World Economy Faces the ‘Great’ Depression of the 1930s or the Long’ Depression of the 1870s. By Shan Saeed
You know it’s grim when the prevailing debate among economists and historians is whether the world economy faces the “Great” depression of the 1930s or the “Long” depression of the 1870s.
Harvard professor and economic historian Niall Ferguson, a fan of the British government’s austerity drive and skeptic of further stimulus, reckons the world is facing a “slight depression” and favors comparison with the late 19th century rather than 1930s.
Long-term market bear Albert Edwards at Societe Generale has talked more apocalyptically for years of an economic “Ice Age” dominated by household deleveraging, low growth and deflation.
But now “depression” is very much back in the mainstream lexicon as the small economic bounce from the deep global recession of 2008/09 fades rapidly after little more than two years and Europe’s bank and sovereign debt crisis intensifies. The currency crisis will escalate in
Economist and doomsayer Nouriel Roubini now says there’s a “huge” risk of 1930s-style depression ….Jim
HSBC chief economist Stephen King, who wrote earlier this year of a “new economic permafrost”, warned last week that the systemic financial threat of a euro zone collapse and breakup risked another “Great Depression”.
As I have shared for the last 3-years, the global economy is in a depression, and – because the government has done all of the wrong things – Market players are stuck in it.
It Could Be WORSE Than the Great Depression
§ Nobel prize winning economist
Bad Government Policy Has Us Stuck
§ The government is doing everything else wrong.
This isn’t an issue of left versus right. It’s corruption, misinterpretation of facts, and bad policies which help the top 1% but are causing a depression for the vast majority of the people either in
Disclaimer: This is just a research piece and not an investment advice. All financial transactions carry a RISK.