Comments Related To: Nobel Prize Winner Paul Krugman warns that the second Great Depression will be difficult to stop

In this time and age, a second great depression will be even worse than the first one and we so don't that to happen. I hope the leaders come up with a sensible plan to rescue economy and before we plunge deeper into anything even close to the GREAT Depression we are successfully pulled out of it!

Average recession in US 12-24 months, current recession is 12 months old. We may already be on our way out of this, slowly, yes but on our way back.

Current unemployment is 3% below levels in mid-80's from which we emerged unscathed and only 2% above what is called "structural" unemployment. Housing inventory is beginning to shrink.

Those warning of dire economy seem to have a whole lot less data than those counseling more restraint. How much of this is hype, marketing, campaigning etc and how much is real?

Perhaps most importantly, has anyone EVER barrowed their way to prosperity? No. We need real people creating real value and real opportunity. The current proposal has NO chance of aiding that process and will likely hurt it by crowding out barrowers that can actually create long term, private sector jobs. The current plan will extend not alleviate the current problems.

Good to see you writing again, MarcusCato.

The obstructionist Democrats in Congress need to get behind Obama on the stimulus package and quit acting like a bunch of foolish Republicans.

Thanks for your encouragement.

This article raises certain valid points. Like Majdy, I hope that we can avoid a second Great Depression, but that's like me saying I hope Israel stops its attacks on Gaza today! We can hope.. but the fact of the matter is that if liquidity does not help, what will? Someone needs to come up with other (better) measures, however, I do think it is inevitable, and we will need to go through a lot of tough times in the coming year.

JohnnyG, I am afraid one cannot rely on prayers and hopes alone. That is why President-elect Obama is hoping to launch a massive economic stimulus plan.

I would agree to your point here. Marcus i think the basis of American Economy was on small businesses i.e. entrepreneurs.They were the ones who fueled American economy. In someway if Obama revives the planning and support for start ups. It might help reviving the economy slowly but steadily. The bail out plans are not the long term solution here.

This is my own analysis. How helpful can this be, i can say much.

I was in my twentys in the eighties . I would get layed off a lot but I always had a another Manufacturing job to go to. Now there is NOTHING .I know white collar jobs are being lost too. The unemployment % rate is way off. Peoples unemployment compensation runs out and they go off the list. this is bad! very, very bad . Jobs were sold out to China by Walmart , ect for high profits . now it coming back full circle to haunt the greedy bastards . No jobs , no spending period .Just hope to keep a roof over your head and weather the storm.