Everybody wants to know how low the economy will sink, said Robert J. Barro in The Wall Street Journal. Will this be the worst recession in decades? “The bottom line is that there is ample reason to worry about slipping into a depression.” There's probably a 1 in 5 chance that per-person gross domestic product will fall by 10 percent, which hasn’t happened since the 1930s.
Only “monetary shock and awe” can keep us out of a depression now, said Ambrose Evans-Pritchard in Britain’s The Telegraph. Fiscal stimulus won’t be enough. It may be that to prevent the Dow from crashing to 4,000 by summer the Federal Reserve might have to engineer a “quantum reduction” in mortgage rates, to 2.5 percent.
There’s no doubt we’re on a slippery slope that leads toward 1933, said Steve Forbes in Forbes. At this point, “either Washington will let the banking system go into cardiac arrest”—and a repeat of the Great Depression will be upon us—“or it will take measures to bring it take measures to bring it back to life so the economy can function again.” The Obama administration’s only choice is to do whatever it takes.
THE WEEK'S AUDIOPHILE PODCASTS: LISTEN SMARTER
- Republicans love this new health care plan. Too bad it's basically a tax cut for the rich.
- Is it now OK to have sex with animals?
- In Ferguson, Michael Brown lost his life — and America's police lost the benefit of the doubt
- In defense of Gwyneth Paltrow
- 43 TV shows to watch in 2014
- How to be the most productive person in your office — and still get home by 5:30 p.m.
- 17 old proverbs we should use more often
- Don't blame Chuck Hagel: Obama's foreign policy has been a disaster from end to end
- 8 tricks to surviving the holidays without gaining weight or being grouchy
- Adam Sandler's 'Thanksgiving Song': Explaining the 22-year-old tune's pop-culture references
Subscribe to the Week