a few news headlines featuring the Great Depression
Oh no, all those depressing news headlines everywhere featuring the word Depression!
Here are some typical news headlines you could read in the media today. These are real quotes, they were compiled by Dennis Gartman (taken from Jeffrey Saut from Raymond James) http://www.raymondjames.com/inv_strat.htm
“There is no question that this is the worst economic time since the Great Depression” ... “Sluggish economic growth this year will cap the worst three-year period centered on a recession since the Great Depression” ... “Forecasts for a weak recovery in 1992 suggest the period since 1990 will be the worst for the economy since the Great Depression” ... “The banking industry has plunged to its lowest point since the Great Depression” ... “This is the worst retail sale period on record since the Great Depression” ... “This recession is hitting white-collar workers more heavily than any since the great Depression of the 1930s.”
"OK, so what!?" you may say. You know already that the Great Depression 2 is just ahead.
The problem is: these quotes were taken from newspapers in 1990-1991, the last recession, accompanied by a housing and banking bust.
Still, the stock market started to rally soon (and even quadrupled until 2000), even if we first had the so called jobless recovery.
Today, with all the money the Fed has thrown into the system and the low interest rates (real interest rates are negative) and the government programs, I think calls for a Great Depression are premature. Remember, back then the Fed raised interest rates and let everything happen, laisser faire. And so did the government, nothing. Exactly what the Ron Paul fans today also want.
But I'm glad to know that today governments and central banks worldwide try to act in a concerted effort. There is no need for hard times since they can be avoided.