An Overlooked Deep Recession

To those of you who bewail how tough the 2008-2009 meltdown has made recovery prospects, look at past financial recessions and their recoveries.

Fact: The sharper the recession, the sharper the recovery. Despite the excuses if poor economic policies help thwart the subsequent recoveries.

Example: In 1920-1921, the economy or GDP fell almost 24%, wholesale prices over 40% and the Consumer Price Index over 8%. Unemployment went to about 14% from 2%. However, the Treasury balanced the budget, the Fed tightened up, in direct opposition to current U.S. Policy.

The economy came roaring back. (See the Earl J Weinreb NewsHole® comments.)