Is the current economic situation worse than the Great Depression?

I wish him well & congratulations, but Barrack Obama is a politician. He will exaggerate from time to time to make a point or excite his crowd.

As of right now, it isn't even as bad as the recession of the early 1980's. At that time, when Reagan entered office, inflation, unemployment, and interest rates were all in double digits. Interest rates actually peaked around 21% - what kind of housing crisis do you think THAT caused?

That being said, we're not out of this yet. The government and both political parties have taken extraordinary measures to stem the bloodshed in the markets, but it's never been tried before. Hopefully, we'll know in a few months if it has been successful or not. If not, we'll be making this comparison again.

about 5 years ago, I started to fall into a really depressive episode. At first I thought it was only because I had a bad break from a relationship but the feelings wouldn't go away even after I got a new girlfriend. It was wrecking my life until a point where it was seriously affecting my work and personal life.

She was very worried but at the same time couldn't understand why I was still sad and thought that I still couldn't let go of my previous relationship. Being the wonderful person that she is, she put aside her feelings and suggested I go for psychiatric evaluation. Many months later and even more anti-depressants, I was not coming close to being better at all.

After doing some research online, I found out the real cause as you described it really makes a lot of sense and purchased this program. The results were simply astonishing. I read this book over three times and put all words in action. Using this method, I've kept my depression at bay ever since. Up to date I'm still living happily with my girlfriend.

Depression Free Method?

The 1930 Great Depression will not be called The Great Depression anymore, this one will be even greater.

This is from Dr Doom , Nouriel Roubini`s blog.

November 4 th 2008 - New York

"For the last few years the global economy has been running on two engines, the U.S. on the consumption side and China on the production side, both lifting the entire global economy. The U.S. has been the consumer of first and last resort spending more than its income and running large current account deficits while China (and other emerging market economies) has been the producer of first and last resort, spending less than its income and running ever larger current account surpluses.

For the last few months the first engine of global growth has effectively shut down as the latest batch of macro news from the U.S. are worse than awful: collapsing consumption and consumer confidence, plunging housing, collapsing auto sales, plunging durable goods spending (while supply side indicators such as production, ISM and employment are also free falling). The U.S. is entering its worst consumer recession in decades both supply and demand data look worse than in the severe recessions of 1974-75 and 1980-82. And in due time this tsunami of awful macro news, together with ugly downside surprises to earnings will take another toll on equity valuations that are now temporarily lifted by another bear market sucker’s rally.

More worrisome there are now increasing signs that the other main engine of the global economy – China - is also stalling. Let us consider now in detail the evidence that China may be on its way to a hard landing...

The financial crisis is worse because the economy is more global and more dependent on financial services . This does not mean the the economy is worse, or will even get as bad because this time the government and the fed is acting to do something about it. It looks like it is working, but we will not know for sure for a couple of months.

It is possible it is worse for the USA than the Great Depression was for the US. The socialism that the then President instituted to save society was because of what individual families, churches, small groups did not do, or could not do, for those within it. It's a great thing that an African-American is so honored now. But that does not mean he or anyone will be able to save the US.

The jury is still out on the economic reprocussions that will reverberate throughout the world as a result of the central banks lent (with interest I might add) monies. It is a 'solution' to a recurring economical crisis that has never been tested to this scale.

Whether or not we will see depression as in the 20's remains to be seen but bear in mind that we are only just starting to go into recession, the worst is yet to come.

From what I learned from economics class, it is not.

During the Great Depression there was what's called "Classic Economics". That was when there was not Federal Reserve or Government intervention.

Today we have unemployment compensation, government help (welfare, food stamps, etc.), and the Federal Reserve System.

But I hope it does get better soon, real soon!!

Charita

So far this contraction doesn't even measure up to the one in the early 80s, let alone the 30s. So far.

That's his political speech to be the President elect.