Since my first book, way back in the 1980s, I’ve warned that we’d see an Economic Winter Season between 2008 and 2023. And since 2008, it looks like I was way off. We weren’t clearly in a depression, although we did get the worst recession since the 1930s. In fact, we seem to have grown – albeit slowly – thanks to the free money from central banks.
When we compare the cumulative real GDP of the 11-year period from 1929 (the market top) through 1940 (the bottom of the Great Depression) to the most recent 11-year period from 2007 through 2018… the picture is very different.
It turns out that we’ve performed slightly WORSE during this Economic Winter Season than we did during the Great Depression!
We just haven’t felt it in the same way because QE efforts muted the effects!
I share all the numbers comparing the two periods, and explain what the hell has been going on, and why we are, in fact, in the Economic Winter Season, in today’s video. I also explain one key difference between the two crises in the Great Depression and the two in our modern Great Recession, with the worst crisis still ahead. In the 1930s, the worst crash and depression came first. This time that most deadly crisis comes last!
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P.S. My thanks to David Stockman, who will be speaking again at our Irrational Economic Summit in Washington D.C. this year. It was he who alerted me to these numbers and the shocking revelation they make.