You don’t say

The headline on Drudge made me laugh.

“‘WE ARE ON THE VERGE OF A GREAT, GREAT DEPRESSION‘”

Really now? I am… so very surprised!

“Interest rates are amazingly low and that, thanks to Ben Bernanke, is driving everything,” Yastrow said. “We’re on the verge of a great, great depression. The [Federal Reserve] knows it. We have many, many homeowners that are totally underwater here and cannot get out from under. The technology frontier is limited right now. We definitely have an innovation slowdown and the economy’s gonna suffer.”

This was all entirely predictable. It was, in fact, predicted. My timing was a little off, as usual. I thought the media would start realizing the reality of the situation towards the end of 2010, not the middle of 2011. But the situation remains precisely the same one I described in the Introduction to The Return of the Great Depression and I see no reason to change a word of it.

“Due to the sizeable bear market rally that began in March 2009, many, if not most, economic observers are presently convinced that the global economic difficulties of last autumn are largely behind us now, courtesy of the aggressive, expansionary actions of the monetary and political authorities.

They are wrong. It is not over. It has only begun.

I believe that what we have witnessed to date is merely the first act in what will eventually be recognized as another Great Depression.”

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