An excellent look at the two events in American history…..this virus has caused so much confusion that all info to help readers understand should be applauded. chuq
Plenty of discussion about V-Shape recovery, and how we’re going to avoid the depression, so before we start looking for a difference between 1929 vs 2020, how I see it, let’s define some basics :
The trigger – can be anything that can blow up the economy based on excessive debt. Now we have COVID19 which is nothing more nothing less, just a trigger checking how economy is powerful to survive in an unproductivity caused by too much debt.
Deflation – should be debt deflation. Economy collapse caused by excessive debt as a result of keeping artificially too low interest rates for too long aka “cheap money”. After financial crisis there is no return, so “cheap money” also must be supported by balance sheet expansion to push even more excessive debt, which finally turned counter-productive slowing down economy by itself and await for a trigger to unload. Economy depression in…
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