Professors Barry Eichengreen (Berkeley) and Kevin O'Rourke (Trinity) have produced a great series of charts that compare the progress of this worldwide recession with the Great Depression of 1929.
Effects on world industrial output and world trade volumes are worse than the Great Depression of 1929!
The good news, however, is that equity markets the world over have been quick to price all this in, perhaps protecting us from the slow painful slide seen last time around (fast and painful, or slow and painful? i prefer the former!)
And add to that the massive (I mean MASSIVE) monetary and fiscal stimulus laid on by governments and central banks. Raises the hope that today's green shoots are really the oaks of tomorrow!!
The good news, however, is that equity markets the world over have been quick to price all this in, perhaps protecting us from the slow painful slide seen last time around (fast and painful, or slow and painful? i prefer the former!)And add to that the massive (I mean MASSIVE) monetary and fiscal stimulus laid on by governments and central banks. Raises the hope that today's green shoots are really the oaks of tomorrow!!
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