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The Great Depression vs. Today's Economic Crisis

Mr. Patel's summary of the similarities and differences between the Great Depression of the '30s and today's global financial crisis is excellent. However, a few other comparisons can be made. Central banks could do little to support the banking system then unlike today. One thing is the same, however: a pervasive and to extend unjustifiable fear about the future that obscures global economic realities for the future, one result of which is people with money closing their pocket books. It remains to be seen if the new administration in Washington will be able, through their market interventions, can get people to start spending at a higher level than they are now.

I agree with Mr. Patel that a major difference is the government's ability to create more infusion of dollars through bailouts not hampered by any gold standard. I think he is right in pointing out that printing dollars that have and will continue to take place over the foreseeable furtue will increase significantley the risk of deflation of the dollar which in turn will lead to inflation and continued difficult economic times for the world economy -- especially the U.S. for extended period of time.