The United States has already slipped into a deep recession that could be the most serious since World War II, said Martin Feldstein, president of the Cambridge group that is considered the official word on economic cycles.
"The situation is bad, it's getting worse, and the risks are that the situation could be very bad," Feldstein said in a speech yesterday at a financial industry conference in Boca Raton, Fla.
Alan Greenspan writes in the Financial Times via Huff Post:
The current financial crisis in the US is likely to be judged in retrospect as the most wrenching since the end of the second world war. It will end eventually when home prices stabilise and with them the value of equity in homes supporting troubled mortgage securities.
And from the The Agonist:
This Depression could last somewhat over a year, or be much more prolonged if the Fed keeps too many firms on life support. The Japanese did that in the 1990s during their bout with deflation, and it took at least ten years before the economy started to grow again.
Sadly, the only debate left for the United States, and the global economy for that matter, is how long and how deep this Depression will be.