What are the comparisons of this recession with the Great Depression?
This article is for May 16th.
Monday, March 9, 2009
Worst Since The Great Depression
What are the comparisons of this recession with the Great Depression?
This article is for May 16th.
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6 comments:
Not surprising as most of the world is in or entering tough economic times. We only need look out our own doors to see the effects of our recession and on top of that many people are unaware of economic instability abroad. Europe is suffering in many ways similar to America and the EU has looked at similar "bailouts" just like America. They also are looking at troubles in their natural gas supplies and pipeline construction with that whole Russia issue back in January. At the same time as economic recession in the major western powers the Middle East and OPEC are suffering the lowest oil prices in years and taking a huge hit to their economies which are largely based on oil.
The World economy shrinking is an understatement. It's time for the world to take an updated look at international cooperation and ensuring that our intertwined economies are supporting each other. It's about time if you ask me; we've been lucky for it to take this long.
Honestly, it was just a matter of time, but the severity and speed with which this ecomonic juggernaut hit is part of the problem. We were sucker-punched with a situation which we can scarely imagine how to handle. Another part of the problem is that everyone is absolutely petrified to spend money in an economy that is failing. Warren Buffet himself said just recently "the economy has fallen off a cliff", that's pretty telling coming from an investor of his magnitude. Even though people are petrified to spend money they can't start to spend all at once because the amount of money in circulation is a lot higher than in previous years and that would create mass inflation, consequently driving up the price of milk, bread, etc.
It's hard for us just focus on the American economy because of our global economic structure, but investing in up-and-coming economies is an interesting prospect and it's refreshing to see new ideas rather than the insipid cynicism we see at the current.
"juggernaut" "Sucker punched" lol jacob your so liberal but its cool because i agree with you. But what seems to go unsaid in this global economy conversation is how people think that a stimulus bill will fix it all. These people are nuts because of the fact we have a global economy. It will take many hard years and coordination between nations to fix it,
Almost every article about any aspect of our economy is using the comparison between the present and the Great Depression. Now, I'm not saying that this particular situation will inevitably escalate into a disaster scenario, but history repeats itself. Eternal, infallible prosperity just doesn't happen. We need to do all we can to fix the problem, but at the same time have a backup plan for the worst imaginable.
Some effects of this recession are similar to the Great Depression but obviously, the statistics were ten times worse back then. But we do have to watch ourselves because history does repeat itself. And God knows we don't want to end up with the Great Depression the sequel.
Stocks were going down now, but not as much as they were then. This isn't nearly as bad as the Great Depression, but we sure are on our way there.
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