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To: Flavius
I think we'll avoid a depression, but we will have conditions akin to the 1980-1982 deep recession for at least 3-4 months.

Even Obama's economic team realized three things effectively caused the Great Depression:

1) Deliberately shrinking the money supply.
2) Passing the Smoot-Hawley Tariff, which killed off world trade.
3) Raising the top tax rate to a ridiculous 63% in 1933. Even Obama's economic team have not suggested raising the top marginal tax rate beyond 39% for lots of obvious reasons!

4 posted on 01/04/2009 5:12:50 PM PST by RayChuang88
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To: RayChuang88
Even Obama's economic team realized three things effectively caused the Great Depression: 1) Deliberately shrinking the money supply.

Wouldn't doing the converse (printing trillions of dollars) create a hyperinflationary scenario?
14 posted on 01/04/2009 6:56:33 PM PST by CottonBall
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