Maybe Just a Teensy-Weensy Depression…

Here's an interview with one of the few people who warned the housing bubble would pop with a bang. Nobody listened, of course. But Yale economics professor Robert Schiller's outlook for a speedy recovery is quite grim. Is anybody listening now?

“This is not a run-of-the mill crisis that we’re seeing. The volatility in the past month, with the exception of one time in 1987, has not been seen since the Great Depression. The great Depression started with a big shock October 28 and 29, 1929, and then volatility stayed up for the better part of a decade in the stock market. Now we’ve seen another shock up, and the big question… is this 1987 again, or 1929 again? I’m actually fearful that it’s 1929 again – not in all respects – but in terms of volatility. Because it seems the situation we’re in now is very different from 1987. There’s much more of a fundamental shock to confidence, and much more worry set off among investors.”
-Robert Schiller, Economics Professor, Yale University

A closing comment from Mish:

Nine out of 10 of the world's largest economies are contracting. China is the lone exception, but even in China manufacturing is contracting.

South Korea, the world's 14th largest economy is contracting and Mexico and Australia, 13th and 15th respectively, will soon follow suit although both are in denial at the moment.

How so many people thought that China could decouple from the US and lead world growth higher remains somewhat of a mystery except to note that irrational exuberance always marks the top.
-Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com/2008/11/global-recession-country-by-country.html