Comments on: We are in depression http://www.creditwritedowns.com/2009/02/we-are-in-depression.html Finance, Economics and Markets Thu, 09 Feb 2012 21:54:06 +0000 hourly 1 By: The recession is over but the depression has just begun | The Big Picture http://www.creditwritedowns.com/2009/02/we-are-in-depression.html#comment-7587 The recession is over but the depression has just begun | The Big Picture Fri, 18 Dec 2009 20:49:51 +0000 http://www.creditwritedowns.com/?p=6113#comment-7587 [...] this year, I wrote a post “We are in depression”, which called the ongoing downturn a depression with a small ‘d.’ I was optimistic that [...] [...] this year, I wrote a post “We are in depression”, which called the ongoing downturn a depression with a small ‘d.’ I was optimistic that [...]

]]> By: killben http://www.creditwritedowns.com/2009/02/we-are-in-depression.html#comment-3960 killben Wed, 18 Feb 2009 11:45:12 +0000 http://www.creditwritedowns.com/?p=6113#comment-3960 "The reason I see the present cycle as a depression with a small ‘d’ is that policy makers across the globe are throwing everything at the problem they can think of. To my mind, this will likely but not necessarily eliminate worst-case outcomes" This would be true ONLY if the customers in the U.S. (and UK, East European countries) are not upto the gills in debt, thereby leaving room for demand creation .. In the present contact it is unlikely that demand will revive anytime soon ... whatever the government tries to throw has to be picked up by the customer, which is not happening ... see the way savings rate has gone up in the U.S. Also globalisation means drop in teh U.S. demand will lead to lower production, jobs losses, lower demand elsewhere creating a vicious cycle To my mind, globalisation and the customers being highly leveraged means cliff-diving demand leading to a depression with a 'D' “The reason I see the present cycle as a depression with a small ‘d’ is that policy makers across the globe are throwing everything at the problem they can think of. To my mind, this will likely but not necessarily eliminate worst-case outcomes”

This would be true ONLY if the customers in the U.S. (and UK, East European countries) are not upto the gills in debt, thereby leaving room for demand creation ..

In the present contact it is unlikely that demand will revive anytime soon … whatever the government tries to throw has to be picked up by the customer, which is not happening … see the way savings rate has gone up in the U.S.

Also globalisation means drop in teh U.S. demand will lead to lower production, jobs losses, lower demand elsewhere creating a vicious cycle

To my mind, globalisation and the customers being highly leveraged means cliff-diving demand leading to a depression with a ‘D’

]]> By: Edward Harrison http://www.creditwritedowns.com/2009/02/we-are-in-depression.html#comment-3948 Edward Harrison Tue, 17 Feb 2009 23:14:34 +0000 http://www.creditwritedowns.com/?p=6113#comment-3948 Mark, that's good! Mark,
that’s good!

]]> By: Mark Wadsworth http://www.creditwritedowns.com/2009/02/we-are-in-depression.html#comment-3946 Mark Wadsworth Tue, 17 Feb 2009 23:02:14 +0000 http://www.creditwritedowns.com/?p=6113#comment-3946 What's the difference between a deep recession and a depression? Click my name to find out! What’s the difference between a deep recession and a depression? Click my name to find out!

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