Yet another parallel

Today marks another day for The Great Depression Parallels. First we looked at the huge increase in borrowing/credit/debt/installment accounts. However one wants to describe it is incurring debt and reducing savings. The second thing we looked at the moratorium on foreclosures. This was done during the Great Depression - is already happening now on a small basis and with proposals to do it nationally.

Todays parallel involves the government bailing out banks. The government through JP Morgan Chase bailed out Bear Sterns today. From Mish's Global -

"The notion that stocks pop because the Feds bail out a major investment bank - the first such action since the Great Depression - is the only reaction that defies credibility more so than the CPI numbers."

The first time since the Great Depression - and surely not the last.