“The mortgage load of Californians was unusually heavy, and with deflation it became unbearable. Bank failures and the collapse of security values impoverished many retired people who had previously supplied buying power without competing for jobs.”

Where do you think this statement comes from? Maybe an article in the Orange County Business Journal, a recent post in the business section of The Orange County Register, or a comment made on the Inside OC with Rick Reiff broadcast?

No. This reprint of a statement made about the 1930s, when our economy was in a deep depression, can be found in a book written in 1970.*

Hope springs eternal that we will learn from past mistakes, but, as this statement shows, we missed it in a big way this time around.

So here is hoping that when we recover from this recession (which we will eventually), we will decide that we can do without the manic highs that are based on false illusions and will eventually lead to depressing lows.

Well, I can hope!

*Quote source: A Slice of Orange; the History of Costa Mesa

Theatrical poster courtesy Drew Stuzan via Wikipedia