Sunday, July 17, 2011

Lesser Depression is still a depression

Somewhere along the way the Great Recession became the Lesser Depression. No one asked for my help on these naming conventions.This seems relentless. Asset classes are repricing downward, input prices are rising and you are not able to pass the increases to your customers. Paul Krugman offers this which nicely summarizes the last five years:

But the upshot is terrible: more and more, this really does look like the Lesser Depression, a prolonged era of disastrous economic performance.