Depression (economics) - Wikipedia, the free encyclopedia: "Considered a rare but extreme form of recession, a depression is characterized by abnormal increases in unemployment, restriction of credit, shrinking output and investment, numerous bankruptcies, reduced amounts of trade and commerce, as well as highly volatile relative currency value fluctuations, mostly devaluations. Price deflation or hyperinflation are also common elements of a depression."
Now, I don't know about you, but I'm seeing this. With the Dow sinking 300 points today with no bottom in sight, despite the bailouts of the bailouts, what we have is a recession severe enough to be called a Depression. Yea, that's bad.
The reason you're not hearing it called a "depression," however, has more to do with politics than economics. The banks aren't caving in as they did in the 1930s, and the reason they aren't is that the Democratic Congress is propping them up, with what seems to be a never-ending stream of bailouts. Some might argue that it's good to not let American banking fail. Maybe so,maybe not. But the Democrats will pay any price - including sacrificing the long-term security of the country - to not be seen as the party that led us into another depression. Performance and reality be damned, they know that if this comes apart with them at the helm, there will be hell to pay at the polls. But through their actions in trying to limit the scope of the economic downturn, they have precisely caused the depression.
Further, don't expect the media to be jumping on the "depression" bandwagon; they were the ones who anointed Obama and the Dems in the first place, so they have a hand in this. But one has to wonder if they saw their own demise as part of the New Order?
The fruit on the Tree of Irony is, indeed, flush. Too bad we can't eat it.
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