Banks are failing, housing crisis is getting worse, gas prices are high--are we heading for a depression?

Question

The stock market wouldn't let some trading go on today because of the high numbers of stock shorting. Bush has no concept of what to do as President. I know Bernake is trying hard and most of this can be traced back to Greenspan, but can we pull out of this problem?

Answer 1

Listen to this then decide for yourself.

http://www.financialsense.com/Experts/20...

Answer 2

I believe we are in a recession now.  Did you hear the speech Bush made today?

Bush and Congress gives a rat about the American people.  It obvious, we cannot afford gas to get around, cannot afford the food and lord help us trying to maintain a place to live.  We can pull out this situation, when Bush goes back to Texas and leave the White House to someone that knows a little bit about helping the citizens of this country.

Answer 3

The unemployment level is nowhere near depression levels, let alone recession levels.

Depressions are characterized by severe deflation, not the inflation you mention.

The housing market could be near a bottom now. See the current Barrons' magazine online article.

No one knows where banks are going, but the market has already priced in substantial downside.

The Feds understand how the economy works a lot better now than they did during the depression, notwithstanding their incompetence in letting the housing bubble happen. But virtually no one saw that coming.

We're all going to be paying the price for the mortgage mess for a long time, but that doesn't necessarily mean a depression, only slower growth. It's a global economy now, and many parts of the globe are still growing pretty fast.