Tag: Great Depression

UBS Economist: End of Capitalism?

CNBC interviewed Paul Donovan, senior international economist at UBS, who is out shilling for government bailouts like all the other bankers.  Here’s what he has to say:


The financial system is ceasing to function effectively. The government needs to step in to support the financial system, or else capitalism is over.

Perhaps more dire was his answer to a question about whether injecting all this money into the economy would have an inflationary impact:

What we’re concerned about at the moment is salvaging something…If, in two or three years time we get back to a more normal function, [then that will be a concern.]  For the next two or three years, deflation is the concern.

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Deflation is really a codeword for Depression–for years stretching into the future.

News of the New Depression is slowly spreading.

If you’re at all familiar with Michael Fox (the columnist, not the actor), and you’re trying to decide if the current economic crisis is a recession or a full blown depression, he certainly makes it hard to be optimistic.  Back in November, Mr. Fox reported that the New Depression had already begun.  In February, he reported that it had entered Phase Two, and that it had gone global.

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