It's amazing that, a few months back, in the Spring, the economy was accelerating. Summer brought the highest oil prices in history - a bubble - and the fall has brought reversals, both in oil and the stock markets. I do believe that, thanks to a panic in the credit markets these past few weeks, a recession is likely.
However, the claims and panic-button declarations of 'another Great Depression' are wrong. This is the biggest CON JOB in history! We do not face a Great Depression or anything close to it, and up until Q2 08 we were not even in recession. We were, until a panic of the elites a few weeks back, digesting the housing bubble burst in a reasonable fashion. The number of banks that are unstable is tiny compared to the thousands of steady and stable banks out there. Credit was pentiful and interest rates reasonable.
Then something happened: History may record that Paulson threw the election to Obama. Paulson took actions that created a political crisis atmosphere well beyond a mere Wall Street bear rout. Now, the panic has set in, we lost 20% in stock market value and the word 'crisis' is bandied around and comparisons (completely unwarranted) to Great Depression made. I agree our economy may be in trouble - mainly due to the fact that we face the threat OF DEMOCRATS RUNNING IT INTO THE GROUND unhindered by any opposition to their bad ideas.
This Wall St panic has managed to help Obama gain in the polls, and at least a part of me is suspicious that on the part of many players, these events were milked and exagerrated on purpose to that effect.