David Rosenberg, one of the country's top economists, who predicted the advent of the recession in 2007, now says that the US is in the midst of a depression.
The bottom line, argues Rosenberg and others: the US economy has collapsed into another Great Depression. Citing the period from 1929 to 1932 and the eerie similarities, Rosenberg said, "We may well be reliving history here. If you're keeping score, we have recorded four quarterly advances in real GDP, and the average is only 3 percent." The same happened during the early 1930s stock market rebound of 50 percent after the 1929 crash. The Great Depression followed the brief economic upswing.Housing starts for the summer, which are normally much higher than the 100,000 (this is down by 65% for the period from 1956-2007) or so starts that have been reported, are vastly higher than commercial construction starts that have been reported to be "dead, dead, dead!"
This isn't what Mr. Obama and his party promised us during the 2008 election cycle. The Democratic Party has controlled Congress since the 2006 election cycle, when Nancy Pelosi promised "the most ethical Congress EVER!" With more than $3,000,000,000,000.00 spent on bailouts and economic stimulus, the unemployment rate which wasn't supposed to rise above 8% has started to inch back up above 9.5% once more.
On the other hand, I don't believe the GOP has the answers to the deep underlying causes of the unfolding ecnomic collapse. It's no longer whether or not that party is for reducing taxes, any reduction in taxation MUST be accompanied by huge reductions in spending. The Republican Party hasn't shown that they are in favor of doing so...their actions over the past decade show the opposit. Now the country is in the position of being able to repudiate the economic policy of the ruling Democratic Party, but I trow, that the GOP will continue the same policies, but only at a smaller scale, a la 2002-2006.
This November, we have the opportunity to end deficit spending by electing politicians who understand that we can't continue to spend money we don't have...I only hope that voters, once they go to the polls, will remember this.