In previous posts I have spoken of the comparisons between our current period of economic weakness and that of The Great Depression. Those posts were written on June 22 and June 15.
I would like to reiterate my view, seen in the above links, that although our current period of economic weakness does have similarities to that of The Great Depression, there are notable differences as well. To believe that both situations are very similar, and by acting accordingly, imperils our economic situation.
The reason I feel as if I need to reiterate these views is twofold. First, people in general seem fixated on the comparison. Second, two of perhaps the most influential economists of today (Paul Krugman and Christina Romer) recently had articles, found in the below links, in which they discuss our current situation in context of The Great Depression:
"That '30's Show" by Paul Krugman
http://www.nytimes.com/2009/07/03/opinion/03krugman.html?_r=1
"The Lessons of 1937" by Christina Romer
http://www.economist.com/businessfinance/displaystory.cfm?story_id=13856176
SPX at 879.34 as this post is written
Copyright 2009 by Ted Kavadas
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