Winged Wheeler

Why the use of the word depression? Why not recession? Since the 18th century, economic downturns in the US had all been referred to as depression--including the "great depression" of the 1930s. Like a departing hall of famer, we retired the number, and no one has used the word depression until now.

Since the problems in the economy are still being blamed on the previous administration, it is politically beneficial to use the word depression as opposed to recession. The current administration got the "stimulus" bill passed by talking down the economy, scaring the electorate, and minimizing congressional debate. Business reporters will use the word because it stirs the pot and might increase viewership.

It is possible that the economy will continue to get worse, but for now, I don't think that any measures are worse (except gov't deficit) than the recession of the early 1980s.

I would concede the point if someone could show me an accepted, technical definition that indicated that this was, in fact, a depression. Until then, I reject the word as a cynical manipulation.

WW

ryan1234

When I think of "depression" I think of my grandmother telling stories of rationing bread and picking blackberries for blackberry stew every night. Honestly here.. .depression... just look at any major highway... millions of cars on the road... every steakhouse has people in it (albeit slower), but none the less people are going out to eat, etc. Manhatten isn't lined up with people in soup lines!

The Fed needs to put the brakes on before this blows up again.

Of course central bankers are the ones to rewrite financial history... just like the victors write military history... so perhaps it will be a "depression" and the almighty wisdom of the Fed saved us from collapse Mad Max style.

Zapata

Cramer is a learned and entertaining TV personality and that is all that he is to me. He has been wrong on more occasions than he would care to confess. Not that I'm better or anything but, better financial advice is out there.