This is NOT the second Great Depression, and no amount of made up figures and false information can change that
Alsty's recent post stating that the current terrible recession is much worse than the Great Depression was is long on false, misleading statements and short on facts. 9.09 MUCH WORSE than The Great Depression
Where on Earth does he get his historical information from? Do he just make it up? He certainly never cites his sources. Let's pick apart his post, piece by piece:
In The Great Depression...government was a very small percentage of GDP. Not only that, our government operated surpluses
Just two years into the downturn and we are seeing declines NEVER seen at the worst of The Great Depression such as new home sales down 80% and land values down over 80% in many areas.
Let's start by saying that this is taking data from the absolutely worst hit sections of the country and projecting it nationally, which is dead wrong. However, even if this outlandish statement was correct, such a drop would not be worse than the housing downturn that our nation faced during the Great Depression.
Hard numbers on exactly how far home prices fell nationwide aren't known. (Government records go back only to the 1950s, and even then they're a bit sketchy.) Yet the government has kept statistics on the number of new homes built since the 1920s. At its peak in 1925, the roaring economy—the same one that helped George Bailey put scores of poor families into new subdivisions in the movie It's a Wonderful Life—produced about 900,000 new homes a year. By 1933, around the time Old Man Potter tried to get his hands on Bailey's cash-strapped Building & Loan in Bedford Falls, that number had fallen to about 100,000 new homes, a 90 percent drop.
That's about twice the size of the percentage decline in home building seen so far in the current downturn. And although some economists still expect things to get worse, "I certainly don't think we're in for another Great Depression," says economist Edward Leamer, whose UCLA Anderson Forecast has been predicting a real-estate swoon for the past two years.
I'm swamped with work today so that's all of the time that I have for now, but perhaps if I have a few spare seconds later I will continue destroying his misleading post.
BTW, today is MOAP Armageddon day, 9/9/09. AAAAAAAAAAAHHHHHHHHHH.