It is obvious we are heading to another recession if it has not started yet. What is important is the scale of this financial crisis. It seems we were on the verge of global financial collapse in 2008 and somehow we survived. I have been listening to different economists ever since and many predicted we may face a more dangerous crisis in future, but nobody could pinpoint the exact year. Coronavirus brought this self isolation and massive economic slow down right before the expected recession. Can this cause another depression? And if it is possible, how can we get prepared for that. In my opinion we have all the ingredients for a financial collapse but it depends on government policies, public and market responses, and many other factors as well. What are your thoughts on this subject?
It depends on lessons learned through Covid19. I think the government has signaled they are going to print money. Recent purchases of the dollar show that the world banks don't have a problem with that yet... Does MMT work? I have a feeling we are going to find out.
Trump is on it! Will this help? :rolleyes; The Trump administration was condemned for considering “rewarding vulture capitalists profiting off a crisis.” As desperate workers, the unemployed, and small businesses struggle to obtain benefits authorized under the multi-trillion-dollar coronavirus stimulus package President Donald Trump signed into law late last month, the White House is reportedly considering an additional slate of aid measures that critics say would disproportionately favor the wealthy while providing little relief for those most in need. “A capital gains tax cut would be smash-and-grab economics with no value to the economic and medical calamity facing us.” —Zach Carter, HuffPost
I even watched the sequel. Anyway, I don't see a Great Depression 2, because the government will prop up the financial system unlike in the Thirties, and because it will drop money from helicopters unlike in the Thirties. Other reasons, but those are the main ones. Those being Democratic innovations, naturally. Republicans are bad economists.
Large scale bankruptcy, unemployment rate, wall street crashes and economic down turn in scale of great depression of early 30s. https://en.m.wikipedia.org/wiki/Great_Depression https://en.m.wikipedia.org/wiki/Great_Recession_in_the_United_States https://en.m.wikipedia.org/wiki/Great_Recession 2008 economic down turn was a tough time to live and yet it is referred to as great recession (not depression). Depression happens when the situation is even worse than 2008. I don't know the exact technical indicators for a depression but guestimating the situation compared to 2008 great recession and 1929 great depression gives me chills.