Are we heading into a Third Depression?

[z31maniac]

http://www.nytimes.com/2010/06/28/op...28krugman.html

"And this third depression will be primarily a failure of policy. Around the world — most recently at last weekend’s deeply discouraging G-20 meeting — governments are obsessing about inflation when the real threat is deflation, preaching the need for belt-tightening when the real problem is inadequate spending."


I agree that deflation is a much more dangerous threat, we need only look to Japan's "lost decade" during the 90s.

Add in a "jobless recovery" and he may be more accurate than we'd like....

Thoughts?

[mrsleeve]

yes and I fear this one will make the great depression look like happy fun time, think Vimar. Either way no matter what it will be like the 30's and because the govt will try to social engineer our selves outta this it will drag on and on for who knows how long just like FDR manged to drag out the depression for 10 years when the rest of the world was back on its feet in only a couple of years

[der affe]

don't forget that the long term ARM's are comming due when we have a high unemployment still. if they don't extend the emergency UI again, then there is less $ going directly into the economy. we are far from out of the woods.

[Massive Lee]

Thoughts?

Many governments have over spent in the past two years in order to make money circulate. Now they are broke and in deep debt.

Wanna spend more?

BTW Stop buying from China. Create jobs in North America.

[nando]

europe is in trouble, but I think US policy is headed in the right direction, for now. So it may be the opposite, where the US and the rest of the world recovers, and the EU deflates.

oh yeah, want to know something really depressing? basically everything we've bought new for our son, except maybe 1 toy, was made in china. I've even looked for stuff that isn't made in china and haven't found anything yet..

[Sean5294]

to be honest i can't wait.

[nando]

to be honest i can't wait.

I don't think you know what you're really saying here.

[z31maniac]

to be honest i can't wait.

And just why would another Depression be a good thing?

[gwb72tii]

the pending depression/double dip recession is a result of government policies around the world going back to WWII
europe is flat out of other people's money to further their mostly socialistic economies. and the usa is not far behind.
plus the fed is out of bullets. the can't get any lower that 0% for fed funds, and money suppy has been way up too, and our economy still sucks
krugman's viewpoints are debateable.
what i think is going on is the federal government spendind is SO bad everyone is concerned about it and how its going to be paid for. so nobody is spending and thanks to government policies we no longer manufacture just about anything, so 70% of the economy that relies on consumer spending is going to suck for a while.
krugman wants to spend another trillion when the first trillion didn't do shit for jobs or growth. fucking brilliant.
krugman is a shining example of why living and operating in the real world is far more important than being educated and getting a nobel.

[Massive Lee]

... and thanks to government policies we no longer manufacture just about anything, so 70% of the economy that relies on consumer spending is going to suck for a while.

So, you blame it on the governement if Americans buy Chinese or US car manufacturers make crappy vehicles?
What are you guys going to do about that?

[Sean5294]

I don't think you know what you're really saying here.

You know what? I think I do. I lost my job, I'm going to loose my house and my car. I like many Americans spent our whole lives working hard to take care of our family. Now it is all lost because people and greedy companies/executives could not take responsibility for their dept. Our Government gave out billions of our dollars to help bail out these poorly run companies and thier CEO's while the rest of America has to eat a shit sandwich. I hope things get so fucking bad that there is a civil war which will force a change and the people who caused this will have to fend for themselves. There is only so much crap we the average American can take from these elitist assholes (politicians). Believe what you want but our government will never do anything to help out the average American, they never have. All I can say now is fuck it.

[Sean5294]

So, you blame it on the governement if Americans buy Chinese or US car manufacturers make crappy vehicles?
What are you guys going to do about that?

We are going to give the companies more money so they can continue to make more crappy cars.

[Farbin Kaiber]

It's called double dip. It's the second dip we are waiting for, and what is coming down the pike.

[joshh]

When your household cash gets tight on cash what do you do??........you economize!

Government needs to do it for real.

[Erik]

Stop having so many god damned babies... Ok, that's just a minor issue here, but I believe it's a very big issue. If you can't afford to feed yourself, don't make more people to feed... It's simple math actually.