A Depressing Recession

People tend to identify the economy with the stock markets, unless it directly affects them as a job loss or something like that. The economy is going to get worse before it gets better. The recent upswing in the markets does not indicate a turnaround in the economy. Markets correct every now and then for technical reasons. There is even something called a Dead Cat Bounce. There are policy decisions which affect the market directly. So long as the mainstream media do not tell us the real shape of economy, we tend to think things are getting better when we see a surge in the stocks.

It is said that Citi reported operating profit recently but rumor is that it is one of those, 'Dead Banks Walking'. No stimulus is going to fix the economy. The sooner they let the failed entities to fall, the sooner things can try to make a recovery.

Recently the Chinese voiced their concern over their investments in the US. The US will need to issue a lot of debt to finance their deficit. Sooner or later, there will not be enough people to buy that debt. Then they will have to increase the interest which is not an ideal condition for growth of the economy. Or the Fed will start buying those. Search for quantitative easing for additional info. Printing more dollars is like an indirect taxing. It debases the existing currency.

I think this here is not comparable to the Great Depression.

This could be a Greater Depression..

Those are just my opinions. I am not qualified to make predictions on these matters.