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i see this as a cycle that we started around 1980. that's when we started all these policies designed to increase public debt, mortgage debt, student loan debt, credit card debt, et cetera.
I wasn't aware that it took five years after the crash in 1929 to be seen as a financial disaster of mega-proportions. I'm pretty sure politicians weren't finding support for claiming... "the fundamentals of American economy are strong" even couple of years down the road.
But in reality, I see this current debacle only an effect of the economic health of the nation since the recession of 2001. It simply never recovered.
Oh yes they were. Plenty more. It was confidence building I'm sure.
And the quick depression that happened years before was over before you know it. They were going on past history with their prediction IMHO.
I think I was off though..4 years, not 5 sorry.
"All safe deposit boxes in banks or financial institutions have been sealed... and may only be opened in the presence of an agent of the I.R.S."
- President F.D. Roosevelt, 1933 (June 1933)
The only difference between a recession and a depression is the severity and the duration. If the GDP drops by 10% or more and it lasts for more than 3 or 4 consecutive years, then it is a depression. If the GDP drop is less severe and lasts less time, then it is a recession. Otherwise, there is no difference between the two.
These are arbitrary and subjective values attributed to a "recession" in 1975 by the New York Times in order to distinguish it from a "depression." The reality is that both mean the same thing and can be used interchangeably, but most have been indoctrinated to believe that a depression is more severe than a recession.
The current recession is not nearly as severe or as long lasting as the 1974-1984 recession.
i cant call this a depression. people still line up for the newest i phone. not bread lines. times are tough, i wont deny it. times are tough for my family, but this isnt a depression yet. maybe if it keeps going down hill, and if people dont adjust their lifestyle to meet their needs, it will be a depression some day. ok gotta go, my bank account is low. i have to go get a new credit card.......
I wasn't aware that it took five years after the crash in 1929 to be seen as a financial disaster of mega-proportions. I'm pretty sure politicians weren't finding support for claiming... "the fundamentals of American economy are strong" even couple of years down the road.
But in reality, I see this current debacle only an effect of the economic health of the nation since the recession of 2001. It simply never recovered.
Yes, remember it was a "jobless recovery".
We now find out that debt a/k/a "credit" was made loose and available so many went way too far into debt to live. Our problems were brewing way before 2007. And if you look..the debt is just going through the system hitting each area as they no longer can borrow.
Well... I just wonder how a sizable segment of the population will react to being told, more or less, "Hey - we don't need you anymore to run the country's economy. You're dead weight. You bring nothing to the table and we've got nothing for you, except some patchy welfare programs."
I can't imagine that this will go over very well, especially when it gets applied to people who used to be productive members of the workforce, often for decades on end.
The only difference between a recession and a depression is the severity and the duration. If the GDP drops by 10% or more and it lasts for more than 3 or 4 consecutive years, then it is a depression. If the GDP drop is less severe and lasts less time, then it is a recession. Otherwise, there is no difference between the two.
These are arbitrary and subjective values attributed to a "recession" in 1975 by the New York Times in order to distinguish it from a "depression." The reality is that both mean the same thing and can be used interchangeably, but most have been indoctrinated to believe that a depression is more severe than a recession.
The current recession is not nearly as severe or as long lasting as the 1974-1984 recession.
Does government spending right before GDP numbers count ?
Cash for clunkers, big tax credits for homes, appliances, etc.
All right before GDP reporting.
Oh yes they were. Plenty more. It was confidence building I'm sure.
And the quick depression that happened years before was over before you know it. They were going on past history with their prediction IMHO.
I think I was off though..4 years, not 5 sorry.
"All safe deposit boxes in banks or financial institutions have been sealed... and may only be opened in the presence of an agent of the I.R.S."
- President F.D. Roosevelt, 1933 (June 1933)
And in fact, the great depression did end in 1933. But, Andrew Mellon wouldn't be someone I would consider a politician. His premise does sound a lot like McCain in late 2008. And as I said earlier, I doubt he had supporters then. Or, may be he did. I saw plenty of support for McCain's idea of US economy at the time, right here at C-D.
Does government spending right before GDP numbers count ?
Cash for clunkers, big tax credits for homes, appliances, etc.
All right before GDP reporting.
And why shouldn't it? (If that is the premise of your argument)
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