Great, Depression!

[Odin]

"Unemployment then, as now, was closely linked to general macroeconomic conditions. The great depression, when unemployment in the United States reached 25 percent, is the classic example of the damage that collapses in credit can do. Since then, most economists have agreed that cyclical fluctuations in unemployment are caused by changes in the demand for labor, not by changes in workers’ desires to work, and that unemployment in recessions is involuntary." Source= http://www.econlib.org/library/Enc/Unemployment.html


So at 8% reported, lets say 10% to make the liberals argument a little easier for them we have a 90% employment rate which is exceptional. Should we get to around 15-20 then I think we can say "depression" but for now, i think its a bad bad recession with several economic cycles converging.

that being said the credit situation is the key, if that dosent clear up then yep depression here we come. as when you base your currency, economic activity and valuations of wealth on credit or a fictional non fixed asset this is what happens from time to time.