The Great Depression

  • Benjamin Roth: The Great Depression: A Diary

    Benjamin Roth: The Great Depression: A Diary
    It's all here, times change people don't -the endless govt programs that fail to stimulate the private sector -the ups and downs of the economy, the veterans pension stimulates just as the housing credit did, until of course the money runs out -Roth is a attorney in Youngstown Ohio who kept a diary regarding the economy from 1930 until WW II breaks out, he is objective, candid, and forthright which is more than we get from Washington DC now or then highly recommended

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October 09, 2011

Comments

Valentin Tristan Jr.

The economists are in denial!!!!
As one can see in this article witten by Bernard Condon, AP Business Writer, On Sunday October 9, 2011, 12:36 pm EDT at the yahoo web page titled
How bad can it get if the US falls into recession?
http://finance.yahoo.com/news/How-bad-can-it-get-if-the-US-apf-2957999844.html?x=0&sec=topStories&pos=2&asset=&ccode=

"To be sure, most Wall Street analysts and economists think one isn't even likely now. Jim Paulsen, chief investment strategist at Wells Capital Management, notes that recessions are typically preceded by what he calls "excesses" that need to be purged from the economy. He doesn't think that's true today.

"Have banks been aggressively overextending loans? Has anyone been borrowing too much lately? Are companies overstaffed?" Paulsen writes in a recent report. "It's hard to see why the U.S. would experience a recession when almost nothing requires a correction.""

Nothing requires a correction? Bah humbug!!

Most people I know are deleveraging, that is to say they are paying down debt because they are afraid of losing their job. Until foreclosures stop and consumers do not have a mountain of debt hanging over their head (credit cards) and especially, the banks need to clean up all of their bad debt in their books and have a clean balance sheet will the economy start healing. It is not that we have created new excesses from the last recession; it is that we have not clean up the old excesses from the past that will make us go back to a recession.

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