Small credit for big depression
This one is in at least three ways just as bad if not even worse than 1929-30, economists Barry Eichengreen (University of California, Berkeley) and Kevin O’Rourke (Trinity College,
Look at global industrial output, world stock markets, and global trade volumes. Map the nine months after April 2008 against the period following June 1929 and the story you see is the following:
* the decline in industrial production is at least as severe * stock markets sank faster this time * trade volumes are falling much faster now
Eichengreen and O’Rourke say the reason people tend to say that this one is second to the Great Depression is because the comparisons tend to be between the United States now and back then — not the world now and back then.
Which begs the question — if this one is every bit as bad as the Great Depression, it’s the worst since when?