<<When the U-6 unemployment rate rises above 12.5 in conjunction with a stock market that is down close to 50%, the CPI is negative, and nominal wages are stagnant, it's an economic depression.>>
When people compare today to the Great Depression, you continually hear that, "this is different". I would agree, and like you I think we need a definition that is different. Your's look logical and I think it is safe to conclude that we have entered a depression. I can remember a year ago in December when you could look at autos, housing, state governments, retail, etc. and conclude that each one was in recession, so therefore, we were in a recession. And a year later the government comes out and declares that we entered a recession at the end of 2007. Would you like to bet that about this time next year, they come out and declare that we entered a depression in January, 2009? |
