On Wed, 21 Jan 2009 17:09:28 -0800, Ray Goldenberg
wrote:
>On Wed, 21 Jan 2009 19:54:57 -0500, Charles
> wrote:
>
>>. I hope we are
>>not and that we don't go through a depression, but unfortunately it is
>>possible a depression has begun. It is a pretty bad crisis.
>
>Hi Charles,
>
>My impression of a depression is unemployment of over 25% (currently
>less than 9%), lines of people in soup lines, many living on the
>street, people jumping out of windows of skysc.rs when the stock
>market crashed, etc, etc. During the Depression of 1929, unemployment
>was 25% and wages (for those who still had jobs) fell 42%. Total U.S.
>economic output fell from $103 to $55 billion and world trade
>plummeted 65% as measured in dollars. Bringing it back on the subject,
>10s of thousands of people booking cruise vacations is definitely not
>my idea of a depression. Have I watched too many movies and read too
>many history books? <:+)
>
>Best regards,
>Ray
>LIGHTHOUSE TRAVEL
>800-719-9917 or 805-566-3905
>http://www.lighthousetravel.com
http://useconomy.about.com/od/grossdomesticproduct/f/Depression.htm
Answer: A depression is a severe economic downturn that lasts several
years. Fortunately, the U.S. economy has not experienced a depression
since The Great Depression of 1929, which lasted ten years. The GDP
growth rates were of a magnitude not seen since:
You would not consider 10-15% unemployment lasting 10 years a
depression?
We can argue about figures but they are really meaningless. In 1929
most people did not own their own homes so the foreclosure rate had a
different meaning.
We can't talk our way out of this one by riding a horse waving and
smiling to the electorate. In my opinion we have just begun the
downward slide.
Thumper |