Is the Economy Headed for a Depression?

University of Maryland - Robert H. Smith School of Business ^ | December 05, 2008 | Professor Peter Morici

[unixfox]

1-20-2009

Depression declared over! Economy soars!

[JTHomes]

It’s shaping up to be a long severe recession. The more the government misallocates capital and throws new and greater debt after old and bad, the more likely we will face depression.

[PBRSTREETGANG]

It’s certainly possible.

Putting a Marxist know-nothing into the presidency certainly won’t help things.

[RSmithOpt]

I think we are there now and gaining momentum as $40 trillion of global derivatives bought with borrowed money evaporates.

[sickoflibs]

Anybody know of an online economist article that explains why endless massive government borrowing will help with this, beyond political. Can all this borrowed and printed cash really jumpstart anything? I know MSM says we have to do it or else.

[PeterPrinciple]

All this makes me think we should all study the Wealth of Nations again (maybe the first time for most)

[kauaiboy]

more whining by academics

AMERICA IS BY FAR THE STRONGEST AND GREATEST NATION ON EARTH

The only issues going on now is we are correcting the FRAUD THE HAS BEEN PERPATRATED ON US

FRAUD in the banking sector
FRAUD in the housing sector
FRAUD in the Oil prices
FRAUD in government’

and furthermore the UNIONS WHO ARE RUINING MY STATE (Ca) and the US Automakers and OUR SCHOOLS MUST BE BROKEN

WE NEED TO CLEAN HOUSE AND GET BACK TO OUR ROOTS

HARD WORK
THRIFT
INDEPENDENCE
RESPONSIBILITY

THIS NANNY STATE BULLS*** MUST GO AS WELL

GOOD LUCK SEEING THIS HAPPEN WITH THE GUVMINT WE HAVE

/ RANT

[Eye of Unk]

President Bush earlier stated that America was in a recession.

[Dallas59]

Gold Prices

[RobRoy]

I believe “recession” is a technical term, based on specific statistics whereas “depression” is a sujective term.

Technical: She’s ugly
Subjective: She’s butt-ugly.

[stevem]

I believe a depression is a recession the government fixed.

[DiogenesLaertius]

Good report. Keep up your chin guys. Conservatives who live by their principles will still prosper in this economy (just look at how red states are doing versus blue states).

[unixfox]

One way to help things would be to completely abolish the current tax system and the IRS.

Give us a flat tax or fair tax. LOTS OF PROBLEMS SOLVED!

[An Old Man]

" Can all this borrowed and printed cash really jumpstart anything? I know MSM says we have to do it or else."

Sure that's the way to fix the problem! As this diabolical scam unfolds, try to keep in mind who started it. Then pay particular attention to who is supporting more of the same to cure what they caused.

[Star Traveler]

It’s a depression that’s coming...

[gogov]

For some people yes, for others no.

[yadent]

How right you are!! Check out ‘market-ticker.denninger.net’. It’s going to be bad, very bad if the market is not allowed to correct itself.

[buckalfa]

IMO, the US is headed for an extended somewhat deep recession that will last five plus years. A depression is possible if some external event occurs such as a major terrorist attack on US soil. Of course if you are worried about losing your job, it is a recession. If you have lost your job it is a depression. Semantics you know!

[econjack]

One of the best things Obama could do is let Rangel use his get-out-of-jail-free card and start cutting both corporate and personal income taxes. The fastest growing economy on the planet right now is Ireland. Oddly, it also has the lowest corporate tax rate. How many European companies would set up offices here if we had a 10% corporate tax rate? Does Obama really think that threatening the rich (who create jobs in the first place) is going to help our economic system? Did he miss the fact that the largest single day swing in the stock market happened right after he was elected? Who does he think such market swings reflects, the poor? Hell no, it shows what the people who create jobs in this country think things are going to be like once he takes office.

Rangel and the other bozos in Washington don't get it. Corporations don't pay taxes, the people buying their products pay taxes. Stimulus checks like we saw last summer are a joke, because they do nothing to alter the demand for durable goods, like home and cars. The big ticket items are unaffected by such voting-getting schemes. Permanent tax cuts are needed to induce consumers to alter long run consumption plans. Make a permanent tax cut and suddenly that new home, car, or college education becomes possible. Higher take home pay means it's possible to fund a little more debt for cars, homes, education, etc.

The best thing Obama could do is cut taxes permanently for all income levels, especially the rich since the top 10% pay 66% of the tax burden as it is. The cut corporate tax rates. After that, Mr. Obama, just stand back and watch how the system fixes itself.