Entry FeedWhen we were kids, we heard stories about Chicken Little or the Boy Who Cried Wolf, and it gave us an idea that bad things happen when people lie. However, every day our kids see that adults lie, and nothing bad ever seems to happen to them.
I am getting tired of Chicken Little Obama and the sky is falling. Hey - if I was American, I would have voted for Obama. I liked him. I liked the idea of Hope. What happened? Did Bush leave a secret letter in the oval office disclosing the truth?
I bet the letter went something like this:
Hey Barack! Look, things aren't as bad as you think. They are worse. Me and my guys, well, we really f*(&%^#% up bad. But it is a secret. And now that you have taken the oath, you are stuck with it and you can't tell anyone. Not even Michelle. So good luck! Remember, when you are done you get to go on a speaking tour and you get paid more for each speech than your annual salary. There are ding-dongs and twinkies in the bottom drawer. Cheers! G W B
Yes, the States are in the middle of the largest banking crisis since the Great Depression, created entirely of their own greed. However, this isn't yet close to the worst recession since the depression.
Look, I am not an economist, though I did take Eco 020 in university, almost making me an expert (just kidding.) During the Great Depression unemployment rates rose to 24%; currently they are around 8%. In the 80's, we saw unemployment rates of 11%.
Was the depression worsened by lack of action by the American Government? Yes.
A depression is defined by real GDP declining by more that 10%. The Great Depression in the U.S. was actually two depressions - the first was from 1929 - 1933 that saw a 33% decline. WOW!
The next worse recession in the U.S. was in 1973 through 1975, which was 4.9%. Not even close.
Economists have a joke - A recession is when you neighbour loses his job; a depression is when you lose yours. Economists disagree on what causes recessions, and on how to define them. However, they do tend to be able to point to when we came out of the recession, a few quarters after the fact.
Really, job loss is no joke. It is hard on families. Adding to the current mortgage crisis in the U.S. many families are in danger of losing their homes.
With two income families, more the norm now than in the past, maybe it will help insulate more families from real struggle. I don't know for sure, I just have Eco 020. And I think I got a B.
The media, and many politicians, are running around saying that this is could be worse than the depression. Forecasting all doom and gloom - I am not sure if they want to scare us, or prepare us for the worst. I thought Obama was about hope - his campaign was optimistic. Boy, he sure changed his tune.
Sounds to me a lot like Chicken Little's claim that the sky is falling - I hope it's just an acorn. I hope you and your family are OK right now.
And I really hope that Obama and the media are wrong. But as any economist will tell you, only time will tell.