I think his words are a tad premature and maybe betrays
his own fear:
**Federal Reserve chairman Ben Bernanke said Monday the
current economic
situation bears "no comparison" to the much deeper crisis
of the 1930s Great
Depression.
"Well, you hear a lot of loose talk, but
let me just ... say, as a scholar
of the Great Depression -- and I've
written books about the Depression and
been very interested in this since I
was in graduate school, there's no
comparison," Bernanke said in a question
period after an address in Austin,
Texas.
Bernanke cited "an
order-of-magnitude difference" in the current situation
compared to the
1930s.
"During the 1930s, there was a worldwide depression that lasted
for about 12
years and was only ended by a world war," he said.
"During that time, the unemployment rate went to 25 percent, at least,
based
on the data that we have. The real GDP (gross domestic product) fell
by
one-third. About a third of all of the banks failed. The stock market
fell
90 percent."
Bernanke said the situation at that time
represented "very difficult
circumstances,
" because "we didn't have
the social safety net that we have
today. So let's put that out of our
minds; there's no -- there's comparison
in terms of severity."**
http://www.breitbart.com/article.php?id=081201213246.v50zx9ik&show_article=1
Well,
Ben, this bear market is only 1 year along (Prechter would say 7
years
along) and has vaporized 50% of the market's value. More market value
has
been vaporized in the first 12 months of this bear than was lost
in
1929-1931.... IN LESS TIME. No bear market has seen the Dow lose as
much
market value in percentage and real terms OTHER THAN the Great
Depression.
None. As I recollect, Lehman survived the Great Depression; not
so this
time and countless others effectively would have folded had it not
been for
the bailout. Granted, the Great Depression saw 88% high to low in
the Dow,
but this one ain't over by a long shot. Or, maybe you're declaring
"Mission
Accomplished" already. I believe this first 12 months is just an
early
warning signal this bear will be BIGGER than 1929-37. The fat lady
hasn't
started to warm up as yet. And when she does begin singing it will
be the
Carpenters "We've Only Just Begun." JMHO.