In turbulent market and economic times, historical perspectives can provide valuable wisdom. Irwin Kellner, chief economist at MarketWatch, penned an article on September 28 that contrasts today's economy with that of the Great Depression. He states that the economic collapse of the 1930s was caused principally by higher income taxes, higher tariffs on trade and a restrictive money supply. None of these three factors are present in today's environment.
Kellner also outlines that, while the current economic situation is serious, it is nowhere near the levels of a Great Depression in regard to unemployment, GDP, mortgages delinquencies, bank failures, and other indicators. Please click here for Kellner's article, "Don't Call it a Bailout. Or a Depression."