Steven Hansen

Let's Clarify "The Worst Economy Since...." Debate

i have not heard one reputable analyst or economist predict great depression type unemployment. why? - because america has completely shifted from an agricultural society to an industrial society to a service society,

in the 1930's people could pick up odd jobs (this did not count as employed), in 2008 you pick up part-time employment which is counted as employed). it is like comparing an apple to an orange.

then why do people keep saying "worst crisis since......". because it is bad, and may be a bad or worst than the 1930's. but nobody knows how bad it will be. currently all leading indicators are negative and continuing to fall. there really is no positive economic fundamentals except the price of commodities. the economy is deflating - an economists nightmare. credit markets remain frozen despite massive government intervention. the consumer sector may have had $20 trillion ripped from its worth (growing daily). we have a global recession.

and the only crisis with all these elements was in the 1930's. so that, my friends is why this is probably the worst economic crisis in 100 years. we cannot define it in foresight. if you choose to wait unit the government issued unemployment numbers reach double digits to start preparing yourself for the future - too bad.

you cannot put a positive spin on turds in a punch bowl.