You Call this a Depression?

I agree somewhat with the author that we haven't even come close to the hardships of the Great Depression.

What I don't agree with is the "no cause for alarm" tone that Mr. Samuelson is taking.

As many people have noted, the economic numbers are *very* misleading right now. Oil companies account for a disproportionate share of revenues, and many, many businesses are failing. Quite honestly and frankly, it's a TERRIBLE and weak economy that concentrates its profits into three or four companies out of millions, because if any of those companies suddenly decide to relocate part or all of their operations overseas - an incredibly strong possibility in the future given the mercenary attitudes of the petroleum industry - suddenly the economy takes a massive tumble. In addition, a tremendous amount of both innovation and community investment comes from smaller companies as opposed to massive megalithic corporations.

The fact that unemployment numbers no longer count those who don't receive unemployment benefits makes that statistic a sham now, and whoever approved that change should be shot dead in the street. That's a change deliberately designed to artifically lower numbers and make it look like things aren't as bad as they are, which makes the crisis far worse by the time people realize what's actually up.

And besides the banking failures - bad enough in their own right - the most disturbing statstic to me is that there are still more than two and a half *million* properties in foreclosure in the U.S. That's probably something like six or seven million people losing their homes, and when people are in those desperate straits, they're not buying the majority of retail goods, they're not buying computers, they're not buying just about anything except food and whatever kind of shelter they can get. That's an enormous hit to retail, technology, non-primary-care health industries...almost everything...it's much like taking six to seven million people more or less out of the economy. And the ones who just lose everything end up on the streets. I have to believe there's an absolute epidemic of homelessness going on right now in this country; if anyone knows otherwise please tell me so. Homelessness increases theft, murder, and is a public health risk from people who contract diseases from poor living conditions which can then be passed on to the general population.

It's a pity that this administration will more than likely never be brought to accountability by the nation. Nixon committed far less crimes and did far more good than Bush and his fellow thieves ever will, and he was impeached. I don't understand why a tremendous number of people are still giving this irresponsible, selfish, prideful, and utterly harassing man a pass.

Comical. Good to see other commentors recognizing this article for what it is. Pure crap. The author is suggesting we have to mimic the economic results of the great depression before we can use the term. The reason the great depression was great is because of how incredibly bad it was, not because it's the benchmark for all future economic downturns wanting to use the term depression. Sounds like another wannabe economist who thinks its all in our heads. If we could only stop being such a nation of whiners, we would see how Bush economics is really our salvation. What a joke.

I agree that this is not a depression. However, it is more nefarious than an innocuous-sounding "business cycle". The mortgage crisis was caused directly by Bush and company deregulation of "exotic financial vehicles". This is very similar to the Savings and Loans crisis and bailout caused by Reagan deregulation. Unfortunately, ideology trumps common sense with this bunch. It is not that Republicans are wrong or bad, just that blind followers of ideology always repeat the same mistakes. Too bad we continue to listen instead of saying "hey, just because a guy makes $20 million a year does not make him holy or trustworthy or beyond oversight.

Pink Panther is a nut case.

While overall the economy is doing fine, families are not. As seen by comments by pinkpanther , some people have gone over the edge. Lets hope the rest of us can hold it together.

The author says in his most hypnotic tone: "No need to worry. This is way different from a depression. Your imaginations are just running away from you. Those people at your door to repo your home and car are not real. When you walk into the grocery store, the prices you see are not considerably higher than they were 3 years ago. It's just your imagination. bla bla bla."

I don't care what what title they want to put on this thing. Depression, recession makes no difference to me. All that I know is i can feel it and it ticks me off when I hear people (like that McCain rep. and the author of this article) poopooing it as something that's only in our imaginations.

Unemployment numbers, inflation whatever.. If they don't like the looks of a number, they get some funky mathematician in there to change the formula to make things look better than they really are. The fact of the matter is, we're in more debt than we've ever been before, our roads and highway system is in real trouble, our healthcare system is becoming something only the rich can afford, gas prices are through the roof (and we still got winter coming up) , we're in a war that's costing billions of dollars a month and we're bailing out greedy institutions full of "financial experts" because they couldn't forsee somebody making minimum wage can't afford to pay for a $200000+ home. Somewhere somehow somebody's going to have to pay for this. Guess who that will be? this is going to get way worse before it gets better.

Pink Panther is a nut case.

This comment from the article, put forth as evidence of the economy's strength, is a sign of what is wrong with Samualson in particular and our economic indicators in general:
"Although profits in the first quarter of 2008 were down 46 percent from 2007, they totaled $19 billion even after $37 billion set aside for loan loss reserves. Overall corporate profits are still running at a near-record". My point is, Corporations may be doing very well. That does not mean that PEOPLE are doing well.

Some people try to make this out to be a "liberal" issue, or they talk about the "liberal" media. Unfortunately if one starts talking to them about actual facts they are clueless. I am not liberal or conservative for that matter. I just happen to be a well educated person who reads and cares about what happens to our countries future. So I urge the people that like to point fingers and do sabre rattling here instead of being informed, to read up about issues concerning oil, energy, and the dollar and take some basic economic classes. Don't whine about the liberal media or anyone else for that matter. Be informed!

No matter how much the liberal media tell us how bad things are and no matter how much the liberal Democrats sabotage our economy, God is protecting the innocent US citizens from their attacks and the economy keeps holding up. GOD BLESS AMERICA!!

What the writer of this article does not take into account is the ever escalating cost of fuel. M.L. Hubbard wrote a paper years ago that predicted the economy would crash when we reached "Peak Oil" which predicted the point when demand starts outstripping supply. That's exactly what is happening today. We can't pump enough fuel out of the ground to keep up with demand. We're just experiencing the tip of the iceberg right now. Wait till oil hits $200 a barrel and lets see if this article still holds up. These "opitimists" ignored the initial signs of a pending recession a year ago, and they keep making comments that belittle the nature of our excessive behavior. This is a correction and a wake up call, and the only question is whether my fellow American citizens wil take heed by demanding congress take regulatory action in the banking, real estate, and oil industries, and promote alternative energy power. If we don't start taking action in these areas and we try artificial remedies like the Fed are proposing, I think the term "Depression" is going to become a lot more relevant.

Are there problems with our economy? Sure! But, if you listen to the liberal media, you would swear that the world is near the end! Talking about the "sky is falling prop" that is being spread... Now, they are dopeys that will believe. If you going to have major surgery with Doctor Kill Patient, wouldn't it be good idea to get a second opinion? Put your brain in gear folks... And don't let the media freak you out!

A typical sales job , to confuse the dialog, Nobody said depression! Try stagnation, the worst of all situations for us lowly middle class. The economy might still be great for you guys on the top, and the unemployment rate may only be 5.8%, but the majority of us have jobs that don't pay for sh@#.

It is obvious that the news media and left have made this all up to discredit the current administration so that they could con the american illiterate into thinking it has all been the Presidents fault.
Our current economy has been led by false reporting and the American people to get out of debt.

There's a great line in the film Men in Black (yes, MIB). Will Smith's character insists that people are smart, which elicits this reply from Tommy Lee-Jones' character: "A person is smart. People are dumb, panicky, dangerous animals..."

Let's hope hype doesn't fuel any more runs on financial institutions. They have enough real problems without frightened people exacerbating them.