“It’s nearly as bad as one terrible 12-month period from late 1973 to late 1974. Other than that, it’s the worst decline since 1932.”
I don’t mean to be pendantic, but wouldn’t it be a bit more accurate to just say “this is the worst 12-month period since 1974?”
I say this just because we have seemed, from the outset, to be in a terrible hurry to tie this to the 1932 crash. On some levels this makes sense - there haven’t been many events that have affected so many parts of the overall economic system, so broadly and in such a deep fashion.
But in our rush to tie this so heavily to the Great Depression we ignore the fact that there are measurable differences in both situations. The job market is different, the methods and amounts of leverage are different, and the vehicles of investment don’t bear much likeness to seventy-years ago.
clipped from: economix.blogs.nytimes.com
“It’s nearly as bad as one terrible 12-month period from late 1973 to late 1974. Other than that, it’s the worst decline since 1932.”
I don’t mean to be pendantic, but wouldn’t it be a bit more accurate to just say “this is the worst 12-month period since 1974?”
I say this just because we have seemed, from the outset, to be in a terrible hurry to tie this to the 1932 crash. On some levels this makes sense - there haven’t been many events that have affected so many parts of the overall economic system, so broadly and in such a deep fashion.
But in our rush to tie this so heavily to the Great Depression we ignore the fact that there are measurable differences in both situations. The job market is different, the methods and amounts of leverage are different, and the vehicles of investment don’t bear much likeness to seventy-years ago.
— Scott