Why the Great Depression lasted so long
By Daniel at 6 November, 2008, 5:24 pm
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QUOTE OF THE DAY & Socialist News Flash:
“Why the Great Depression lasted so long has always been a great mystery, and because we never really knew the reason, we have always worried whether we would have another 10- to 15-year economic slump,” said Ohanian, vice chair of UCLA’s Department of Economics. “We found that a relapse isn’t likely unless lawmakers gum up a recovery with ill-conceived stimulus policies.”
- Harold L. Cole and Lee E. Ohanian, UCLA Study on New Deal Policies
http://newsroom.ucla.edu/portal/ucla/FDR-s-Policies-Prolonged-Depression-5409.aspx
With credit bubble imploding the economy will go into a black hole because most of it runs of credit starting with the consumer. No reason for oil not to go to $10-20/Barrel rang when all the this credit bubble started.
China, India? Without the US and the EU consumer their factories will shut down. Then growth will implode too. 7-9% GDP growth that they have can go to zero in a couple of quarters if the export factories shut down.
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