The Third Depression

Recessions are common; depressions are rare. As far as I can tell, there were only two eras in economic history that were widely described as “depressions” at the time: the years of deflation and instability that followed the Panic of 1873 and the years of mass unemployment that followed the financial crisis of 1929-31.

Neither the Long Depression of the 19th century nor the Great Depression of the 20th was an era of nonstop decline — on the contrary, both included periods when the economy grew. But these episodes of improvement were never enough to undo the damage from the initial slump, and were followed by relapses.

We are now, I fear, in the early stages of a third depression. (NY Times article)

G20 Summit Ends With Vows To Cut Global Debt


(YouTube link)

Britain's bid to rein in its record deficit by imposing spending cuts and tax increases has won international endorsement at the G20 summit in Canada. They have agreed to cut budget deficits in half by the year 2013.

It was noted that the result could mean disasterous results. I'm sure they'll achieve their disasterous goal.