Why do I keep hearing that we “Just diverted” a Second Great Depression?

11 comments

1. 

   Bill G on July 3, 2009 at 10:25 pm

   We haven’t averted anything of the kind.
   This minor upswing is just temporary and the worst is yet to come.
   We still have a major problem looming in commercial real estate and there is another huge wave of home foreclosures on the horizon.

   And this is before even factoring in the damage which the coming massive tax increases such as "cap and trade" is going to cause. They are currently working on internet sales taxes which will be especially hard on my business.

   One thing though… Don’t put too much faith in government accounting statistics like unemployment and inflation. Their definitions have changed several times, to make politicians look good, making it very hard to compare across eras. Inflation, especially, bears absolutely no similarity to the original definition thanks to changes made during the Clinton administration.

2. 

   Senor Magoo on July 3, 2009 at 10:25 pm

   THE OBAMA DEPRESSION

   coming to your neighborhood this summer.

3. 

   Seldon Surak on July 3, 2009 at 10:25 pm

   you conveniently left out the 2 most important factors
   real estate and derivatives
   THEY ARE WHAT NEARLY CAUSED TOTAL FINANCIAL COLLAPSE!

   nice try though

4. 

   Invisible on July 3, 2009 at 10:25 pm

   Thats Seldon’s favorite line.

5. 

   dinodino on July 3, 2009 at 10:25 pm

   I doubt you heard that. Maybe "averted" , though I haven’t seen that either. Who’s claiming that?

   PS No one really knows what would have happened if we allowed a general bank collapse and substantial corporate bankruptcy which would have occurred if nothing was done. But I think it would have looked a lot like a depression. You do realize that you are quoting figures for 2009 after the 2008 bailout, TARP, and other bailouts. Siting what happened after those actions cannot disapprove claims that we averted a depression.

6. 

   slc_corrado on July 3, 2009 at 10:25 pm

   They tried very hard to show a depression during Bush’s last months in office. Unfortunately in October the economy showed less than a 1% growth. The decline in the economy didn’t happen until after that.

7. 

   Holbrook Lives! on July 3, 2009 at 10:25 pm

   Because Obama told them we did…when we hit 25% (and you have to remember the 25% was of White Males…some estimates have it as high at 60% if you add the other demographics…) Unemployment then we are in the Great Depression Era…it is just hype to make it look like Obama has actually done something…

   SELDON: darn dude you are not all there are you? Who caused the Housing problem…oh yea Barney Franks and comapny…good try though…hey maybe you should take my class on American History…free of charge…

8. 

   ME on July 3, 2009 at 10:25 pm

   Politicians, with the help of the media, exaggerated the economic slump so the general population would support anything Congress did under the name of "fixing the economy". Congress proceeded to authorize the spending of trillions of dollars. The economy is now moving upward and people believe that these spending packages "fixed everything". The problem with this thinking is that the vast majority of the spending authorized by Congress has not happened and therefore has no effect on the current economy.

9. 

   angry american on July 3, 2009 at 10:25 pm

   Queen B. Frank is at the root of the problem…and we don’t need his type of fixes…but someone needs to have him fixed.

10. 

    skipfab74 on July 3, 2009 at 10:25 pm

    Because young libs have been brought up to not have to deal with a little adversity. (you know, 8th place ribbons and all) Therefore, whenever times get tough, they gnash their teeth and wring their hands and proclaim the sky is falling. Fortunately, those of us with level heads realize that while a recession isn’t ideal, this is nowhere near a depression.

    BTW, Seldon, if you REALLY believe that the whole housing market crisis brought us that close, then how can you be such an apologist for the Dems when Frank, Dodd and Mr. President let it happen?

11. 

    KnowlEDGE is Power on July 3, 2009 at 10:25 pm

    I don’t believe that we really are in either. The only reason we are doing bad is because we are saying we are doing bad. Then people get scared and lay off their employees to save money. Then those people that don’t have jobs stop paying other companies. Then those companies lose revenue and have to lay their employees off. That cycle continues a little bit. When it stops companies raise rates to make up for lost revenue. Eventually people without jobs decided they need to work. The jobs that they get no one ever wanted so those companies start doing well and bla bla bla we start building back up.

    People there are jobs out there. You just don’t want them. Y’all are lazy.

    Why is it that the entertainment industries are still at the top of revenue charts? People need to prioritize.

    I am doing just fine in this "recession" because I choose to do well.

    Just throwing that out there for you..