Looking for the silver lining: make sense?
A feature article in today's Wall Street Journal shows us how wrong people were after the crash of 1929. By 1930, Hoover said the worst had passed. He wasn't alone. Most people had no idea what was developing. They would find out over the next couple of years.
Naturally, the question comes up: are we in the same spot? Are we kidding ourselves when we talk about the "turnaround" coming by next year? The fact is, we don't know.
The numbers, like GDP, don't say much more than that we're in a recession - a downturn in the economy that should end soon. All the media commentary that uses GDP and other numbers to spread gloom are doing just that: spreading gloom. The numbers prove nothing - yet.
But since we don't really know, it would be foolish to say we're absolutely not going into (or already in) a Depression.
One thing we do know: the poor economic numbers are pretty consistent around the world, even in China (although arguably less so there).
To make matters worse, the stock market's going into a steady sink. And that sinking, if it continues, will unnerve people even more.
Naturally, the question comes up: are we in the same spot? Are we kidding ourselves when we talk about the "turnaround" coming by next year? The fact is, we don't know.
The numbers, like GDP, don't say much more than that we're in a recession - a downturn in the economy that should end soon. All the media commentary that uses GDP and other numbers to spread gloom are doing just that: spreading gloom. The numbers prove nothing - yet.
But since we don't really know, it would be foolish to say we're absolutely not going into (or already in) a Depression.
One thing we do know: the poor economic numbers are pretty consistent around the world, even in China (although arguably less so there).
To make matters worse, the stock market's going into a steady sink. And that sinking, if it continues, will unnerve people even more.
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