Is this really a depression, not a recession?
Washington's Blog lays out the evidence. The whole thing is worth a read, but here are some highlights.
The April 20-23 Gallup survey of 1,013 U.S. adults found that only 27 percent said the economy is growing. Twenty-nine percent said the economy is in a depression and 26 percent said it is in a recession, with another 16 percent saying it is "slowing down," Gallup said.How bad are things for the little guy?
Well, as I noted in January, the housing slump is worse than during the Great Depression.
As CNN Money points out today:
Wal-Mart's core shoppers are running out of money much faster than a year ago due to rising gasoline prices, and the retail giant is worried, CEO Mike Duke said Wednesday."We're seeing core consumers under a lot of pressure," Duke said at an event in New York. "There's no doubt that rising fuel prices are having an impact."
States and cities are in dire financial straits, and many may default in 2011.
California is issuing IOUs for only the second time since the Great Depression.
Things haven't been this bad for state and local governments since the 30s.
In May, analyst Mike Mayo predicted that the bank loan loss rate would be higher than during the Great Depression.
Comments
Yes, it is a depression. We in Maryland are lucky because we aren't feeling the effects. When I visited my relatives in another state recently, I was shocked when I realized that I was the only person in a room full of people with a full time job.
Posted by: Mary | May 19, 2011 10:42 AM
Yet our state government felt it was fine to raise the budget 10.6%. Awesome!
Posted by: Neil | May 19, 2011 11:53 AM
It certainly does seem like out government is treating it like a depression, what with all the "stimulus" spending and whatnot.
Posted by: John J. Walters | May 19, 2011 11:59 AM
Is the 2% (oops on the 3%) growth the economy is reported to have had recently actual growth of just QE and churn?
I'm almost turning turtle...
afraid to look too closely at the Emporers new clothes
Posted by: MrRational | May 19, 2011 12:45 PM