ANOTHER GREAT DEPRESSION

Another Great Depression

Another Great Depression

Introduction

The U.S' economy is in danger of falling into a recession that will be unusually long and severe. From every point, of view is in much worse shape than in 2001-2002 and it is obvious that the breakdown of the housing bubble is just around the corner. It seems that the continued strength of the financial markets also deceives many people about the seriousness of the economic situation.

Discussion

At this point, I am pessimistic because, so far, and after years of failed negotiations and agreements, different governments have remained in force many tax and administrative obstacles to the arrival of foreign products in a repeated attempt to protect certain domestic sectors from foreign competition. The Common Agricultural Policy (CAP) that prevails in the false oasis of economic freedom in the EU is an excellent example (Fraad, 2011).

In addition, the latest move announced in this area by the French President and current European leaders Nicolas Sarkozy, does not leave much room for optimism, if any if this was the best of the top brace yourselves, then, for the worst. The symbolic statement of intent agreed by world leaders suggests some of the policies in a coordinated way; try to be implemented from now on in order to get us out of deep hole in which the same institutions (central banks, regulators and states) have gotten us.

First, comprehensive supervision of financial institutions. Thus, governments do not hide their intention of creating a new bureaucratic body above and super (hundreds or thousands of new officials in charge of taxpayers) to regulate and control the activity of the large international banks. Imagine a National Commission for Securities Market, and even a re-founded Central Bank, only in a size 10, 20 or 100 times greater than that operates in Spain, ...