Global Depression

Of late, inflation, tumbling share markets, and a world wide financial crisis were the talk of the town. Even, an outbreak of dengue (or some claimed to be a mysterious disease caused by the droppings from swiftlets) is being overshadowed by the economic turmoil the world is facing. The talk of an opposition leader snatching the leadership from the present PM is no longer the focus of "political analyst" at coffee shops in town. What is looming behind the doors of the closet of all those involved in this "Great Depression"? Is there a Boogeyman waiting to pounce on the next easiest or juiciest victim?

"The worst is yet to come", cites a manager in the ready-mix industry. Maybe we are too pessimistic about the economy. Maybe we are too dependent on bailouts. Either way, we lack the confidence of fund managers both professional and amateur when the market was bullish. Probably when the market goes into hibernation, these fund managers will think of a better plan for the next bull run. If there are survivors during the past recession and depression, definitely we will see some this time around too. The question will always be, "Will the amount of money left in the market or its value for that matter suffice to re-generate a sluggish economy?". 

In economics, I learn that there is a 10 year cycle of an economic recession. Now, I think someone ought to teach that there is a 80 year cycle of a Great Depression! I thought I would only read about it in books and printings of that era. The only recollection of the that 1920s era is the book The Great Gatsby by F. Scott Fitzgerald. However, the story Fitzgerald told that depicts the fruits of the American Dream were quickly forgotten during the Great Depression. Will the USA again repeat this act? Or will the world follow in the USA's footsteps? Conveniently forgetting all things negative while focus on rebuilding a crumbled economy and society, the economic powerhouses might help elevate the world out of this depression. Maybe, a Chinese Dream or an Indian Dream will be more appropriate this time around. 

John D. Rockefeller said that "These are days when many are discouraged. In the 93 years of my life, depressions have come and gone. Prosperity has always returned and will again." (Schultz, 1999)

Reference:

Schultz, Stanley K. (1999). "Crashing Hopes: The Great Depression". American History 102: Civil War to the Present. University of Wisconsin-Madison. Retrieved on 2008-03-13.