The Epi-Depression

I haven't seen any soup lines yet, but if the unemployment numbers keep growing like they have this week, it's only a short matter of time before it comes to this. This morning I was reading about the Great Depression on the web. There are a number of good webpages with interesting information about that period in our history. The thing that scares me is that it reads much like what is going on now.

The Great Depression lasted about 1o years, and during that time the unemployment rate peaked at 25% and never dropped below 14%. We are definitely headed in that direction. An interesting fact is that back then, many rich people felt no impact, and about 40% of Americans never faced any serious hardship. I presume it will be the same this time around. Ten years is a long time and we are just getting started. So far, I have lost 25 percent of my retirement fund, received no Christmas bonus for 2008, have been asked to work less hours each week, and will get no raise in 2009. Not to mention that interest rates on CD's are now down to less than 3 percent.

I'm calling this thing an Epi-Depression, because I'm hoping that it won't last as long as the Great Depression. For those that have lost their jobs this week, it doesn't matter what you call it. It's real and it's here. Hopefully the lessons of the past will shorten the pain this time around.