Simit Patel

John Hussman: Depression Fear Mongering 'Ridiculous'

No, the Depression talk comes largely from people who saw this whole thing coming a mile away. Just as the Fed's overly lax monetary policy created the Roaring '20s, and then its interventions and inflationary behavior exacerbated the problem instead of preventing the necessary credit contraction the market said was necessary, so too is this story the same: Greenspan's Fed created the tech bubble and the housing bubble, and now Bernanke is intervening to prevent the necessary contraction, thus making the problem worse.

History does indeed repeat itself.