The Economy is in a Modern Day Depression
09/09/2010 0 comments
David Rosenberg of Gluskin Sheff had the following commentary on Sept. 2, 2010:
"The economy is in a modern day depression. A depression, put simply, is a very long period of economic malaise, a series of rolling recessions and modest recoveries over a multi-year period of general economic stagnation as the excesses from the prior asset and credit bubble are completely wrung out of the system. Depressions usually are caused by a bursting of an asset bubble and a contraction in credit, whereas plain-vanilla recessions are typically caused by inflation and excessive manufacturing inventories. You tell me which description fits the bill today."
Depression or recession is purely semantic. But investors indeed need to recognize that 'this time is different (from previous recessions)'. The de-leverage process is something unique. It is highly recommended that readers read the full article.
labels:investments,market,
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