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Why This Recession Seems Worse Than '70s and '80s
YAHOOoooooooooo ^ | Friday February 13, 2009, 11:37 am EST

Posted on 02/13/2009 1:19:51 PM PST by BenLurkin

If you think this recession is the worst since World War II, chances are you weren't born or working during the downturns of the 1970s and '80s, you're listening to President Obama too much or you're a white-collar worker in financial services.

... you may even think we're on the verge of another Great Depression.

At this point, the only thing that may be true is your age and employment status.

"The current situation has nothing in common with the Great Depression," says economist Steve Hanke of the Cato Institute and Johns Hopkins University. "The sooner they [in Washington] stop spinning the bad news story and say nothing, the sooner we'll be more confident."

Hanke is not alone in dismissing what appears to be a potent cocktail of misinformation and doom and gloom, wherein the current recession-now in its 13th month-is already considered worse than the 16-month ones of 1973-1975 and 1980-1982.

"We were pretty scared in '82; things looked horrible for awhile," says Bob Stovall of Wood Asset management and a 55-year veteran of the securities business. "I don't think you can say it's worse than then; its different. You have changed the landscape but you did that in the Midwest when you forced a lot of rust-belt companies to the wall."

"This time it's financial firms going out of business, instead of manufacturing ones, and the jobs are going with them," explains Stovall.

"I do think that's part of it," says Robert Brusca, chief economist at Fact & Opinion Economics, saying that. "They're the ones making the pronouncements. People in the financial sector are getting crushed.

"I don't remember a president talking down the economy as much as President Obama," says economist Chris Rupkey of Bank of Tokyo-Mitsubishi. "The economy is very psychological. There's a herd instinct."

(Excerpt) Read more at finance.yahoo.com ...


TOPICS: Business/Economy
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"I don't remember a president talking down the economy as much as President Obama," says economist Chris Rupkey of Bank of Tokyo-Mitsubishi. "The economy is very psychological. There's a herd instinct."
1 posted on 02/13/2009 1:19:52 PM PST by BenLurkin
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To: BenLurkin
Why This Recession Seems Worse Than '70s and '80s

Because most people's memories are a few weeks long...

2 posted on 02/13/2009 1:21:12 PM PST by Onelifetogive (Let's get to altering or abolishing!)
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To: BenLurkin

This is exactly what I have been trying to tell my liberal friends for months. They’ve bought the whole “worst economy since the Great Depression” idiocy.


3 posted on 02/13/2009 1:21:31 PM PST by Skooz (Gabba Gabba we accept you we accept you one of us Gabba Gabba we accept you we accept you one of us)
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To: BenLurkin

Obama does not have the normal survival instinct. Which may be a problem for us in the future.


4 posted on 02/13/2009 1:21:41 PM PST by texmexis best (uency)
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To: texmexis best
It's intentional. He's been instructed to crush America's morale and he is going about the job as instructed.
5 posted on 02/13/2009 1:22:50 PM PST by BenLurkin (Mornie` utulie`. Mornie` alantie`.)
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To: BenLurkin

Yep.

If you get people worked into a panic, they are less likely to object when you deprive them of their liberties — to make it all better.


6 posted on 02/13/2009 1:24:03 PM PST by Skooz (Gabba Gabba we accept you we accept you one of us Gabba Gabba we accept you we accept you one of us)
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To: texmexis best

“Obama does not have the normal survival instinct. “

Exactly. In 1982, Reagan challenged America to help itself, calling gov’t the problem.

In 2009, Obama says the gov’t needs to bail you out or we’ll never recover.

Which course of action inspires?


7 posted on 02/13/2009 1:24:21 PM PST by Slapshot68
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To: BenLurkin

Takes a manufacturing base to pull an economy out of recession. Has anyone seen ours, it seems to be missing? Oh wait, there it is, in China.

Of course, we don’t like to talk about that on FR.


8 posted on 02/13/2009 1:24:35 PM PST by brownsfan (We are sooooo screwed.)
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To: BenLurkin

Because, as it turns out, Phil Gramm was absolutely 100% correct that we are a nation of whiners.


9 posted on 02/13/2009 1:25:53 PM PST by scottinoc ("Katie, you're not the center of everyone's universe."-Gov Palin)
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To: BenLurkin
It's intentional. He's been instructed to crush America's morale and he is going about the job as instructed.
10 posted on 02/13/2009 1:26:25 PM PST by subterfuge (BUILD MORE NUCLEAR POWER PLANTS NOW!!!)
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To: brownsfan

We don’t manufacture anything?

http://investing.curiouscatblog.net/2008/09/23/top-manufacturing-countries-in-2007/

Not saying it couldn’t use a kick in the pants, but we still lead the world in manufacturing.


11 posted on 02/13/2009 1:26:44 PM PST by Slapshot68
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To: BenLurkin
I think this is the basic plan. Obama has now passed a massive Spending Bill (its not intended to be a stimulus package). He's moved the country very far down the road toward socialism, and he's set a tone for his adminsitration ("You need government to solve all your problems.")

It's now time for Obama to talk UP the economy. It's now time for the media to talk UP the economy.

They may have caused some real problems with their past down talk, and this may be a little bit of a struggle. But in general, if they can talk it up enough, they will seem like winners, and we will all we thrilled to live in a Workers Paradise.

And the problems are real and huge and insurmountable, and if we all crash and burn, Obama can just tell us that the Republicans reduced the size of his *ahem* Stimulus package too much and it's not his fault -- he tried.

12 posted on 02/13/2009 1:27:02 PM PST by ClearCase_guy (Obama must be the Antichrist. No one else would work so hard to destroy the US.)
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To: BenLurkin
That brings us to my duct tape stimulus package. Tape over the pie-holes of Obama, Geithner and Bernanke. Could do wonders for the markets.
13 posted on 02/13/2009 1:27:37 PM PST by colorado tanker ("I just LOVE clinging to my guns and my religion!!!!" - Sarah Palin)
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To: BenLurkin

It’s not a recession, it’s a crisis of confidence. And no amount of jive talk is going to fix that.


14 posted on 02/13/2009 1:27:46 PM PST by Tarpon (If you don't stand on principle, you stand for nothing at all.)
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To: BenLurkin

What’s the total job losses since the election?
Businesses know what’s coming and Obama is making it worse with this doom and gloom rhetoric.


15 posted on 02/13/2009 1:29:15 PM PST by griswold3 (a good story is more compelling than the search for truth)
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To: BenLurkin

While I won’t compare it to the Great Depression right now, I have to say in some regions of the country, unemployment is pretty dang rough.

And I don’t know if California was giving out IOU’s for tax refunds.


16 posted on 02/13/2009 1:29:36 PM PST by autumnraine ($335 Million for STD research, still no cure for cancer. Thanks Obama)
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To: BenLurkin
Hanke is not alone in dismissing what appears to be a potent cocktail of misinformation and doom and gloom, wherein the current recession-now in its 13th month-is already considered worse than the 16-month ones of 1973-1975 and 1980-1982.

13th month? So we were in a recession while still growing in the first half of last year?

I've heard that one of the primary reasons why this recession seems worse is because the economic damage hit the banks right away and spread very quickly from there. Most others are much more gradual as things slow down.

17 posted on 02/13/2009 1:29:58 PM PST by KarlInOhio (On 9/11 Israel mourned with us while the Palestinians danced in the streets. Who should we support?)
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To: BenLurkin
We didn't have the debt load in 1982 that we have now. And that debt load is courtesy of decades of tax-and-spend (actually tax-and-spend-more-than-taxed) policies of the Democrats and their entitlement mentality. If we stuck to the Constitution government would be a small fraction of its current budget.

This is their mess, they own it, and it will be worse because they have all the wrong instincts. Individual Americans who got indebted over their heads precipitated this crisis but it has been building a long time. And responding by massively increasing the indebtedness of the whole nation to relieve the problems caused by indebtedness of a small portion of the population is sheer madness in the long run. It's like watching a drunk on a losing streak who keeps doubling down his lsoing bets. With our money... this is not going to end well.

18 posted on 02/13/2009 1:30:35 PM PST by Liberty1970 (Democrats are not in control. God is. And Thank God for that!)
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To: BenLurkin

my take is, there are a WHOLE lot more entitlement mentality folks who went through schools that worried more about their self worth than actually teaching them anything, especially that they are owed a living. Add to this the guilty feeling 2 working parent families that gave them everything and they worked for nothing. Add to that, the greatest generation is dying off so fast and you have a huge majority of people running around like the oooohhh nooozzzz guys.

Hubby has been out of work for 4 months. FINALLY he is starting a new job next week. Been tough, but we cut back and survived. The Paris Hiltons, P Diddy crowd just can’t handle that mentality. ‘what, no coach bag this week?’ “no $700.00 shoes, no sweet 16 million dollar bash???? OOOHHHHH NOOOOZZZZZ!!! Good luck to them when the bond bubble bursts, the economy really does tank, and they are just like the rest of us little people after their now poor daddies jump......


19 posted on 02/13/2009 1:31:14 PM PST by wombtotomb (since its "above his paygrade", why can't we err on the side of caution about when life begins?)
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To: texmexis best

Obama is trying to create a crisis in our capitalist society so he can create a new one in his image.

He’s burning it down on purpose.


20 posted on 02/13/2009 1:31:44 PM PST by MeanWestTexan (Beware Obama's Reichstag fire.)
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