Move along everyone, no depression to see here – so says Christina Romer, the White House’s chief economic adviser. Yes, the same adviser that recommended massive debasement of the US dollar to get us out of this mess.
Christina Romer, chair of the Council of Economic Advisers, said Tuesday evening the main difference between last year’s economic crisis and the Great Depression was that the federal government took decisive action to shore up financial institutions and stimulate the economy. (Source: CNNMoney.com)
Can’t help but think that this strikes me as a premature victory celebration of sorts. I don’t really see anything getting better fundamentally. And this massive stock market rally has just now matched the 1930 rally. Remember, rallies like this don’t happen in bull markets.
In fact, around this time in 1930, we were also treated to similar declarations of economic victory:
- “The worst is over without a doubt.” – James Davis, Secretary of Labor
- “The Depression is over.” – Herbert Hoover
- Is 2009 a repeat of 1930? Why Depressions May Rhyme
- Newspaper headlines from 1930 that will remind you of headlines today.