So I talk about a depression, and whatda I get? Crickets. But let Paul Krugman cry about one, and everybody’s talking about it. Jeez Louise, I guess it really is all about your name. And not your first name, either.
Anyhow, I understand Krugman’s point, to a point. He now says we’re on the verge of a third depression, with the two previous ones coming in the 1870s and 1930s. Got it. I’m not so sure I buy his general prescription, that more government spending is the way to go. FDR spent money for years, and where’d it get him? I’m just not totally convinced.
Now let’s assume something wild, like, oh, I don’t know, that Larry Kudlow’s wrong, and that this is the third major economic depression like Krugman says it is. Well, then, you’re looking at this: a depression, then roughly 60 years until the next one, then a depression, then roughly 60 years until the next one.
There’s a pattern there, you might say. If that’s so, it just goes further to prove that the current environment is beyond any specific policies issues. (Although I’d still argue, and have, that a number of very specific developments over the years led to our current travails.)
Meanwhile, back to the present, John Hussman is starting to sound more than just a bit worried. Now, yes, Hussman is one of the ones that wears the bear label like it’s some kind of scarlet letter. He also happens to be one of the ones that was right while entertainers like Jim Cramer were laughing off the housing collapse.