More of my happy thoughts from over at BlownMortgage:
Two weeks ago the National Bureau of Economic Research officially confirmed what we already knew: We have been in a recession for the past year. This begs the question, how long until we declare World Depression II?
The (disputed) technical definitions of Recession and Depression make them lagging economic nomenclature. Economists debate whether we are in a swamp while everyone else worries about the ever-increasing number of alligators. The lack of an official declaration of recession mostly just gives the chattering classes something to do while avoiding taking action.
Allow me to go out on a very, very sturdy limb and declare a Depression. The economy isn’t going to recover by the end of next year. There is a only a dim possibility it will recover the year after that. But no one in an “official” position is willing to be the bearer of that piece of bad news.