Quote:
Originally Posted by blah98  Not so fast… Depression is not a term to be written lightly in the context of an economic history |
I didn't say we were in a depression, I said that our (current) home prices are falling quicker than during the (past) Great Depression.
Quote:
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AS HOUSE prices in America continue their rapid descent, market-watchers are having to cast back ever further for gloomy comparisons. The latest S&P/Case-Shiller national house-price index, published this week, showed a slump of 14.1% in the year to the first quarter, the worst since the index began 20 years ago. Now Robert Shiller, an economist at Yale University and co-inventor of the index, has compiled a version that stretches back over a century. This shows that the latest fall in nominal prices is already much bigger than the 10.5% drop in 1932, the worst point of the Depression. And things are even worse than they look. In the deflationary 1930s house prices declined less in real terms. Today inflation is running at a brisk pace, so property prices have fallen by a staggering 18% in real terms over the past year.
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I'll say it again though, this is the starting point and things don't look good for us, either way.
