Are We Heading For A Depression?

Yesterday, I came across a very interesting blog called MikeKane2008. It was started in January of last year, and ended in December.

The author, Mike Kane, is basically one of those who feels we are on the verge of a serious depression. Like James Sloman, he feels that the global derivative bubble reached around $1 quadrillion at its peak. This is $1,000 trillion - which means (according to Sloman) that the bailouts are "like trying to put out a fire with a teaspoon of water."

It's interesting because he also thinks like I do - that bailing out the banks is a waste of time and money. Something must be done about the debt that is at the bottom of this mess.

Mike's solution, however, is radical. He quotes from the Bible, Deuteronomy 15: 1-11

At the end of every seventh year, cancel all debts. This is the procedure: Everyone who has lent money to a neighbor writes it off. You must not press your neighbor or his brother for payment: All-Debts-Are-Canceled—God say so...

Mike thinks the only solution to prevent a chaotic collapse is for ALL debt in the world to be forgiven, to give the global economy a fresh start.

My solution was requiring as many mortgages in danger of failure to be refinanced into longer terms - as much as 50, 60, or even 100 years - to make payments affordable.

Chances are, most of these long term mortgages will end up being paid off sometime in the next 20 years anyway.

As far as depressions go, I'm still cautiously optimistic that we will avoid one, but I am not as confident as I was maybe a few weeks ago. For now, I just want to hunker down, hold on to my job, and stick with my Stock Trading Riches system, because it wins through defense and feeds off down markets.