NYT finally catching up... A second depression or worse?

Of course they are downplaying it... being good shills, as always.

A Second Great Depression, or Worse?

With the United States and European economies having slowed markedly according to the latest data, and with global growth continuing to disappoint, a reasonable question increasingly arises: Are we in another Great Depression?

Yes.

The easy answer is "no" - the main features of the Great Depression have not yet manifested themselves and still seem unlikely.

Really?

First, output dropped sharply after 1929, by over 25 percent in real terms in the United States (using the Bureau of Economic Analysis data, from its Web site, for real gross domestic product, using chained 1937 dollars).

Well guess what pal, once the stimulus and deficit is eliminated to 0, the US GDP will contract by at least 15%.

Second, unemployment rose above 20 percent in the United States during the 1930s and stayed there.

Real unemployment in the US right now is about 16%+ and it will go much higher once the deficit spending is eliminated.

Third, in the 1930s the credit system shrank sharply. In large part this is because banks failed in an uncontrolled manner - largely in panics that led retail depositors to take out their funds.

What you think will happen when the bank ponzi finally ends? When BAC, Citi, AIG, JPMorgan and the like blow up? When the credit default swaps blow up? When they have to take their multi billion lose in the house market? Banks today are even more leveraged than during the 20s...

Also, during the first depression, the US wasn't 100%+ of GDP in debt. Wasn't running 5 wars. Wasn't corrupt like it is today. Wasn't about to lose the world currency status. Was backed by gold... Most people were living on farms... today only 2% do and can sustain themselves...

The NYT is playing it down... a lot.

What you think will happen when the bank ponzi finally ends?

The world will default and the creditors(i.e. private central banks) will take what's theirs.