate that the power to do good is stronger than the power to do bad. (Keeping in mind that not all charities are good.)

When we focus on what is most important we can make a real difference, so to get us started, here is a little video to put things in perspective. For any of you who have not yet seen it, it starts sad and then makes you truly grateful for what you have by demonstrating the power we really do have over the world around us.

Well, you better get ready. Gas was near an all time inflation adjusted high back in April, but as of right now we’re already paying more than we’ve ever paid for a gallon of gas. According to the Wall Street Journal:

The skyrocketing price of oil, now up more than 44% so far this year, is battering the airline and auto industries and causing consumers to cut back on driving and nonessential spending.

That jolt is reinvigorating worries that crude prices could ratchet still higher, putting a severe squeeze on many economies around the world and deepening the growing tension between the world’s big oil exporters and consuming countries.

This chart illustrates the price of Gas in the US in both real dollars and inflation adjusted dollars. Either way we’re at the top of the scale right now.
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Thanks to Jason over at Smith Barney for sending me over the link to this looney old Barrons stock strategist’s prediction that the Dow Jones is going to hit 18,000-20,000 within the next 12 months.

I’m sure glad I know this, because now I can go ahead and dump any of those crap “conservative” investments I’ve been holding on to and go “all in” on the stock market! I mean heck, if it’s going for nearly a 100% ride in the next year, that’s the place to be!
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