Heading Towards Depression?

by Sal on July 24, 2009

in Politics

The talk on Wall Street lately is that we are heading towards a slow economic recovery.  Many indicators are showing signs of improvement, although most agree that the recovery will be long and difficult.  Yet, some analysis believe that the signs are being read incorrectly, and that we are actually heading towards an economic depression. One analyst group in particular, Sprott Asset Management, looks at a wide cross section of economic indicators and concludes that it will get worse, far worse, before it gets better.

America is in need of real leadership on the economy right now, and instead we have a far less capable version of FDR.  It was FDR’s policies that kept the nation in depression for 10+ years, and Obama’s will likely do the same for as long as they are allowed to continue.  The depression won’t look like the Great Depression (bread lines, abject poverty, etc.) but rather more like Japan’s lost decade.  In any event, if Sprott is right, we are in for a long haul.

{ 1 comment… read it below or add one }

Ryan July 27, 2009 at 10:28 am

What stymied recovery in the Great Depression was FDR’s insistance that ideology take precedence over common sense economics. Economics is a math and a science which has very little room for ideology. If this downturn slips into a depression, it will once again be the fault of ideology over objective, time-tested ways to fix things. It will once again be a Democrat putting his hidebound ideology ahead of a nation in need — a need that could be greatly aided simply by government getting out of the way rather than prohibiting growth in the name of “helping” the forgotten man.


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