Topic: 1929

Treasury Secretary Tim Geithner's proposal to eliminate the debt ceiling is discussed as a dangerous policy that would allow for unlimited money printing. The hosts argue that the U.S. is heading toward a collapse similar to 1929, but suggest that bankruptcy should be viewed as a form of "jubilee" that allows for a clean slate. They criticize the 2008 bank bailouts for preventing a natural market correction.

The current economic downturn is compared to historical crashes in 1929 and 1890. One host suggests that the U.S. is entering a 20-year down cycle that has returned real estate and asset prices to 1990 levels. They argue that the lack of a meaningful recovery since the 2001 dot-com bubble indicates a fundamental shift in the global economy.

A comparison is drawn between current economic conditions and the 1929 market crash, suggesting the Dow could see a massive "dipsy-do" swing. Predictions include the Dow potentially hitting 25,000 or 30,000 before a catastrophic drop, leading to a full-scale depression by 2013.